Mortgage activity for the month of January usually starts slow, however with the recent dip in mortgage interest rates my days are being filled with more and more purchase pre-approval applications; that means more people are looking to buy earlier than expected. That normally doesn’t start to happen until after the Super Bowl, but I think consumers are realizing it has offically switched to a buyer’s market with the perk of lower rates. I am also seeing more deals with ‘Seller Assistance’ negotiated into the sales contract, evidence further that the buyers are gaining more leverage in the market. Twelve to eighteen months ago Seller Assistance was not seen much. Finally, another reason for the spike in purchases is the mortgage products are getting more flexible. For example, a First Time Home Buyer (FTHB) can buy a $200,000 house, put Zero Down and get a rate of 6.375% and only use $500.00 of their own funds.

The mortgage program ‘Helping Those Who Serve’ ends on March 31st. This program allows 4% Seller Assistatnce with Zero Down, as well as a reduced mortgage insurance rate (see the related post on this site). What does all this mean…it means savings in the short term and savings in the long term as well. Call Dan McCormac of Prosperity Mortgage 717-581-2476 to see if you qualify.

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