The predicition from economists is now that if the Fed Chairman lowers the key Federal Funds Rate it will be by only .25%. Or, Bernanke may leave things the same in an attempt to curb the rising commodity (Oil/gas, wheat, gold..etc) prices (inflation?) that we are all very aware of.

Some say the Federal Reserve Board has lost sight of one of their main objectives to curb or keep inflation under control by sharply lowering interest rates from 5.25% at the start of the Mortgage/Subprime Meltdown to the now very low 2.25%. The Prime Interest Rate (Prime)is very closely tied to the Federal Funds Overnight Lending Rate which stays right at 3% below the Prime. The Prime Rate (Prime) is what credit card, car loan, personal loans, & Home Equity Lines of Credit (HELOC) are calculated on. By lowering rates, The Fed, helps to stimulate the economy by reducing the cost of credit for consumers which usually causes people to get out in the market and buy more stuff.

Example: Due to an unforeseen flood, my wife and I had to remodel our home. As this was unplanned I used our HELOC to pay for a portion of the cost. The balance on our HELOC is approx $90,000. The monthly Interest Only (I/O) payment before The Fed began lowering interest rates in Fall of '07 was $581.25/mo. After the 3% decrease, the payment on the same balance (it's I/O so doesn't get paid down unless extra payments are made) is only $356.25. That's over a $200 difference.

The lowering of rates was put in motion in an attempt to keep the US Economy out of a recession as a result of the Subprime Mortgage/Credit Crisis. Has it worked? We'll see--it can take 6-12 months to see the full results of The Fed lowering rates. Unfortunately, unlike consumer credit like I mentioned before, mortgages aren't directly affected when The Fed lowers rates. So, we haven't seen a dramatic decrease in the interest rates for 1st Mortgages. We have seen many of the more creative and higher Loan-To-Value (LTV) programs being eliminated. This is causing there to be fewer buyers and, as a result, home prices have declined even in strong economic areas like the Puget Sound. What does all this mean? Investors: Now is a great time to pick up some Real Estate! Home prices are currently a bit lower, sellers are more flexible, and consumer credit is less expensive.

Example: Get your Integrated Agent (like myself) to find you a good quality home at a below market price (short sales are a plenty right now). Negotiate the seller to buy your interest down & possibly accept an extended closing, so the property will cash flow immediately (more rent than expenses=$$$/mo.). Maybe do some minor quick fixes, using low cost consumer credit, if absolutely necessary. Plan to hold the property for a minimum of 5-10 years. The results of an investment like this will include ongoing cashflow, a build-up of equity, plus additional bonuses which may include tax advantages.

This is investing 101 - Buy Low, Sell High. When is a better time to buy low? Contact me for a personalized investment analysis.

Economic Stimulus Video

Check out this video on CNN Money. It tells exactly what I have been promoting over the last couple months. The Stimulus package has some fantastic benefits for those homeowners who owe more than the standard convention loan limits of $417,000. These new loans and savings are available now. Just give me a call to see how much you can save.

http://money.cnn.com/video/#/video/fortune/2008/04/17/fortune.sloan.mortgage.fortune

If this link doesn't work in your browser go to http://money.cnn.com/video/ and find the stimulus plan's hidden gifts

My 1st Blog Post -- What I do.

I work mostly independently. The company I hang my licenses at is "The Real Estate Group" & "Integrated Mortgage," Jim Turner owns these as well as Integrated Property Management & Integrated Escrow. I was lucky enough to start my real estate career at these companies in Jan. of '05. I, unlike many real estate agents, received extensive training in many different fields including: Agency Law, how to represent both buyers and sellers, financing, appraisal, title, escrow, home inspection, and negotiation. Over the last 3-1/2 years I have helped my clients work through many different types of transactions.

What I enjoy most is representing those clients who are ready to move up into the next class of home. This is where an Integrated Agent really shines. Because I hold both an Associate Real Estate Broker License & a Loan Officer License, I am able to assist these clients with their entire transition into a home that better suits their needs. This allows me to make sure the transaction goes smoothly all the way to closing. I am also able to make sure my clients are getting the best deal possible in both their real estate negotiations & their financing. This one benefit has translated into savings in the $100s/mo and some of my clients have been able to purchase up to $60,000 more home for similar payments as the lesser expensive homes they were previously looking at prior to working with me.

Here are a few of the services I provide:

Selling
My cross training can provide insight into the thought process of buyers as well as make sure that when an offer is received it has the ability to successfully close. I also make sure my sellers' properties are consistently & continually being marketed to attract potential buyers who will see the highest value in the homes.

Buying
As an Integrated Agent who handles virtually every aspect of the transaction I am able to make sure your purchase is smooth and effortless. Having control of both your real estate and financing allows me to make sure you get the most benefit from the negotiations of a purchase & sale contract, allowing you to purchase significantly more home for your hard earned money.

Investment Analysis
I have the tools and experience necassary to make sure you take into consideration all of the important factors before making a commitment to purchase a property. Using our Return-On-Investment calculator you can see if a particular property has the potential to make your specific goals, allowing you to make an fully educated decision about whether or not to proceed with investing.

Refinances
My cross-training and continious observation of the underlying factors that control how interest rates & lending guidelines change allow me to predict the best time & whether or not a refinance is the best option.

Reverse Mortgages
Just one other option available to homeowners 62 and over. An easy way to access the equity in your home without having to sell.

There are many other educational services I provide to my clients throughout the real estate process. Please check back often to find out what is going on in the market through my eyes. I will continue to keep this blog updated with current information as I become aware of it.