Comments on: 5 things home buyers should be doing in this market

By: Miranda

Miranda — Mon, 20 Oct 2008 19:32:37 +0000

Thanks for the great, practical advice! With lending standards tightening, it is important to realize that you will have to do a little bit more now. And I like the advice on limiting exposure to risk.

Another thing to keep in mind that right now homes should be bought for living in, and thought of more as a purchase — with the possibility of a long-term investment benefit. Note, though, that mortgage rates are more tied to T-bonds than to the Fed funds rate, so further rate cuts, like BlueCollarDollar points out, are not likely to really bring mortgage rates down too much.

By: BlueCollarDollar.com

BlueCollarDollar.com — Mon, 20 Oct 2008 17:14:34 +0000

Yes Matt, the Fed can cut rates all the way to zero – but they won’t. As long as oil is dropping in price, most of the inflationary pressure is off – for the time being.

As to the mortgage rates, the recent 6.5% is and will be considered low from this point forward. Unless of course you want to buy down the points!

And finally, there is your credit: http://bluecollardollar.com/FICO-creditscores-debthistory-101208.html

By: Matt

Matt — Mon, 20 Oct 2008 17:07:01 +0000

Let me know if you get a deal like that, I’ll refinance!

By: bob

bob — Mon, 20 Oct 2008 16:37:37 +0000

Matt,
that is what I am hoping for! That would be a nice change of pace!

By: Matt

Matt — Mon, 20 Oct 2008 12:44:21 +0000

Can the fed make many more rate cuts? Will you be able to get a mortgage where the banks pay you interest for having it?