For those people who are still under the impression that it’s best to wait before making a property purchase (whether it’s a home or vacant land), think again. The Fed is discontinuing their purchase of mortgage-backed securities, effective 3/31/2010. What does that mean for those of us that intend to borrow money to close on a home or land? It means that interest rates ARE GOING TO RISE.
The Federal Government has been involved in purchasing mortgage-backed securities for the past while in order to be able to stabilize interest rates and the housing market in general.
Most MBSs are issued by Ginnie Mae or Fannie Mae or Freddie Mac, which are US government -sponsored enterprises. Ginnie Mae guarantees that investors receive timely payments. Fannie Mae and Freddie Mac also provide certain guarantees and have special authority to borrow from the US Treasury.
If you’ve been considering the purchase of property, the time is NOW. Most real estate is going to be the highest priced investment any of us make. Add an extra percent or percent and a half to the cost of the property. Now, you have an additional investment of potentially hundreds of thousands of dollars over time.
An investment in Cashiers homes and land, Highlands Homes and Land or Lake Toxaway Homes and Land is still one of the best investments anyone can make.
Contact Merry Soellner, your Cashiers, Highlands Real Estate Professional for information on YOUR property purchase! Call 828 399 1580.
