There has been a lot of speculation on the state of the U.S. real estate market as of late. Buyers, sellers and realtors alike are wondering if we will see a return to the remarkable market that much of the nation enjoyed for the last few years. At this point it is unclear whether or not the market will see the same kind of dynamic action that it enjoyed previously. What is more reasonable to expect is that the market will stabilize and then begin a climb back to prominence. And while that may not be the same kind of prominence that we saw before it will be enough to bring a sense of stability back to a fluctuating market.

There are certain areas of the nation whose markets have stabilized and are recovering faster than others and Texas is one of them. In fact Texas has shown a nice appreciation in home values and in addition it seems to be bucking the trend of homes being sold for less than they are worth. With the slowdown that happened on a national scale we saw a lot of homes being sold for less than their value as a direct result of the market lull. Indeed many areas are showing a turn-around in this trend but few have been as dramatic as Texas where homes are now selling at full price. So, owners that chose to hold on to their properties during the cool down are realizing that now is a good time to sell as the market is once again in a state of growth and expansion in Texas.

One problem that has not quite disappeared quite yet is the sub-prime lending concern. This has lead to almost a record number of foreclosures in the U.S. One the flip side, this has also enabled many to purchase homes at lower than expected values. And while this may not bode well for the former owners it has benefited investors looking for good deals. Another point of hope is the fact that the Federal Reserve Board has not increased the borrowing interest rate for some time after a period where the rate was consistently increased . Leaving the prime lending rate as it is may be good indication that a drop ion the rate could be around the corner so keep your eyes peeled.

Jim Olenbush is a broker and Realtor that is proud to assist home buyers and home sellers with the world of jimolenbush.com” target=”_blank Austin real estate. Jim is a top producer and an expert on the Greater Austin area. For more information on jimolenbush.com” target=”_blank real estate in Greater Austin visit his site at jimolenbush.com jimolenbush.com

Refinancing can provide you with many financial benefits; however, you will want to investigate all your options carefully before leaping into the process. Below are five tips to help you determine when and if refinancing is right for you:

1. Know Your Goal

Before you can make a wise decision, you need to clarify for yourself exactly what you want to accomplish by refinancing. Are you looking to save money monthly or consolidate debt? Are you planning on doing home improvements? Remember that certain mortgage options are better for achieving certain goals.

2. Make Sure the Benefits Outweigh the Costs

Obviously, refinancing is going to cost you some money upfront. You need to ensure that what you are getting from refinancing is worth the costs associated with the process. When refinancing to save money, you will want to make your closing costs back in less than three years. Also, if refinancing to do home improvements, find out if the improvements are going to improve your property value enough to make the work financially valuable.

3. Make Sure You Don’t Have a Prepayment Penalty (PPP)

Before spending money on a refinance loan, double check that your first mortgage does not have a prepayment penalty that could cost you several thousands of dollars on top of the closing costs of your new mortgage. If you do, in fact, have a prepayment penalty, you will most likely want to wait until the PPP term expires.

4. Take the Rate that Fits

Ask yourself one important question before refinancing: how long are you planning on staying in your current home? If you are going to sell your home in two years, it does not benefit you to take the most expensive mortgage, i.e. the thirty-year fixed. Remember, there are many low risk alternatives available to meet almost any objective.

5. The Right to Rescind

You have three days from closing to evaluate your new loan. If you decide that the loan is not desirable, you have the right to cancel it by faxing a simple form to your new lender. Then, you simply resume payments on your existing mortgage.

Refinancing is a tricky process, but keeping these tips in mind should prevent you from making a bad decision.