Follow us for the latest in Indianapolis real estate news and updates. Mortgage Update Using the market to save you money I am hoping to put a common con- ception to rest. Newspapers make their money telling “scary” stories, but not giving a total three hundred sixty perspective of every event. That is the exact case when it comes to today’s mortgage markets. The fact that there are more than enough foreclosures, short sales, and failing banks, sells papers. To tell how this can all work for you fails to glean headlines, I’m hoping to shed a little light on that today. Today (week of 11/28/11) a con- forming 30 year fixed rate (on aver- age) with no points and average closing cost of $2,000 +/- is 4% (APR = 4.087%). Now that, based on today’s dollar, is the lowest in the history of recorded interest rates. Rates were being recorded since May of 1975, and the all time low is today. Now, when you couple that data with the fact (sorry to say, it’s a fact) that home prices have slipped about 15% over the past three years, you get the “other side of the story”. I was taught, buy low, sell high. Never has there been a time like that today. You can buy a home that was $400,000 in 2008 for about $350,000 (in some, not all cases) and attach a 30 year fixed at 4% (assuming 20% down-payment) and you have a monthly Principal & In- terest payment = $1,337. Compare that to 2008 when the average inter- est rate was 6.625% (still a WOW rate on a historical level) and you could have only purchased a home = $260,000. Therefore, in this ex- ample, you get 35% MORE home for the same monthly payment. That is the absolute definition of “buying low”. Tune in next time when I discuss the myth: “It’s difficult to qualify for a mortgage”. Written by: Bill Clouse NMLS# 49837 W. R. Clouse & Associates Mortgage Company, A Division of SCB Bank 3091 E 98th St, Suite 280 Indianapolis, IN 46280 (317) 571-7800 FAX (317) 571-7810 December 2011 Be prepared before the snow and ice come: Buy shovels, rock salt, sand and extra food before winter. Buy a fire extinguisher, or make sure your existing one is in good working order. De-ice walking and driving surfaces. Make basic repairs to your exterior, including shutters and siding Insulate pipes, caulk windows and weather- strip doors.