Despite Housing Slowdown, Today is the Time to Buy!

I have clients tell me everyday.....Michael, I am going to wait until the market bottoms to "Buy". While that thought may be on the minds of many consumers, the possibility of a significant drop in home price coupled with a terrific downward trend in mortgage interest rates is rather remote.

The real question becomes...."Can You Afford to Purchase if Prices or Interest Rates Rise?????".

Potential buyers and investors have given considerable thought to both housing prices and interest rates recently for two reasons: First, they have been intrigued by comments from national economists about statistics supplied by the U.S. Census Bureau and Department of Housing and Urban Development that showed a 10.2 percent drop in the rate of new single-family home sales between July 2006 and July 2007. Second, mortgage money for many homes will be far more difficult (and possibly more expensive) to obtain, given the subprime fallout and reports that borrowers in the "Jumbo" category (loan amounts greater than $417,000) were facing increased scrutiny.

The idea of "Saving My Money Until Home Prices Come Down" has probably become a contradiction in terms - at least for the forseeable future. Yes, housing is cyclical but it usally does not go backward for very long, if at all. The additional money you "May Save" now, probably "Will Not" offset the potential appreciation or the fatter monthly payment that "Could" result "If" interest rates "Rise".

For instance, if a $250,000 home appreciated 5 percent in the next year, could you sock away an extra $12,500 in after-tax savings to counter that gain???......maybe not. This also "Does Not" take into consideration additional "Tax Savings" from the mortgage-interest deduction. Or, if the market remains "Flat" and "Mortgage Interest Rates Rise", will you still even be to "Qualify" for the home of your choice.

Folks....you have alot to consider......don't shoot yourself in the foot. You may find yourself saving on the "Front-End" only to lose it on the "Back-End.


Take Care & God Bless....See You Next Time!


Michael Patterson
Re/Max Gold Realty
Direct: 301-785-0893
Email: michaelpatterson@remax.net
http://www.annapolis-maryland-realestate.com/
http://www.easternshorehomehunter.com/
http://www.maryland-waterfront-realestate.com/

Patterson - RE/MAX Gold - Real Estate Update - Sept. 2007

Here is the link to my "Sept. Real Estate Update"

Click Here: http://www.Michaels-RealtyTimes-Newsletter.com

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month's issue includes topics such as:

"Homesownership is Good For You"
"What Is The Fed's Discount Rate And Does It Affect Housing?"
"Selling Your Home in a Slumping Market"
"No More Dark Rooms:......How Can You See The Light?"
"Wondering What Your Home Is Worth?"

Plus a roundup of Aug. real estate activity as well as much more advice and information.

I hope that you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topics covered in future months, let me know that too!


Sincerely,


Michael W. Patterson

http://www.EasternShoreHomeHunter.com

http://www.Maryland-Waterfront-Realestate.com

http://www.MdBankOwnedHomes.com

Patterson - RE/MAX Gold - Real Estate Update - Aug. 2007

Here is the link to my "Aug. Real Estate Update"

Click Here: http://www.Michaels-RealtyTimes-Newsletter.com

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month's issue includes topics such as:

"Staging Takes Center Stage"
"Seven Steps To A Credit Score Makeover"
"Coping With Higher Summer Energy Costs"
"Over-Cooked Hype Hikes Kitchen Costs"
"Hot Decorating Tips: Go From Drab To Fab With These Ideas",

Plus a roundup of July real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topics covered in future months, let me know that too!

Sincerely,
Michael W. Patterson

http://www.EasternShoreHomeHunter.com

http://www.Maryland-Waterfront-RealEstate.com

Patterson - EE/MAX

REAL ESTATE: Mortgage Rates Cool Slightly.

As July, 2007 comes to a close we see a slight cooling of the Mortgage Rates. I am quite sure that the softening of the housing market and the reduction in building permit applications were contributing factors.

The 30 year fixed rate fell to 6.69% in the final week of July 07, slightly lower than the 6.72% rate was this time last year.

The 15 year fixed rate was 6.37% in the final week of July 07, slightly higher than the 6.34% rate was this time last year.

The 5 year ARM, indexed to T-bills was 5.69% in the final week of July 07, slightly lower than 5.78% rate was this time last year.


When Is the Best Time To Buy & When Is the Market Going To Hit Bottom?????

You know folks, I have these questions posed to me all of the time. The truth of the matter is....no one really knows.

I can tell you this......this is a "Great Time" to buy....the Buyer has a considerable amount of leverage and buying strength at this time. This is not going to last.

I have clients tell me from time to time that "they are going to wait until the market bottoms out before they buy." I ask them "what if" the mortgage rates go up a point or so when your ready to buy. What then have you accomplished.........you saved some money on the front end and cost yourself thousands on the back end. I ask you?......does that make good sense?

Folks, a lot of people DO NOT take a close enough look at the financing end of their purchase. This is where the your money is made or lost, not that the purchase price is not important but there are other things to take into consideration as well. I guess this is my previous mortgage banking side of me coming out.

If you have any questions, please feel free to contact me at any time. I would love to hear from you.

You can check today's rates and get pre-approved at: www.EasternShoreHomeHunter.com


Have A Fantastic Day!


Michael


Michael W. Patterson

http://www.easternshorehomehunter.com

http://www.maryland-waterfront-realestate.com

http://www.michaels-realtytimes-newsletter.com

Patterson - RE/MAX Gold - Real Estate Update - July 2007

Here is a link to my "July Real Estate Update"

Click Here: http://www.michaels-realtytimes-newsletter.com/

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month's issue includes the following topics:

• Wondering What Your Home Is Worth
• What Your Homeowners Insurance Doesn't Cover
• Current Interest Rates
• When Should Homeowners Jump In?
• Is Your Credit Card Debt. Keeping You Locked Out of Home Ownership?

Plus a roundup of June real estate activity as well as much more advice and information.

I hope that you enjoy this newsletter. If you should have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in the coming months, let me know that also.

Sincerely,

Michael

Michael W. Patterson

http://www.easternshorehomehunter.com/

http://www.maryland-waterfront-realestate.com/