Tuesday, February 17, 2009

Thinking Of Building or Remodeling? Do It Now!

Whether it's to build a new home or renovate the one you currently live in, if you need financing, NOW IS THE TIME! Interest rates are at the lowest levels...ever! Financing can be obtained for interest rates in the mid 4's. That's an unbelievable rate.

Yes, lenders have tightened up their lending standards, but only to back where they used to be. Up until sometime around the mid 1990's, it was almost impossible to find a loan that required less than a 20% down payment. And yes, you do need to have a good credit score, generally one above 700. But that's okay; in order for our economy to pull out of this slump we need responsible homeowners who have some skin in the game. And lenders know that if you have at least 20% of your "skin" in their game, your not likely to default. Homeowners defaulting on loans that they should have never been given is partly what got us into this mess.

So don't be afraid to make the move. If you have good credit and a 20% down payment, you are what the lenders are looking for, and they will lend to you. Principle & interest on a $250,000 home, with 20% down will cost you $1,043.29 per month at 4.75% interest. $2,083.59 for a $500,000 home, and only $4,173.18 for a house that cost $1 million!
Need an equity line to fix up the home your in? A $50,000 loan @ 5.5% interest will only cost you $283.89 a month.

So whether you are thinking of taking the big step and building a home or just fixing up the one you have now, don't wait any longer, these rates may not last.

When you're ready to make your move, call me and I will personally come to your home to go over your project with you step by step. Ready to obtain financing? I recommend Marc Western at Access Mortgage- 208-5222

Kelly Anderson
Ironwood Custom Builders, Inc
Phone 801-416-3131 ext 101
Fax 801-386-5548
Builder Director Salt Lake Home Builders Association
Winner Parade of Homes "Best of Show"

Monday, February 16, 2009

Fix Housing First!

The economy follows the housing market. It's a fact. So instead of giving potential home buyers a $7,500 tax credit (which is actually just a loan that has to be paid back), that no one wants or is even using, the government needs do something that will affect the housing market and in turn pull this economy out of it's slump.

It is also a fact that tax cuts stimulate the economy. It's really simple, if you are a small business owner and your taxes go down, your overhead goes down which means you have more capital, which will allow you to increase your marketing, increase your staff, or even expand. Each of these things lends to the increase of the others, which ultimately leads to more job creation, which leads to more people paying taxes, which leads to the government generating more tax revenue in spite of the tax cuts.

So taking these two things into consideration, we need tax cuts! Capital gains tax cuts so we're not penalized for selling our homes within two years of the initial purchase. Income tax cuts so we have more disposable income. And finally a reduction in interest rates to encourage those who may be sitting on the fence to finally make their move.

So if the current administration wants to REALLY fix this economy, they need to cut our taxes and lower interest rates. Taking the tax credit from $7,500 to $8,000 and the move to make the tax credit an actual credit as opposed to the original loan that it was is a step in the right direction. But we need more. I would encourage you to contact your Representatives and urge them to take the necessary steps to fix housing first. Once people start buying and building homes again, the economy will follow.

Kelly Anderson
2825 East Cottonwood Parkway
Suite 500
Salt Lake City Utah
Builder Director Salt Lake Home Builders Association
Winner arade of Homes "Best of Show"