Stimulus Triggers Inflation
Lock in Current Mortgage Interest Rates

I'm wondering if you know to take advantage of current mortgage interest rates. This article explains how you can protect yourself from inevitable inflation coming sooner then later due to economic stimulus.

Here's what Mark Twain, America's beloved author and humorist said over 100 years ago. And it's still true today.

"Buy land, they're not making it anymore."

Let's bring back the American Dream. Learn how buying a home using current mortgage interest rates is the best antidote against inflation.

Stimulus Spurs Inflation - Buying A First Home

"You better think about buying a home today," encouraged my brother-in-law who was also a real estate agent. "You'll never get another opportunity like this."

My first thought was yeah right! With the market in such a depressed state you are just desperate to make a sale.

That was 1982. He was both right and wrong.

He was right because the little 3 bedroom, 1 bath house I bought in 1982 for $100,000 is now worth $450,000 even at today's recession prices. An increase of almost 400% is a convincing argument.

But he was also wrong. Are you wondering why?

He was wrong because this current economic crisis has created an environment that may never be duplicated in another 100 years.

Here is what I mean.

Do you stay current with the news? Are you reading today's headlines?

Our government is injecting trillions into what will hopefully end the recession and result in a national recovery. The goal of the economic stimulus is to ward off a depression.

Many Americans are asking this question.

Where is the government getting the money to fund a financial recovery?

Money for the economic stimulus comes from you and me in different ways. The federal government has to borrow the money from its citizens by selling debt in the form of US Treasuries and Bonds. In addition local and state governments raise taxes and charge higher fees.

But when the government borrows money by going into debt, inflation is triggered. When state and local governments increase fees such as sales tax, or gas tax, the cost of living rises.

Inflation means that the cost of items we enjoy, use and need every day will become more expensive. Rents which are susceptible to inflation will not get more affordable.

So how do we protect ourselves from what is inevitable? One way is by buying a home and locking in monthly house payments at current mortgage interest rates.

Right now renting may seem cheaper than buying a home but over time rents are going to increase partly because of demand and partly because the dollar is going to be worthless. Because of the sharp increase in mortgage loan foreclosures, landlords are witnessing a demand for rental homes. The decrease in the value of the dollar will come later.

Here in lies a big mistake that many people are going to make.

Thinking short term.

Renting versus buying a home seems like a better deal right now. But if you want to protect yourself and your family from the effects of inflation, you want to start thinking long term instead.

This is the point.

Do you want to make sure your family is protected from the coming inflation? Even better, don't you want to take advantage of it? The best way is by buying a home and securing current mortgage interest rates.

Here is my prediction.

There will never be a better opportunity during your lifetime for buying a home than right now.

Prime Real Estate Articles Tip No.36
Home Mortgage Application | Legal Description

Ever been asked for the legal description of your property?

First if all, a legal description locates and describes your property using government surveys and recorded maps. It protects your ownership from getting confused with similar or nearby land.

When refinancing or buying a home, your mortgage company orders a preliminary title report. Even though the street address appears in the policy, the legal description is responsible to define your property's location and boundaries.

Go ahead and look up the legal description of your home on an annual property tax bill sent by the county.

Next time you refinance your home, take along this printout of the property tax bill to confirm the accurate and legal description of your home. You'll be using the legal description to protect both your house and your investment.

After all, it's your home!

Understanding Mortgage Applications

Take the guided tour with Kate's unique tips for filling out your home mortgage application...

Coborrower | Responsibility | Loan Type | Appraisal | Rates/Terms | Address/Units | Legal Description | Year Built | Purpose | Usage | Construction | Refinance | Title 1 | Title 2 | Fee Simple | Down Payment | Name | SS Number | Phone Number | DOB/Education | Address | Employment | Income | Housing Expense | Assets | Liabilities | Real Estate Schedule | Transaction Details | Declarations | Acknowledgement | Government Monitoring | Application Interview

View FNMA 1003

First Time Home Buyer's Tips

How To Buy A House - Tips On Buying A Home

How To Refi - Tips On Refinancing A Mortgage

How To Get A Mortgage - Home Mortgage Help

Roadmap At Prime Real Estate Articles

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