Current Low Rates vs. Renting

Currently rates are extremely low due the Fed moving part of their portfolio to long-term treasury securities. This move is also known as “The Twist” a tactic that was used by the feds in the 60’s to spur lower rates on money borrowed.  Rates were already extremely low, but this move caused rates last Thursday to drop to 3.75% on 30yr Conventional instant loans. The rates as of 9/28/11 increased back to 4.0% in spite of the move by the feds. With rates as low as they are makes affording a home very possible. This is especially the case when rental rates across the country are extremely high currently. The demand for rentals out weigh the supply currently which ultimately drives up rental costs and favors landlords.

I lived in a apartment and rental home when I was in my early 20’s. I am now 38 and cannot imagine having to pay some else s mortgage. I currently have 3 kids, mother-in-law, and my wife living in our home that we bought in 2005. My wife and I have been home owners since we were 26. Obviously most would agree that they would rather own than rent.

If you have at least a 640 credit score and 3.5% down payment, you can get a home in today’s market as long as you qualify. Its not as hard as the media portrays. The main difference now compared to a few years back is you need down payment unless you qualify for a USDA loan or a VA loan which both loans are 100% financing.

Nether less its a piece of mind owning your own home. Its the dream of all Americans. Don’t let the current negative media prevent you from taking advantage of these low rates and having your stake in the American Dream of home ownership.

If you are buying in Texas, apply with us @ www.mikeclover.com.