Lenders and
economists say
buying a house
has rarely been easier or
more affordable than now.
A
PHOTOS BY DANI EL L IPPITT
JULIE EDGAR STAFF WRITER
"Obviously, with interest rates
4 ,71 here's no sweeter retiring and downsizing," Mr.
lower, more and more people can
114 time to buy a house, Gilbert says.
Aside from alluringly low in- participate in purch_asing and
but the whats and
hows of doing it can terest rates and new avenues for prices will stay high. Sellers are
sour people on the avoiding burdensome down pay- getting the highest amount for
ments, the budgetary impasse in their homes today. It's a seller's
prospect.
Getting through Washington has also led many market," says Marilyn Megdell
the maze is the sub- more people to buy. Mainly, it's of Ralph Manuel.
Michael Katz of Century 21
ject of a free seminar out of fear that rates could be
on Tuesday, Feb. 13, pushed back up if pessimism Country Hills says homeowners
at the Jewish Com- deepens over the failure of Con- are likelier now to renovate and
munity Center-Jim- gress to adopt a budget, Mr. improve rather than move. That
means homes in the mid-price
my Prentis Morris Building in Gilbert says.
"It could be a smaller window range are harder to find, and
Oak Park. Neighborhood Project,
a program of the Jewish Federa- of opportunity than we think it's when they do go on the market,
they sell quickly.
tion of Metropolitan Detroit, is going to be," he says.
"It requires you to go for dif-
William Wilson, a vice presi-
co-sponsoring the seminar with
Rock Financial, the state's largest dent and economist at Comerica ferent sectors of the market," he
Bank, calls it a "great time" to says. "I don't think there are a
home-mortgage bank.
The 10-year-old Neighborhood buy or refinance. But he thinks great number of great properties
Project offers interest-free loans long-term interest rates will con- on the market."
And yet, Mr. Katz is constant-
of up to $10,000 to buy homes in tinue to fall "easily another half
areas of Southfield and Oak percent," by the end of the year. ly on the move. He's noticed that
Park. It has enabled over 830 Homeowners looking to refinance the resurgent automotive indus-
families to buy homes since its their mortgages might want to try has brought a flood of trans-
plants to the metro
wait a bit, he says.
inception.
"There's increasing Left: Gary Gilbert of Rock area.
Among other topics, Rock Fi-
Besides an econom-
nancial representatives will talk evidence the U.S. econ- Financial: Mortgage loans
about applying and qualifying for omy is slowing. And in- have skyrocketed in the ic climate that is mak-
ing it possible to
a mortgage, choosing a lender flationary pressures past year.
purchase or refinance,
and real-estate agent and un- continue to fall. That
derstanding a credit application. means a trend for long- Bottom Left: Harry J. there's a variety of
Past programs have attracted term mortgage rates to Glanz of Capital Mort- lending scenarios that
overflow crowds, so pre-registra- decline for the next gage: It's easier to apply also make it much
for a mortgage nowadays. easier to get into a
tion is recommended. The sem- year and a half."
new home.
Interest rates on a
inar comes at a time when
Harry J. Glanz, executive vice
long-term interest rates are at mortgage loan are fixed or vari-
a 20-year low, inflation is almost able. While the minimum vari- president of Capital Mortgage in
nonexistent and financing able rate is around 6 percent and Southfield and a board member
schemes allow the prospective the fixed rate is about 7 percent, of Neighborhood Project, says
buyer to put as little as 3 percent it is smarter to go with the fixed FNMA (Federal National Mort-
rate when buying or refinancing gage Association) and another
down.
quasi-governmental agency
"It's a wonderful program be- a home, Mr. Wilson says.
"For homeowners who have a known as FHLMC - (Federal
cause it walks you through the
steps of what you need to do to variable interest rate, they may Home Loan Mortgage Corp.) —
purchase a home. It's free and want to contemplate a fixed rate. respectively known as "Fannie
open to the community," says In five years, (variable rates) Mae" and "Freddy Mac" in bank-
ing parlance — have helped the
Neighborhood Project Director could go way up," he continued.
Mr. Wilson points out that the low- to middle-income person af-
Marion Freedman.
Gary Gilbert, executive vice huge number of homeowners re- ford to buy a new home.
"What has happened is that
president of Rock Financial, financing their mortgages has
says business is up 400 percent bolstered the economy, because with home prices rising, Fannie
from last year. Last month, money saved in monthly pay- Mae, Freddy Mac and HUD have
the company closed nearly. ments frees up dollars for other had to look at alternative lend-
ing methods to make funds more
$225 million worth of transac- t purchases, like cars.
But low-interest rates also accessible to people who can han-
tions in Michigan, Ohio and Illi-
make it more difficult to find a dle a monthly payment but don't
nois.
"We're seeing a lot of move-up house in the mid-price ($150,000- have a lot of money to put down.
"For example, it used to be you
buyers, plenty of first-time home $200,000) range, according to two
A LOT IN LIFE page 38
buyers and many people who are associate real-estate brokers.