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Missouri Mortgage Loans

With many Missourians considering the state of the economy, they understandably have questions about the future of their mortgage loans, as well as their availability to other residents of the state. There has been so much negativity being broadcast by the news outlets that it can sometime be difficult to see the bright silver lining in the real estate sector. I personally don’t see what all the pessimism is all about, there couldn’t be a better time to enter the realm of homeownership then there is currently. Low interest rates on mortgage loans combined with slow housing sales - many Missourians couldn’t be offered a better deal unless you gave it to them.

Consider this for a minute: the Federal Government is now giving every first time home buyer an eight thousand dollar tax credit for purchasing a new primary residence. With FHA mortgage loans having interest rates currently at around five percent on a thirty year fixed rate loan and the median home prices in Missouri at around ninety thousand, this would make the monthly payments on the home around $465.00 a month. That means the tax credit equals roughly seventeen months worth of payments. Average rental prices on a two bedroom apartment are around eight hundred fifty a month, that’s not only around a four hundred dollar a month savings on monthly housing expenses, but it gives the first time buyer a chance to start building a nest egg for the future. Who in their right mind wouldn’t consider a chance to save money on expenses and build wealth for the future a fabulous opportunity in the housing market?

Far too many potential first time home buyers don’t think they can qualify for mortgage loans because they feel as if their credit scores are not high enough. Maybe they have made a couple of late payments on a car loan or a credit card payment. Mortgage providers understand that first time home buyer can’t possibly have absolutely perfect credit and for that matter so do credit reporting agencies. Which is why the companies that keep track of consumer credit have recently changed the statistical system they use to determine an individual’s Consumer Credit Rating. The new system is much more forgiving of minor blemishes to a consumer’s credit rating then the old system was, meaning countless consumers that were denied last year while trying to get into homeownership will be surprised to find that they qualify today.

First time home buyers are perfectly placed to take advantage of the current real estate market. With historic lows on interest rates for mortgage loans, they just need to get out there and find their dream home before it’s too late. The current tax credit will only last through 2009 and as housing sales go up this year so will home values and interest rates, so first time home buyer’s need to get moving before this opportunity fades.