It's a Great Time for Housing Deals

By
Real Estate Agent with The Chad Madlom Team

Daily Real Estate News  |  July 26, 2010  |   Share

It's a Great Time for Housing Deals


Paying off an underwater mortgage and buying a better home could be the best tactic in this troubled market.

"If you are trading up, what better time than when interest rates are at record lows and the cost of the trade-up is much less than it used to be?" says Christopher J. Mayer, a Columbia Business School economist.

With 15-year fixed-rate mortgages at about 4.5 percent, it also makes sense to pay off the mortgage and keep the house. "At this point," says Jay Brinkmann, chief economist of the Mortgage Bankers Association in Washington, D.C., "if they don't have anything else that is bringing a tremendous return, then they are buying themselves an annuity by paying their house off sooner than they needed to."

Source: The Wall Street Journal, M.P. McQueen (07/24/2010)

Copyright National Association of REALTORS®. Reprinted with permission.

Comments (1)

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

It is a wonderful time to trade up in the San Ramon CA area. Entry level and moderate homes continue to increase in value, but the upper end is not as strong.

Aug 08, 2010 09:52 AM

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