What should I do?  Is the market ok? Interest rates are really low, should I refinance?

Theses are questions that people ask every time I go out.  The answer varies and is not that simple.  Interest rates are really low, but if you think you will be moving in the next year, then the cost of refinancing is not offset by the lowered payments.  You should speak with an accountant if you are unsure of the true costs.  Sometime the banker giving you money is not looking out for your long term interest.  They entice you with the lower payment and roll the closing costs and appraisal fees into your new loan.  This just raises the payoff on your home and you will have wasted this money if you will be selling in the near future. 

I define the near future as less than two years.  Some loans may charge you a slightly higher interest rate to compensate for the fees and not raise the loan amount.  This might be a better route if you know you will be selling, that is if it lowers your monthly payment.  Also if you've paid 4 years on your loan don't just go into a new 30 year.  set the amortization at 26 years and see what the difference in payment is, why pay interest for an additional 4 years if you do not have to.

Now might be a great time to move up or down into the right sized house.  There are great opportunities on the market.  In our area we will see more properties coming on the market and the perfect home for you might be among them.  There will be more foreclosures.  There is a shadow inventory in our area and it will be coming on the market this winter.  Foreclosures do sell for less than a nice home, you may be able to get a good buy.

You might look at an investment property.  Rentals are in high demand.The stock market is not doing all that well, low returns and lots of uncertainties.  Maybe its time to invest in real estate.  Rates are low and prices are down.  If this is something you might want to do please call me to discuss being a landlord.  It is not for everybody.  You must be disciplined and reinvest your returns into your property or save for that big repair.  It is not a matter of if you will need money for your rental, but when.

I get a lot of questions about real estate and I love to answer them.  Real Estate is local, you should talk with a local expert.

Call me if you would like to talk, 907-360-7471.