September 10th, 2020 11:56 AM by Joan Rusco
“There’s nothing to fear but fear itself’. Famous words taken from FDR’s 1933 inaugural address. There is today lots of fear mongering. Let’s take a look at some good stuff and put the fears behind us.
Last November we wrote on these pages:
Veterans and active duty military are being given a financial gift by the mortgage market. A $250,000 house financed with a V.A. loan would have cost about $1,500 a month back in the days when rates were at 6% or almost $2,200 when rates “dropped” to 10% as we described in the previous paragraph. Today that $250,000 mortgage will cost you less than $1,200 a month. That is the gift the mortgage market is bestowing on you. Buy more house for less money today than in decades past. Look where we’re at!
Yes indeed, look where we’re at! Today the picture is even rosier than less than a year ago. That $250,000 VA loan today will cost you over $100 a month less than one year ago. UNBELIEVABLE!
Despite the Covid fears, we are in a housing boom. Will it last? No one knows. There is a fear (there’s that word again) since so many workers have lost jobs we may see a serious rise in the number of foreclosures in coming months. Many lenders offer these unemployed a forbearance meaning they are excused from making mortgage payments with no damage to credit. This payment postponement (not forgiven) lasts from 6 to 12 months. What happens at the end of that period if a home owner still has no income. It could, we emphasize could, start a foreclosure action. But, less than 7% of all mortgages are in forbearance.
We return to the good news. Veterans and active duty military personnel are being give a gift of extremely low loan rates. And the Federal Reserve is now saying they do not see any rise in the Federal Funds rate in the foreseeable future.
Call Brad today at 612.240.9922 and unwrap this financial gift.