Why is the real estate inventory so tight? Not only in the Boise market but around the United States, real estate agents are reporting record low numbers of homes for sale, increasing prices
and rejuvenating new home construction, but why now? Why are people reluctant to sell?
It’s a great time to
refinance. Perhaps one of the
single biggest reasons people are not selling is due to the lower interest
rates and the federally backed HARP program.
HARP ( the Home Affordable Refinance Program) allows borrowers that have not missed a payment on their house to
refinance, even if their home is valued below the current mortgage amount. Caveats to the program: you cannot short
sell. You have to stay in the home until
such time as you can afford to make up the difference or pay off the balance of
the loan. So if a couple owes $200,000 on
their home, the interest rate on their loan is 6.25% and its value is now
$155,000. They can refinance and the payment goes from an estimated $1,231.43
for principal and interest over 30 years to $558.29 at 3.5% for principal and
interest over 30 years. Who would want
to sell? Many people will not qualify
for a short sale; they have good jobs, are not distressed and want to stay in
their home. It is a simple math equation
but what a great opportunity.
If your home is not under water it is also a GREAT time to
visit the subject of refinance. All of
the aforementioned scenarios can play out, meaning if your home has equity,
lenders are refinancing homes at a torrid pace.
Rising prices in real estate account for a good portion of these new opportunities
as America refinances its long term mortgage debt in and around 3.5%.
I have trusted mortgage lender contacts and would be happy to do a
comparative market analysis on your home so you can see what you may or may not
qualify for, in relationship to home value and loan amount. If you need more space, an extra bedroom or
two, larger house or the other direction, downsizing, consider SELLING
NOW. Act NOW while rates are at historic
lows, inventory depleted and buyers are clamoring to get into the market.
Call me today for more information,
Rick Bennett, Your Best Boise Real Estate Agent
Rick Bennett, Your Best Boise Real Estate Agent
208-407-0532
rickbennett@id-buy.com
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