Monday, November 14, 2005

Current Market and Mortgage Options

According to tody's T.J. Knowles Mortgage Newsletter, which I find very informative and entertaining, interest rates are up and expected to keep climbing. He also says that property values are flattening and even going down in some areas. Even though he works in the southern California area, I see the same things being true up here.

His recommended strategies: Take a long position on your mortgages- If you can afford a 30 year fixed or 10 year ARM and plan to keep the property for 4+ years, consider making that move. 40 Year amortization (lower payment) is available, and interest-only terms may be the ticket if you have good equity in your property. If you have good rentals, you may be in the catbird seat as the market slows. Protect your interest in these Non-Owner Occupied properties by securing a longer-term loan. If you anticipate needing cash out for repairs, etc, you may be better off moving on it now rather than in a year or two.

The most important thing contained in his newsletter today:
Supply and demand rule, but those who ignore cycles are bound to be run over by them.

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