Real Estate

The tides of the real estate market are turning, and they are turning in the alarming direction. With all the houses being built, we are a on the fore-front of this unpredictable market. So what has changed in the real estate market in 2006, compared to 2003-2004. And what are the experts saying about this. Interest rates are at an all-time high, and are not going down compared to 2003-2004. Bankruptcy laws changed in 2005. Creditors are making it harder to get loans. Credit is getting tighter which means a lot of people can’t buy a home anymore because they can’t qualify for it. The capital gains tax will increase and many people have seen their homes increase in value 50%-300%. The capital gains tax provisions that now allows you only to pay 15% on any capital gain will revert to 20% after the year 2008. Mortgages have converted from interest-only to principal and interest. So with all these changes how can you keep yourself with the upper hand on these new provisions. Financial Guru Suzie Orman says that “ if you… Have a home equity line of credit, Have an adjustable rate mortgage, Have an adjustable interest-only mortgage and you plan to keep your property then refinance now and lock in a fixed rate mortgage. She also say’s “if you have a home equity line of credit.” “There are some financial institutions that will allow you to lock in the interest rate today on the equity line of credit that you have already used. Call your bank and see if they will allow you to do that. Also It’s a far better way to go than refinancing and getting a fixed rate mortgage.”

With Let’s start with interest rates and Bankruptcy laws. The best way to be to have an advantage on these rising rates is to be informed about your credit score. The Fair and Accurate Credit Transaction laws where reformed in 2003 since the Fair Credit Act was passed in 1996. The Fair and Accurate Credit Transactions Act ensures that all citizens are treated fairly when they apply for a mortgage or any other form of credit. FACT Act also entitles all consumers to a free annual credit report to verify it is accurate. If you are considering a loan or mortgage in the near future get your free credit report first. These new laws give you the advantages to borrow money. You can view your credit report to see if the are errors and also access the possibility for borrowing money. Your credit report should contain accurate and up-to-date information about your credit history and behavior. You