During the past month interest rates remained at low levels compared with the rates seen during the past several years. While no one can say with certainty where rates will go in the future, for the moment at least there are three good signs:

First, the federal government and many state governments have achieved impressive surpluses. Second, the Federal Reserve has dropped interest rates and may do so again. And third, given the performance on Wall Street during the past year, some money which may have gone into stocks is now being invested in bonds. This is regarded as good news for borrowers since investors often compare mortgage rates with returns from 10-year bonds.

More Than Buying And Selling

How often can you use the services of a real estate broker?

Many people only call their broker when buying or selling a home, but there are other times when a broker can be a useful source of advice.

For instance, are you planning a major remodeling job, something that will make your home bigger and better? There's a lot of money involved in such projects, so you might want to ask whether it's better to improve your property or move-up to another.

Why ask such a question? Suppose you improve your home and later wish to sell. Suppose also that your newly-expanded home is now the largest in the area. Since many buyers follow the general rule estate rule of buying the least expensive home in the most expensive neighborhood they can afford, an over-improved house may take longer to market and it may not be possible to get back those improvement dollars.

There are situations where it may actually be cheaper -- and better -- to obtain a replacement home rather than improve an existing structure. For instance, suppose you have a home with three bedrooms and wish to add two more. That may work, but then what about the need for additional baths, a larger heating and air-conditioning system, a bigger kitchen, and the other features a home with five bedrooms should offer?

It may be that cost is not the first consideration. If you expect to stay in your home for many years and want to have a big addition, then personal preferences may come before costs. In such situations, however, it still make sense to consider future marketability just in case plans change.

So when you're considering that big remodeling job, give me a call and we'll run some numbers.

Housing Market Remains Strong

While Wall Street continues to be buffeted by ups and downs, the housing market nationwide is doing well.

Preliminary figures from the National Association of Home Builders show that in 2000 the price of an average new home was $205,700, up nearly $10,000 from the year before. At the same time, existing homes had an average price of $177,000 in 2000 and more than 5 million existing properties were sold during the year, according to the National Association of Realtors.

Such national figures, of course, may not reflect local trends. I have details regarding our market, and can review local pricing and sales figures at your convenience.

What If The Lender Says "No"

Despite computers and the Internet, getting a mortgage is not a sure thing. It is possible to apply for a loan and get turned down.

What to do?

Before looking for a new home get pre-approved. By being pre-approved you'll have a good idea of what's affordable and what isn't.

Be aware that there are hundreds of loan programs out there, maybe thousands. While one mortgage plan may not work for you, another might.