“The significant problems you face today cannot be solved at the same level of thinking you were at when you created them.” Albert Einstein

The housing market has definitely caused significant problems for some people but is also providing some amazing opportunities for others. Agents aren’t like retailers who wake up one day realizing they have the wrong merchandise on the shelves.

Everyone needs a place to live and whether you rent or buy, you pay for the house you occupy. While the home for sale remains the same, the methods that produce results have to change.

Listing agents are diametrically opposed to the objectives of buyer’s agents. This is not to say that there cannot be a win-win situation but each agent is trying to negotiate the best price and best terms for their client.

Financing can make listings more marketable and structure a transaction to provide the buyer with the cheapest cost of housing. Personal experience is a great teacher but a very expensive way to learn. An expert, like a Residential Finance Consultant can provide information and tools to make better decisions to be able to profit in the current market.

If you had a 3.5% mortgage on your current home and were buying another home, transferring your low interest rate mortgage would be ideal. Unfortunately, lenders don’t allow that.

When buying a home today, it would be smart to think about selling it in the future. To have a good home with unique features makes it marketable. To have attractive financing that could be assumed would add to the salability.

Consider getting a FHA or VA loan to purchase your home. The present advantages are that these loans are priced competitively and a little easier to qualify for than conventional loans. The future advantage is that FHA and VA loans are assumable at the original note rate for qualifying buyers.

There’s more to sell than the home itself when you have an assumable loan. The mortgage payment could lower the cost of housing significantly. A buyer may easily be willing to pay more for the home due to the attractive financing, especially if it helps their equity grow faster.

It is the mantra of people who missed a great deal. It’s the theme song of the procrastinator. It’s the refrain that reminds us of the one that got away.

Some people are still beating themselves up because they didn’t recognize the housing bubble was really going to burst. It is impossible to change the past but will they see the signs of the next housing trend?

In the past four years, prices have adjusted with 30% corrections nationally and much more in areas with high percentages of foreclosures. New homes are almost non-existent. Interest rates are slightly above record lows. Consumer goods are skyrocketing; our budget deficit and national debt are staggering and escalating inflation appears certain.

“Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.” states Shawn Tully, Senior Editor at-Large for Fortune magazine in a March 28, 2011 article.

“If I would have known that this was the best buyer’s market ever, I could have taken advantage of the prices and interest rates; I should have fixed my cost of housing for years to come.” Don’t catch yourself saying this. You owe it to yourself and your family to get firsthand information to see what your options really are.

It’s obviously going to be a Herculean task for Congress to balance the budget and reduce the deficit. It’s sort of like the country song lyric that goes “everyone wants to go to Heaven but nobody wants to go now.” It is estimated that the mortgage interest deduction cost the government $100 Billion last year which is why it is a target for cuts.

The Mortgage Interest Deduction has been part of Income Tax laws in this country since 1913. The United States of America is one of the few countries in the world that allow such a deduction. Our goverment has always supported homeownership as is evidenced in the different tax benefits it receives.

• Mortgage interest deuction up to $1,000,000 in acquisition debt on a principal residence and second home
  
• Deduction of interest on Home Equity debt of $100,000 over acquisition debt used for any purpose
  
• Capital gain exclusion on up to $500,000 for married couples filing jointly and $250,000 for single homeowners
  
• Favorable long-term capital gain rates if gain exceeds exclusion limits
  
• Property tax deduction

There are homeowners that would like to have a larger/nicer home but are patiently waiting for the market to improve. A frequently heard objection is that they can’t sell their home for what it is currently worth.

Buying up in a down market is actually advantageous because while you might get less for the home you’re selling, you’re also getting the larger home for less. For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table. However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you’re waiting for the market to improve, it dramatically increases your cost of housing with higher payments. The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision.

Today’s toilets use less water, prevent staining and resist clogging better than the older toilets and you might be surprised at how easy they are to install. Replacements generally cost from $100 to $300.

Toilets made in the 1950′s used, on average, seven gallons per flush. Compare that with one that only uses 1.6 gallons per flush and it’s a big saving. Multiply by the times a toilet is flushed in a year and the number of toilets in your home and it will save a lot of water.

Gallons of Water Saved in a Year with 1.6 gpf
Age of Toilet Gallons Per Flush Flush 3 times a day Flush 5 times a day
Prior to 1950′s 7.0 5,913 9,855
1960′s 5.5 4,271 7,118
1980′s 3.5 2,081 3,468
After 1994 1.6 – -

Watch this video to see how easy the project is done and even if you decide to hire a plumber, you’ll have a better understanding of how it works.

Fixed Rate mortgages are at their lowest level for 2011 as reported in the current Freddie Mac weekly Primary Mortgage Market Survey. Many qualified buyers missed the opportunity last fall in October and November to refinance at record low rates. This may give homeowners one more chance to refinance and save money on their payments.

An important thing to keep in mind is that points paid in connection for refinancing a home are generally not considered prepaid interest and must be spread over the life of the mortgage. Some advisors suggest that you have the lender quote a “par value” loan to eliminate the points which will lower refinancing costs even though the mortgage rate will be slightly higher.

Additional income tax information is available in IRS Publication 936.

Home prices have come down 20, 30, 40% or more in the last three years and mortgage rates are lower than they’ve been in 50 years and you still haven’t bought a home.  Really?

Housing affordability is over 180, an all-time high when 100 is considered good and you’re still renting.  Really?  Are you waiting for it to get  to 200?  Do you think prices and rates are going to get lower?  Really? 

You know it’s costing you more every month to rent than to own.  Tax savings, appreciation and principal reduction lower the monthly cost of housing and yet you’d rather let your landlord benefit…Really?  Have you heard that the average homeowner has 41 times greater net worth than a renter?  Do you think it’s a coincidence?  Really?

And have you heard that most people want a place of their own; a place to raise their family; to share with their friends; to feel safe and secure.  So, you’d rather go home after working hard all day to your landlord’s home.  You’d prefer to invite some friends over to your landlord’s home for dinner next weekend.  Really?

You haven’t checked out whether you can actually take advantage of the best buyer’s market ever.  You haven’t invested thirty minutes to find out the facts as they apply to you and your situation.  Really?  You’re basing a decision on national news, chat rooms and Facebook.  Really?

Every market is different.  Every buyer is unique.  If you want a home; if you have a down payment; if you have good credit, you owe it to yourself and your family to explore the possibilities…but with a real estate professional; someone who can really show you the reasons and really give you options.

In many cases, the seller and the buyer are actually represented by their real estate agent.  In those situations, there is a fiduciary relationship created that requires the agent put the client’s interests above their own.

There is generally no such relationship between buyers and lenders.  Some of the housing crisis issues may have been avoided had the lenders been more concerned for the buyer’s best interests.

The following are a few warning signs that should cause a buyer to do much closer investigation:

1. Claims that bad credit is not an issue
   
2. Prepayment penalty
   
3. Larger than normal loan charges
   
4. Rate gouging by brokers – yield-spread premium
   
5. Loans without escrow accounts for taxes and insurance
   
6. ARM loans that only go up and not down
   
7. Initial loan to secure property with plan to replace it later

As a real estate professional, I can recommend a lender who is experienced in your market and has a history of providing good service.  A real estate professional can be a good intermediary between you and the lender.