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Paul B. Farrell isn’t always right, but he sure knows how to provoke some worthwhile discussion. In his most recent column for Marketwatch.com, Mr. Farrell suggests the final question of the game show depicted in this year’s Oscar-winner, Slumdog Millionaire, should have been:
“Will America's recovery package of stimulus handouts, bank bailouts and home foreclosure relief plans work?
I don’t know if it’ll be the stimulus plan that does the job, but the U.S. economy will right itself. In the mean time, here’s what present and future homeowners have working for them—and it’s a lot:
(1) Even with recent upticks, interest rates are still near a 45-year low, (2) the correction in housing prices has made homes affordable again for many, and (3) we now have a stimulus plan that includes: (a) An $8,000 Homebuyer Tax Credit for first-time home buyers, (b) Increased FHA, Fannie Mae and Freddie Mac loan limits, (c) Access to Low-Cost Refinancing for Responsible Homeowners, (d) A $75 Billion Homeowner Stability Initiative, and (d) Support of Low Mortgage Rates.
BUT, these things won’t last forever…
Whether you agree with the concepts underlying the “Stimulus” process, or not, recent legislation and related executive orders have resulted in some outright gifts to present and future homeowners. Arguably, at least from the individual’s perspective, no one should pass them up if they’re in the market for a home, a method by which to refinance one, or a means through which to avoid foreclosure.
Warren Buffett is reputed to have said his strategy is to “be fearful when others are greedy and to be greedy only when others are fearful." Given where things are in the current economic cycle, it might be worthwhile to think about how his view might apply at this point in time—especially in the context of deciding whether to invest in a home, or save through refinancing.
Remember, stimulus initiatives will involve complex rules only the top echelon of the mortgage industry will be capable of understanding. Therefore, if you or someone you know decides to pursue the purchase or refinancing of a home, or might benefit from assistance in avoiding foreclosure, let the professionals at CSW Home Loan assist in going about things the right way.
EchoPoint Mortgage Company / CSW Home Loan
Phone: 214.559.0277
Email: info@cswhomeloan.com
Website: www.cswhomeloan.com
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