Be ID Safe

Here's a video about keeping your identity safe from the publishers of "Business Week". This video about ID Theft is worth the very short time it takes to view. Keep safe!

For Sale: $ MONEY $

Save about 62% from 1981 mortgage rates. The average home buyer in 1981 paid 16.9% for their mortgage interest rate. Prices also fell dramatically in 1981 from their previous highs.

Those who recognized this as temporary and purchased a home then were greatly rewarded for their confidence in the future. Prices came back and continued to rise. They also refinanced those high mortgages after a relatively short time. Sometimes a little historical perspective is interesting and helpful. In the article "Mortgage Money On Sale" you can view a chart illustrating annual interest rates from 1981 through the present. 5.1% available today sure looks better than 16.9% in 1981. Maybe you should consider refinancing your present rate; or use these rates on a new purchase. Another article in the "Cincinnati Enquirer", "Market Conditions Perfect" talks about other benefits that may be available currently.

Radio Spots

There were two radio interviews in the past few days that you may find interesting. The first was aired on Sunday, January 11th, 2009, on WVXU as part of their "Big Story" program. It features an interview with Dan Brady, the 2009 Chairman of the Realtor-Lender Committee of the (CABR) Cincinnati Area Board of Realtors. Jack serves with Dan on this committee. This ten minute interview can be listened to at https://webmail.cboki.com/exchweb/bin/redir.asp?URL=http://198.234.121.108/cincinnatiedition/011109_BigStory.mp3

The second interview aired on Tuesday morning, January 13th on WLW radio. This interview again featured Mr. Brady along with Paul Jacob, the 2009 CABR President. This was a three minute a.m. drive-time discussion of the fact that we are probably at or near the bottom of the Cincinnati real estate market and poised for a turn around in the near future.

Both of these interviews were an excellent discussion of our current market. The $7500 federal tax credit to home purchasers was discussed as well interest rates and availability of of financing. Please turn on your speakers and check this out. You might just be suprised.

What's Going On?

People have been asking this a lot lately. We all want to know - to make some sense of what has been happening. To be sure, many have been devastated by what's been happening in our economy. While others have been eyeing the opportunities these times present.

Home foreclosures are way up while stocks are way down. Just what is happening?

It's easy to start blaming everyone for our situation. I have my own ideas as to some of the causes for our current situation as I'm sure that you do too. However, a far more productive approach is to ask ourselves "what so we do now that we're here?" Fortunes are made and fortunes are lost in difficult times. They are made by taking bold well thought out steps that take advantage of current situations. Losses usually occur by being afraid to move or by waiting too long to move. Wrong moves are also dangerous. So how do we know what is best?

Can you think of actions we could have taken in anticipation of these recent times that would have prevented loss or rewarded us with gain? I certainly can. If I had only shifted certain stock holdings when I first saw problems brewing I'd be better off today. Perhaps you could say the same. However, right moves make opportunities into realities for us.

So, what do we do about this? Are there opportunities available to us right now that didn't exist to this extent previously? What are they; and what will we do about them? What is on the horizon that will benefit us by acting now? Who is currently benefiting and why?

As noted above, stocks are down and foreclosures are up. This has created an oversupply of properties for sale resulting in much lower sale prices for homes. Like stocks, this oversupply is expected to eventually return to a more normal balance. When this happens, prices and mortgage interest rates will almost certainly increase. We are already starting to see inventories level out, and in some cases reduce. Some economists in our industry are even suggesting that we may have already bottomed out or soon will.

What happens next is not certain. It never is. But the signs seem to be appearing out of the fog that may suggest an easing of the crisis with more of an eye to the future. People with reasonably good credit and good employment are in an excellent position to benefit.

Perhaps it's time to refinance your mortgage. Rates close to 5% may be available to you. Or maybe now is the best time to buy your first home or move up to a larger one while prices are very favorable. The best prices seem to be available on some of the upper priced homes. Could this be your opportunity? Is now your time to benefit from being in the right place at the right time? At least it's worth thinking about.

Regardless of what you decide to do - or for that matter not do - we'd like to be here for you. We've helped many in 2008 take advantage of this market. We've advised others to sit tight for a while due to their own circumstances. Either way, we want what is best for you.

Some may need to sell their home but are afraid of this market. We'll help you maximize your home's sale price. It probably won't bring what it would have a few years ago; but we can help you realize the top price available at this time. These are times when our experience really matters. We also know that it's more important to give good advice - advice with your best interest at heart. It's why people trust us. We pledge to keep that trust. We know that's why so many of you refer your friends and family to us. We appreciate that more than you know.

We're looking forward to 2009; and we wish you the very best of God's blessings in this new year. Please look forward with confidence and optomism. Then, ask yourself how you can encourage someone who needs it most. When we do this we will certainly have a good new year.

FHA Changes Down Payment and Maximum Loan Amount

FHA changed its Down Payment requirement and maximum loan amount effective January 1st, 2009. Highlights include:

1. New down payment amount on FHA Purchase Loans has been increased to 3.5% from 3%.

2. Closing costs are not counted toward the 3.5% down payment requirement.

3. Seller still permitted to pay up to 6% toward buyer's closing costs.

Also effective this year the FHA maximum mortgage amount in the Cincinnati MSA (Hamilton, Butler, Clermont, Warren, Campbell, Kenton, Boone and Dearborne counties) will be adjusted to $271,050 from $337,500 for a single family home.

Information provided by Dan Brady of Ross Mortgage Corporation. For further details he can be reached at 513-490-7439.