Arizona Homeowner February / 2010
Inventive Home Lending 1400 E. Southern Avenue, Suite 615 Tempe, Arizona 85282 RETURN SERVICE REQUESTED
The financing of your real estate can be a daunting task. You want the best interest rate and you want the pre-approval, application and close of escrow processes to be hassle-free. I understand. I listen. I respond quickly. • I specialize in custom-designing a specific loan for each individual client. With over 400 loan programs at my fingertips, you will get a mortgage that best fits your unique situation. • I use the latest technology in loan underwriting. You’ll receive a loan decision within hours. Don’t wait days to find out if you qualify for the home you really want! • Closing thousands of loans and working with thousands of borrowers assures you that I have the knowledge and expertise to handle any situation. • My impeccable reputation is my best asset. I always strive to exceed your expectations!
CALL ME TODAY!
STARGAZING
2010: A Road to Recovery? Due to the overall economy, many people are more than happy to move on from 2009. It was just not a good year financially for many. But despite how bad 2009 was, there is light at the end of the tunnel for our real estate market. In 2009 we started seeing a rebound in housing that is setting the stage for an improved economy for 2010 and beyond. If we look back to early 2009, there was much uncertainty everywhere. The fall 2008 presidential elections gave us a new president on the heels of a devastating stock market plunge. And everywhere you looked, banks big and small were going out of business. And due to all of the uncertainty, home sales at the end of 2008 and beginning of 2009 were almost at a standstill. It was a scary time entering 2009. By spring of 2009, we started seeing some confidence come back. The bank failures slowed, and the stock market started regaining ground. And at about that time savvy investors and homebuyers took advantage of cheap bank-owned home prices and homebuyer incentives that started a buying frenzy. At the close of 2009 Metro Phoenix recorded just above 93,000 single-family homes sold (an average of 7,750 sold per month). That was a solid 55% rebound from the 60,108 homes sold in 2008. And the strong 2009 home sales numbers actually set the mark of being the 3rd best year on record for our market behind 2004 and 2005. Much of the gains in the stock market in 2009 resulted from companies strengthening themselves by cutting expenses and payroll. And as a result, many people took pay cuts or were laid off in 2009. That caused a lot of personal pain for many and added to the mortgage delinquency and foreclosure problem. But when you’re in the grips of a recession, you want to look for any signs of good news. History has taught us that in a recession, the bottom is often reached
while unemployment is still at a discouraging level. We remain hopeful that we are at the bottom for unemployment with gains coming in 2010. In 2010, we expect to see continued improvement in the stock market as consumers start to spend more on products. Our real estate market will probably not be as strong as the record numbers evidenced in 2009. However, low interest rates and home buying incentives should help keep homes selling at a level that outpaces foreclosures. And that is an important key to our recovery. Arizona, and our national economy, is really at the mercy of how well real estate continues to sell. For every home sold, property taxes get paid, and products and services get purchased. A good home sales environment immediately benefits the livelihood of the real estate community of Realtors, lenders, title companies, and the county tax assessor. But when you really look at how much money an average new home buyer pumps back into the economy you see that everyone from Hoover vacuums to Home Depot benefits. And the cash put back into the local and national economy is what will create jobs and a stable economy. The obstacles to an improvement in 2010 include continued job loss and foreclosures that could sour both the stock and real estate markets. I therefore believe that both the Federal Reserve and the Obama administration will have to continue to do what they can to keep interest rates low while extending incentives to purchase homes and other products. That is the medicine to cure what ails us. I wish everyone the best of luck with improving their lives and livelihood in 2010!
Desert Skies Offer Abundant Viewing
HELP FOR HOMEOWNERS
• Mortgage rates are at a 50-year low. Almost everyone can benefit by either buying a new home or refinancing to a low fixed rate. Call now for a free review of your options. • First-time home buyers are eligible for up to an $8K tax credit for buying and closing on a home by 12/1/09. That’s free money if you buy a home by the deadline! • If you are behind on your mortgage payments the government has offered incentives to lenders to modify your loan so that the interest and payment is lower. (We do not offer loan modifications but would be happy to offer free advice on how you can get help.) • If you have a Fannie Mae, Freddie Mac, FHA or VA loan you may be eligible for refinancing even if your owe more on your loan then your home is worth. (Call us to determine if you are eligible.)
Brady Holland President 480.627.2423 bradyh@ihlending.com www.ihlending.com
MORTGAGE RATES AS OF 1/10/10 Loan Rates for $150K-$417K
30-Year Fixed at 5.000%/5.309% APR 15-Year Fixed at 4.625%/4.879% APR
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Loan Rates for $418K-$1.5M
5/1 ARM at 4.375%/4.672% APR 7/1 ARM at 4.750%/5.099% APR
*Note: Quotes assume primary home financing with 720+ fico score on a single family property with 20%-30% equity. All quotes offered at 1% origination fee. Certain restrictions apply.
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Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
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