An interesting, and most pleasant, situation is taking place in real estate
right now. Interest rates are down to their lowest levels in many years.

If you presently own a home, and plan to stay there, you may be able to
benefit from lower rates by refinancing your existing home mortgage. For
example, if you have a 12% mortgage, and refinance at 9%, you could save
three percent, or about $22.40 per month for every ten thousand dollars
owed.

There are costs involved in refinancing which should be carefully considered
before taking action. These costs include legal fees, possible discount
points, loan initiation fees, and other "closing" costs related to a new
loan. Be sure that the benefit you receive from lower payments offsets the
added expense.

If you have considered selling your home, in order to "buy up" to a larger
home, now could be the best time. Here is the reason. Let's say you
currently owe $80,000 on your present home. The rate is 12%, and your
payments are about $823 per month.

You don't want to raise your payments, but want a larger home. Because rates
are lower now, you may be able to secure a 9% loan. To keep your payments at
the $823 per month level for 30 years, you could borrow approximately
$102,000 at 9%.

In other words, your borrowing power goes up, as interest rates go down. For
the same $823 per month, you could own a larger home.

Interest rates are not expected to rise dramatically in the near future.
But, don't wait too long to begin the selling/buying process. Remember, you
need to allow time to market your existing house, find a buyer, close the
sale, and buy your next home, all before interest rates begin to climb.

Your real estate agent understands how lower rates can benefit you through

ownership of a larger home. Take time to learn more. "Carpe diem" - seize
the day!