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The Membrane Domain
NOTES ON MORTGAGES
June 1995
Interest Rate Trends.
Hooray for bad economic news! Interest rates continue to decline as the talk
of a slowing economy adds still more downward pressure. The rush to re-finance
could be heating up at this very moment.
If a mortgage has an interest rate
greater than 8.25%, it is time to consider re-financing (or, if the planned
time of ownership is for less than 7 years.)
The Real Estate Market.
Despite the falling interest rates, every region in the U.S., except
the Midwest, is showing continued weakness in the housing market. The
Northeast has been seeing the largest declines in sales.
With the gross domestic product estimates
showing the economy to have slowed to
the lowest growth level in over a year and a half, expectations are not high for
a quick turnaround ... add in the fact that the "unsold homes" inventory is
at its highest level in nearly five years, and the picture looks stagnant for
quite sometime.
A Smart Time To Consider Your Real Estate Holdings?
The first thing that should come to mind when the above mentioned market
conditions exist is how to best take advantage of the situation.
#1) Re-finance any mortgage.
#2) Examine the disparity between the after tax interest rate you
would pay on additional monies borrowed against real estate and the
rate
of return you would receive if the equity where invested elsewhere.
#3) Buy low. Sell high. This investment advice will never fail you. Real
estate prices and mortgage prices are at low levels, therefore;
buy real estate.
DANIEL BROUSE
E-Mail brouse@membrane.com
(800) 783-9333 x192
(610) 397-0330 x192
Beeper 215-960-5556