Randy Johnson, president of Independence Mortgage Co. in Newport Beach, author of “How to Save Thousands of Dollars on Your Home Mortgage” and a mortgage broker since 1983, answers questions.

Q. I am ready to buy now but am afraid that values may drop even more. What do you recommend?

A. The “average” value is developed from the whole range of sales. If the average value has dropped by, say, 20 percent, you ought to be able to buy some home at less than average, say 25 percent lower than what it would have been before the decline. The average could drop further and not affect you because you bought lower than average. Someone else may buy a home that is only 15 percent lower than before. Between the two of you, the average is 20 percent, but you got a deal. It also doesn’t mean he was wrong as the home may better meet his needs. Ten years from now, you will both be happy you bought.

No one can predict when the market will bottom out until a year later when you can look at a chart and see when the bottom was reached. It may turn out to be this month.

Bottom line: if you find a home that makes sense for you, you ought to buy now when rates are so low.

Q. I own my house and might rent it out to my daughter. I would like to move to the Murrieta/Lake Elsinore/Riverside area. With no down payment or maybe 3 percent, is this a good time to buy? I would like to know a good and trusted mortgage company, bank or credit union.

A. I don’t know the particulars of the market there but I believe it has been pretty battered, which should mean good opportunities for buyers. As to a lender, I’d get references from friends. Someone will have dealt with a hero. That’s who you should use, too.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search