Charlotte Business Journal Article

On 2/15, the following article “Fewer Opt for Adjustable Rate Home Loans” by Jeff Clabaugh was published in the Charlotte Business Journal. http://bit.ly/dyAypN

His research shows that the low interest rates are causing more homeowners to refinance their mortgages than cause buyers to buy. It was reported that two out of three mortgage applications were for refinancing and most opting for fixed rate mortgages.

Buyers will remain on the fence until the interest rates start to trend up or if they think the prices have hit bottom. Each day, predictions from experts are published for all to read and consider. Remember, the experts caused our problems today. You have to do your own research. Just because applicants are seeking fixed rate mortgages, it doesn’t mean that an adjustable is not right for you. There are many mortgage loan programs on the market and the pendulum has swung to more consumer protection. A FHA adjustable rate mortgage program should be considered based on your own circumstances with the fist reset in 5-years.

In my opinion, this mortgage program is perfect for a single professional. The only question that should be asked – almost like a job interview – “Where do you see yourself in 5-years?”

Remember to look at trends and not year-to-year comparisons. As an example, in the article, it states that in January 2010, the number of homes sold in Charlotte increased and the average list price increased. However, both statistics were lower than in December 2009. Bouncing along the bottom!

It is not a mystery why buyers are not in the market and there are a multitude of reasons. The most compelling explanation is that they are listening to the experts rather than understanding their own circumstances and answering the question – “Where do you see yourself in 5-years?” Based on the answer, should you buy today when all of the stars are aligned for buyers?