Dan's Bucks County Real Estate Blog

Mortgage interest rates have been dropping all month. In last week's Philadelphia Inquirer, some companies and banks were advertising 30-year fixed-rate mortgages at 5.1 percent. Now, not all banks and mortgage companies are offering that kind of rate, but some are. And with the Federal Reserve cutting key interest rates on Wednesday, mortgage rates could go under 5 percent for the first time in quite a while. If you have a mortgage that is above 6 percent, it might be worthwhile to think about refinancing. In the long run, it could save you a lot of money every month, so keep an eye on those rates. If you have questions, give your mortgage lender a call and find out what their rates are and what kind of fees they charge for refinancing. And remember, it pays to shop around to get the best deal.

Everyone knows the real estate market is going through a tough time right now. But not everyone is feeling the pinch. As a matter of fact, the Philadelphia Inquirer just published a story today about one segment of the market that is capitalizing on those conditions: first time home buyers. The article points out that with a ton of homes on the market and mortgage rates hovering at or below 6 percent, this is actually a great time to buy a home. First-time buyers don't have to sell a house to purchase another, so they are sitting pretty as far as purchasing goes. But anyone who does not have to sell another home to make a purchase is in much the same shape. Mortgage companies and banks are still lending money, though the requirements for loans as far as documenting income and credit risk have tightened. But the deals are out there, especially for the buyer who doesn't have to unload a home to buy the next one.