Is this Real Estate Market going to improve?

The current real estate market reminds me of the time I started in the business. 1990 was the beginning of a down turn in home prices. We were coming off of some recent highs in terms of average prices and number of sales. The Gulf War had caused widespread panic among many Americans, whose last memory of war as a nation was the Vietnam fiasco. Interest Rates were dropping into the single digits for the first time in 12 years. Still the housing market continuted to spiral downward.

Today we have prices dropping, home sales way down, foreclosures increasing and re-emergence of short sales. We are still in the Middle East fighting terrorism having just killed Osama bin Laden. Interest rates continue to fall, yet we don't have an upturn in the housing market. Fear not because history does repeat itself. We will again experience rising home prices and increased sales. Hang in there because the market will come back.

For a free credit report contact me at 484-695-5972

Andy Williams
President
Abacus Regional Mortgage

WHY AREN'T PEOPLE BUYING HOMES RIGHT NOW?

It’s an unbelievably good time to consider buying a home with prices down at least 20% from their 2007 highs and interest rates at almost historic lows. The average consumer has so much more buying power today as compared to years past.

The principal and interest payment on a 2007 house selling for $ 240,000 at 2006 interest rates would be $1,200. That same house selling at a 20% discount and at current interest rates is now $ 800. What is your opinion?

Andy Williams
President
Abacus Regional Mortgage

HOW HARD CAN IT BE TO GET SOCIAL SECURITY IF YOU ARE 62?

Shouldn't social security be easy to obtain when you are of retirement age? I have a friend who continues to bang their head against a brick wall from attempts to have the social security administration (SSA) grant them retirement benefits. How difficult can it be to start getting benefits which are rightfully theirs?

After applying last year, this file is in limbo in some sort of SSA purgatory. Months upon months of phone calls, repeated visits, letters from their Congressman and still nowhere? It shouldn't be this difficult. After doing some research, I found that the SSA doubts whether they have indeed retired. After furnishing the SSA with proof of retirement in the form of a tax return showing low earnings, and a letter from their last employer stating they are retired, the SSA still questions their validity.

The current schedule of retirement ages are as follows:
Age 62, Partial Retirement Benefits
Age 67, Full Retirement with Full Monthly Benefits
Age 70, Full Retirement with Unlimited Additional Earnings*

* After age 62, a person can earn additional income from another job but must earn below $ 14,160 for the year. Any earnings exceeding this amount will be paid back by deducting $1 of Social Security Benefits for every $2 earned from other employment.

What difference does it make if they continue to work? Let's pretend they aren't retired and are going to continue working. If they earn over $ 14,160 and receive SSA benefits, it will have to be paid back next year. They wouldn't be getting away with anything anyway! What do you think?

Andy Williams
President
Abacus Regional Mortgage

WHICH IS BETTER FHA OR CONVENTIONAL FINANCING?

Is FHA still the best way to go? I was recently asked this same question when the subject of PMI insurance came up. The monthly risk premium on FHA increased from .9% of the base loan amount to 1.15%. This marks a 27% increase from last year and 130% increase from three years ago. With many conventional programs offering no PMI insurance with a slightly higher interest rate, the total monthly payment is less than loans with PMI insurance. Is it better to go back to conventional financing?

Are knowledgeable experienced Realtors a Good source of Information?

Do you accept a recommendation by your realtor? Ever ask them for some names of good home inspectors, attorneys or mortgage companies? I just saved a home buyer a ton of money. She was going to Wells Fargo ( her bank ) for her mortgage until her realtor suggested contacting me to compare rates and fees. After shopping both Wells Fargo and my company, she saved 3/8% on the interest rate and $ 844 in total closing costs. With a monthly savings of $ 46, she saved $ 17,000 over the life of the loan by going with my company. Don't you think your realtor knows what is best for you?

Andy Williams
President
Abacus Regional Mortgage
484 695 5972