Further declines in home prices expected

With housing prices and interest rates down, many people are wondering if now is a good time to be a first-time home buyer or upgrade to a "better" home. The tax advantages are certainly one reason to consider purchasing now.

Looking at the housing market, First American CoreLogic and its LoanPerformance Home Price Index states that further declines in home prices, driven by distressed sales, are expected in the early months of 2010. This will be followed by a recovery this spring, but that is now projected to be much smaller and to occur later than previous forecasts stated.

If your're thinking of upgrading, be sure to factor in the fact that your house, along with most others, has also declined in value. Though you might get a "great deal" on the one you want to purchase, the person buying yours is probably also getting a "great deal" as well.


Besides the cost of the house, the mortgage interest rate is another factor to consider. According to a recent Freddie Mac Primary Mortgage Market Survey, the rates are currently around 5%. These rates are quite inviting. Just to provide a comparison, during the inflationary times in the 70's, mortgage rates were in the low teens. It wasn't unusual for people to pay 13%!

This could be the right time for your to make your move. Consider all the issues - tax incentives, interest rate and the declining values in the housing market. Talk to a trusted mortgage professional; they will help you sort through all the issues and guide you on this major financial decision.

Mortgages and helping others - it all ties together

We've all heard the saying, people buy from people. This is true, whether it's a product, service or a mortgage. We want to know the person we're dealing with. This develops a trust level that a company logo can't begin to create.

Therefore, along with mortgage knowledge, I will also share some of my personal life - topics that will help you get to know me. Yes, partly because (hopefully) you'll know me well enough to trust me with your next mortgage, and then I can get to know you as well. But also because my other life, outside of the business world, might also serve you through areas of interest or of assistance for you or someone you know.

In December I introduced you to Anna's House. A Community Service Center in Indianapolis, Anna's House was created to serve people in need. Lucious Newsom and Anna Molloy worked together for years to inspire people to care for the hungry and the needy. In this 2005 photo, Lucious, right, and Anna, second from right, pose during the groundbreaking ceremony for Anna’s House. Charlie Caito, left, and Leo Stenz, two loyal supporters of Anna’s House, participated in the groundbreaking ceremony. (Photo Source: The Criterion Online Edition)

One of the reasons I feel called to Anna's House is that our daughter has skeletal dysplasia, as Anna did. A different type of dysplasia that Anna had but in the same family of dwarfism. We have created a CaringBridge website and wanted to share this great organization. CaringBridge is a free, nonprofit web service that connects family and friends to share information, love and support during a serious health event, care and recovery. This site has been very helpful for us, as we keep friends and family up to date; their comments in the journal are a great source of comfort for us.

Cream of the crop

According to a recent article in National Mortgage News, it would seem that "no one in his right mind would choose" to be in the mortgage business. They back this statement up by citing the upheaval that the mortgage industry, as a whole, has experienced.

We have all read and heard about some selling loans to consumers who cannot afford them, charging excessive fees, being scrutinized by the government and many loan companies going out of business.

Many mortgage brokers (or should I say "former" brokers) have moved on to other fields of interest. So, what does this say? We here at Grandview Lending believe this is a good thing. Most still in business today are those who are ethical, commited to serving their clients and have a passion for helping people own their piece of the American Dream.

The National Mortgage News article also stated that those who are "... left standing today are believed to be the cream of the crop — experienced, motivated and highly professional." I totally agree!

The ups and downs of the decade

Most of us have experienced the effects of the current economy or at least know someone who has. But the National Mortgage News has some great statistics that I'd like to share with you. Owning a home is the American Dream, and you'll be happy to learn that your investment has been a wise one.

According to the National Association of Realtors, existing home prices increased by 25% from 1999 - 2009. The latest forecast by NAR economists shows that the median house price will rise 3.6% in 2010. Existing home sales are predicted to rise 10.8% this year.

Though it was certainly a decade of ups and downs, 2010 is starting out on a very positive note. Whether you're looking to move or remain in your current home, the economic forecast indicates that owning a home is still a good, solid investment. While the interest rates remain extremely low, now is a good time to have a discussion with a reputable mortgage company. They will help you put the pieces of your financial puzzle together.

The time for resolutions

As 2009 makes its exit, and 2010 knocks at the door, people throughout the world are creating their New Year's Resolutions. But all too often, these resolutions fall by the wayside all to quickly.

Rather than make New Year's Resolutions, we at Grandview Lending have every day resolutions. We live by them, conduct business by them and I'd like to share them with you now:

• We listen to our customers.
• We promise to communicate about your specific needs.
• We educate so you can make the best possible decision for you and your family.
• We deliver the most competitive loan programs available.
• We make it our strict policy to make sure every customer is completely satisfied.
• We strive to earn your business for life.

Happy New Year!