For a long time, interest rates have been at its historical low. Interest rates as low as 4% for 15-year notes and lower than 4.5% for 30-year notes. It had made it a terrific environment for home buyers who are benefitting from low and attractive home sale prices, the low interest rates (long-term commitment to lower monthly payments) as well as the home buyer tax credits offered to first time home buyers as well as repeat buyers who qualify.

So are you planning to participate in this opportunistic home buying environment? Are you financially and emotionally ready for homeownership?

One thing you should be aware of is the interest rates. It is projected that interest rates "may" hike after end of March 2010 because the mortgage-backed security (MBS) is set to expire then.

How does that affect you as a home buyer who plans on getting a home mortgage on the purchase?

• Zero Down Payment and Zero Closing Cost Affordability based loan program
  Better yet, no perfect credit is needed. It is an affordability-based loan program. Sounds too good to be true? Do not qualify it first. Find out if this loan program truly fits your housing needs.
  
  
• Frisco TX Down Payment & Closing Costs Assistance Programs
  The city of Frisco offers 2 housing initiatives to bring more residents to call Frisco TX home. One program assists anyone who want to live within the city of Frisco limits while the other is offered specifically for Frisco ISD and City of Frisco employees. There are some qualifications for the program. Find out what they are.
• New Good Faith Estimate Effective January 1 2010
  There is now a standardized format for Good Faith Estimates required by HUD/ Respa effective January 1 2010. Read the summary and explanations of what to expect with this new ruling.
  
• Should Buyers Decide Where to Close?
  More often than not, here in North Texas, Sellers decide where to close on the real estate transaction. However, when Sellers would be in violation of HUD RESPA Section 9 ruling that states that the Seller is not to require the Buyer to use a particular title company as a condition of the sale.
  
• What Every Seller Needs to know about Selling Their Homes in a Time Such as This
  Many industry changes that can affect the sale of your home. Understanding how it could affect you is essential to a happy closing in the end.
  
• What Every Buyer Needs to know about Buying Real Estate in These Times
  Home purchase in these times are unlike any other times. Both positives and industry changes affect how we used to buy real estate. Understanding the "new" home process can save alot of heart aches in the end.
  
• Can You Buy a Home on a Work Visa?
  This article clarifies what it constitutes for non-immigrant work visa status employees can expect when purchasing their homes. Yes, they are also qualified to receive the first time home buyer $8,000 federal housing tax credit.
  
• FAQs of Frisco Texas First Time Home Buyer $8,000 Tax Credit
  Commonly asked questions about the First Time Home Buyer $8,000 Federal Housing Tax Credit. Find out more about how this incentives work. 

Continue from above ...

How does that affect you as a home buyer who plans on getting a home mortgage on the purchase?

A mortgage-backed security is an asset-backed security (typically residential properties) that the mortgages are guaranteed by a government agency for principal payment and guarantee of timely payments. Typically, guarantees of these MBSes are Ginnie Mae, Fannie Mae and Freddie Mac. These federal programs help provide support to the mortgage and housing industries to keep interest rates low and affordable for everyone.

$1.25 trillion is set to expire by the end of March which has been credited with keeping mortgage interest rates at new historical lows. According to projections, the 30-year fixed rate mortgages may rise from an average of 4.9% to 6.1% at the end of March, then to 6.3% by the end of 2011 and 6.6% by the end of 2010. Again, these are just projections. So, don't panic if you haven't locked in your interest rates just yet.

The good news is that we have some history to say that if the interest rates hiked too much and creates a market discomfort, the Federal Government would then re-consider their purchases. But if recovery is on its way, the Fed may begin to seize purchasing these MBS.

There is no free lunch. In some of these mortgage products, there are some changes to the loan guidelines that will result in costing the borrower more in obtaining the loan. In the Open Market Committee meeting, 12 out of 15 members plan to extend the MBS purchase in mid-December. The minutes of mid-January is not published yet and there is one more meeting coming up before the MBS is officially set to expire.

Stay tune on more mortgage updates about these MBS that are set to expire.

Real Estate is Local. It varies from cities to cities, areas to areas and communities to communities. Furthermore, it varies price ranges within the neighborhood too.

Just like weather forecast is local. Here in Frisco Texas, you would not watch the weather forecast in New York or Atlanta to determine how your day would be.

Find out more about how your community or your area within your price range does. We are here to provide you the most accurate information because we believe information is power in negotiation of real estate transactions.

• Frisco TX Homes for Sale - November 2009 Housing Market Report
  The November 2009 numbers turned out 20% significantly better than the November 2008 numbers. It also took less time for these properties to get under contract. The biggest improvement was felt in the mid-tier pricing (between $400-$700,000). More properties SOLD or went under contract in November compared to any other times this year. The next largest improvement was in the starter-properties (less than $300K). The Frisco TX luxury homes (over $700K) saw little to no improvements overall.
  
• Plano TX Homes for Sale - November 2009 Housing Sales Report
  November 2009 numbers outperformed 45% better than November 2008. However, for the year (2009), Plano TX sold 3,571 homes while in 2008, it sold 4,021 by this time of the year. In all price brackets, there were improvements in the number of homes sold, especially less than $400,000. The price per square feet was reduced, but the homes did not stay on the market as long.
• McKinney TX Homes for Sale - November 2009 Homes Sales Report
  November 2009 shown an almost 30% improvement when compared to the same time last year (2008). Not only did the number of transactions increased, those that sold, sold for more price per square feet and they took less time to sell. Year-to-Date, 2,145 homes sold in McKinney TX when compared to 2,107 homes in 2008.
  
• Allen TX Homes for Sale - November 2009 Homes Sales Report
  Allen TX reported 77 home sales for the month of November 2009. These numbers include single-family homes, condos, duplexes and townhomes. Year-To-Date, Allen TX sold 1,221 homes and in 2008, Allex TX sold 1,393. For the year, Allen TX is down 12% from the previous year.