3rd Mar, 2011

Unparalleled Time to Mortgage Fredericksburg TX Real Estate

The cost of purchasing Fredericksburg Texas real estate today is as good as it gets.  In 2011, the ducks line up to benefit homebuyers searching for Hill Country real estate, a piece of Texas land, or a family home in Fredericksburg.  About 75 miles west of Austin and north of San Antonio, Fredericksburg is home to 10,000 residents and offers excellent schools and medical facilities.

Downtown Fredericksburg real estate reflects its German heritage.  Tops for hospitality, it offers tourists the best B&B establishments, restaurants, live theater, galleries, wineries, museums, and events.  Fredericksburg homes are in the heart of Texas Hill Country.  Nearby are Enchanted Rock State Park, Guadalupe and Pedernales rivers, and other beautiful destinations for hiking, bike riding, touring, golfing, and relaxing.

This year offers purchasers unparalleled low costs, along with the low prices of real estate.  For a couple of good reasons, buyers who act now will save.

  1. Prices are right.  Hill Country property values are holding their own in the tenuous USA real estate market.
  2. The cost of financing is low.  Interest rates remain historically low and buyers of 30-year fixed mortgages are able to lock in low rates over 30 years.  In the future, buyers may not be able to lock in rates for such a long time.

Costs are on the rise.  On February 11, 2011, the Administration submitted a report to congress entitled, “Reforming America’s Housing Finance Market.”  This document recommends that government agencies scale back over time their involvement in the home-loan industry.  In the short term, the Administration recommends a $100,000 reduction in government-backed loan limits for large loans.  In 2008, limits for government-backed loans rose to $729,750 from $625,500.  That grace is in effect until September 30, 2011.  Government-backed loans feature lower interest rates.

Other imminent changes will probably include higher down payments, higher fees, and higher interest rates as the government reduces its footprint in the mortgage industry.  The report recommends that the private sector take back more of the home loan business, although the government plans to stay involved with first-time buyers and lower income families.

The private sector cannot do business without charging interest.  We notice that the government comes under the same restraint, as taxpayers donated $13 Billion to salvage Fannie Mae and Freddie Mac.  Fannie and Freddie have been keeping all interest rates down by rolling mortgages into securities and the government selling treasury notes and bonds.  That must come to an end—but best a happy end with buyers finding a dream property in time to catch the low rates.

For expert guidance in your personal search for the ultimate piece of the Hill Country, please call Dale E. Cook, MBA and owner of SAGE- Premium Texas Real Estate at (830) 992-0056.

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