Mortgage opportunity in an economic depression

Fixed rate Mortgage opportunity in an economic depression.

It seems a constant of humanity than when things couldn’t go worse some invariably make a great profit out of the situation. The World Wars were a tremendous boost to American economy, as were the European Wars in the 1800’s. The same pattern has repeated itself in many other countries. During the beginning of the Second World War Germany’s once dying economy was as buoyant as it had ever been. This caused a famous businessman to say “It’s not really a war if someone is not making a profit”. Situations don’t have to be as dramatic as a war for this pattern to occur. Trial lawyers love toxic dumps and medical errors.

Another well heard line is: “When everyone is selling the smart start buying”. This line might be surprisingly among our current house sales and credit crisis. When everyone is trying to get rid of humongous mortgages of houses deep in negative equity it might be the chance of a lifetime for those that can buy. You might say, well yes, that’s obvious but who has the cash to buy a house when we are in the middle of a credit crisis. It is of course true that people with savings can now reap great profits from buying in the present nose-diving Real Estate sector. However it is not only the rich that have a chance. If you have a good credit score you also could buy the house of your dreams at discount price.

Why? The Government efforts to revive our dying economy have caused the administration to lower the interest rates to an all times low. This reduction has caught up with fixed rate loans providing a unique opportunity. If you have the necessary income and have a great credit score 2009 could be your lucky year. Why do we say this? Because of the simple fact that 30 year fixed rate mortgages can now be bought at the all time low rate of 4.8%. This is a FIXED RATE. That means that if you buy a house today with a 30 year fixed rate you will pay 4.8% for the entire tenure of your loan. You could plan your entire 30 years with the same monthly payment for the next 30 years. If inflation continues its current pattern that could mean your mortgage will be so low it will be a joke in 10 years.

The catch. I am afraid that as usual in Real Estate and finance there is always a catch. In order to qualify for a mortgage, not to mention a 30 year fixed rate mortgage you have to have a GREAT credit record and score. Financing fees have also risen making it more expensive to arrange a mortgage. However with a fixed interest rate like 4.8% you would soon get your money back.

Are you in a relatively stable economic situation? Do you have a steady income? Do you have a great credit score? You could qualify for a 30 year 4.8% fixed rate mortgage.