Interest Rates Are At Historical Lows

As President of Appleseed Realty GMAC Real Estate and CEO of Mortgage Links, a licensed mortgage banker in N.Y./N.J./Fla.  I meet constantly with banking individuals about interest rate programs.  I recently met with the financial economist for Citibank.

I caution today's buyers on the over the top negativity by so many in the media with reference to home prices.  I point out many of the doom sayers are making millions of dollars by creating fear in the market place, exp. stocks, bonds, housing etc.  to cause prices to fall and they are in what we call short positions.

What they failed to tell the Real Estate community is that interest rates are at a "Historical" low.  Buyers for the five years have purchased homes not on sticker price of the home but the monthly affordable payments.  They did this when rates were 6 1/2% - 7%.  Buyers bought into the over inflated price due to the sub prime mortgage products and inflated appraisal, that off set the over valued price by reducing temporally the monthly mortgage payments. "The Car Syndrome"  you don't ever look at the sticker price of the car, but you give back a car, you are not stuck with the sticker price.  When you buy a house with this same mind set you are totally indebted to the price you paid.

I caution today's buyers to be more concerned about mortgage rates which are today at a Historical LOW.  I am talking 30 year fixed and not a bate & switch loan offered by mortgage lenders to induce originations.  As CEO of Mortgage Links, I must caution you to think monthly payments on a home you wish to purchase today vs. what you believe the price might be 2, 3 or 4 months from now in other words what all the nay sayers are telling you. 

My entire organization is available to you to answer your questions and ease your fears and indecision, created by the enormous negativity you are exposed to daily.  Mortgage products that gave the illusion of savings, these products also produced high income and large profits for the mortgage companies who pushed these products.  These programs put you in a home that 12/24/ or 36 months down the road you would not be able to afford due to what we call reset.  The 1% teaser rate would reset to 6 7/8% rate putting the borrower at a payment they would not have qualified for or even afforded.  It is not my opinion that everything is well, home prices are still probably 3% too  high, this is due to the appraisers that created an inflated home value and caused the present homeowner to purchase homes at inflated values.  I suggest the common sense approach when buying a home today.  Do you love the home?  If so look at the mortgage rate you can secure and compare that to what it was or will be 6 to 9 months from now.  The difference between 5 3/4 and 6 7/8 in a %400,000 mortgage and could be approximately $40,000 more at the increased rate. At GMAC Real Estate &  Mortgage Links our people arre knowledgeable to discuss the options with all our purchasers and borrowers.  I will continue on a daily basis to keep everyone abreast of the "Good" opportunities and let the Gloom & Doom prophets do what they do best Create Negativity.