INTEREST RATES The Federal Reserve lowered its key interest rate last month to 2%, which is the lowest its been in almost four years. The effect of this has been a reduction in the prime-lending rate for businesses and consumers to 5%. Mortgage rates are also very favorable at this time for buyers and those looking to refinance existing mortgages. Presently, a thirty-year fixed rate VA guaranteed loan at 6.25% can be had for zero points, or 5.75% for those willing to pay just under two points. Each point is equal to one full percent of the total loan amount. The thirty-year fixed rate on conventional loans is slightly better with one and a quarter points needed to buy the rate down to 5.75%. Refinancing your existing mortgage is generally encouraged if you can reduce your present interest rate by at least 2%.
U.S. CENSUS BUREAU According to the U.S. Census Bureau, there are an estimated 4.6 million 25-to-34 year olds living at home with their parents. Based upon the fact that the homeownership rate of those 45 years and younger is 41%, there are 2.7 million potential renters in this group.
FORECLOSURES There are now currently 145 foreclosures in Bell County that are pending sale this month. This number is down slightly from previous months. VA foreclosures make potentially good investment properties for those interested in purchasing additional rental units. The current VA Vendee interest rate being offered is 6% and only a 5% down payment is required for investors. The VA limits each investor to a maximum of five properties per year. For more information, contact real estate broker Vernon MacHardy at 254-289-5905 or at vmachardy@cbunited.com.
DIRECT DEPOSITS Junes electronic direct deposit of rental proceeds will be in the bank on Tuesday the 10th due to the 8th falling on Sunday. Your money is normally in the bank on the 9th of each month except for months when the 8th, 9th, or 10th fall over a weekend or holiday.
MEMORIAL DAY Our office will be closed on Monday, May 26th, in observance of this patriotic holiday honoring those Americans that have sacrificed their lives for this great country. Also referred to as Decoration Day, Memorial Day became a federal holiday in 1971. Because of our close association with the military, we are constantly aware of the sacrifices being made by our armed forces. We are extremely proud of these brave men and women, and of all service members that have died defending our freedom.
He that blows the coals in quarrels that he has nothing to do
with, has no right to complain if the sparks fly in his face.
David Gerke --Benjamin Franklin
CO-Owner/Broker