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.