Well here we are, about to say goodbye to 2008. One of the worse economic, financial, and housing markets on record. With that said though, it's more about out with the old and in with the new. Perhaps a bit of hope wouldn't hurt either. Hope that the financial slide slows or stops altogether, hope that job numbers turn around, and lenders open up their billions they seem to be getting of our tax payer money. Not everything is as bleak as it may seem at the beginning of this, it's just been a tough year on so many levels.
So where do turn for 2009? Depending on where you are in your own situation there are some things that are good. If you're looking to save on your house payment then it may be time to refinance (refi) your mortgage. The one good thing that is seemingly coming out of the latest bail out is mortgage rates have come down, some near 5 1/4%. Depending on who you talk to some lenders, and others in the mortgage markets, say that if you can save 1% on your mortgage that's not bad. If you can save 2% or more then it may be time to really think about doing the refi though. Go to an online mortgage calculator, like the one on Kirkrealtyterrehaute.com and see what your payments could be if you did refi your mortgage. Of course should always check with your lender to see about current rates and loan options, they can also figure the amount you could save by doing a refi.
Another aspect of the current market is that home prices are down, still. This is the double edge sword, good if you're buying, bad if you're selling. So if you don't have to sell your home, then try to wait it out, depending on what you read some say 2009 will be a slow recovery year, so prices may not start to go up right away; hence the refi option. If you're looking to do some investing and buy a home for an investment property then it could be the time to do that with the amount of inventory that is out there.
There are some different things to look at when buying an investment. One, what is the amount of work that you may have to do to the home, if any, to get it ready to rent. Mortgage rates are typically higher then common mortgage rates for an investment property. Lenders are more then likely wanting 20% down now for an investment property, which can be a hefty amount of course to put down. Investment properties are not for the faint of heart though. You may have already heard of horror stories about what has happened to an people who have had an investment property. I've been through that experience myself, both good and bad. Bottom line now is that there is a large number of properties out there and with rates being low it could be time to get into that side of the market.
As we go into the New Year we are in just as much uncharted territory as we have been in the last year. But don't let all the "gloom and doom" talk make you feel like the sky is falling. While we wait for some signs of a turn around in the real estate market there are still things you can take advantage of now. So whether you're looking to refinance or maybe get an investment property, this could be the time.
Hope you all have had a good holiday season, have a great, and safe, New Year.
For all your home buying, selling, and property management needs call...
Kirk Realty Group, LLC
618 Wabash Ave
Terre Haute, IN 47802