COVERITLIVE.COM

11:38

Philly.com - Alan J. Heavens will join us at noon. Feel free to begin submitting your questions now.

12:00

Alan Heavens -
Hello. This is Alan Heavens, the Inquirer's residential real estate writer, and I'm ready to begin fielding your questions about the market.

12:02

[Comment From William F.]
Good afternoon. do you feel working with a mortgage broker for the purchase of a new home is still a viable option as opposed to a local lender?

12:06

Alan Heavens - William: My best advice is to shop around for the best rate, whether you deal with a lender or a broker. A broker deals with a variety of different lenders and, if he or she knows what they are doing, will get you the best rate. You'll need to contact a variety of lenders if you go that route. What you need to watch out for are fees. They can boost the cost of the mortgage. Some lenders charge fees that don't need to be charged, if you understand what I'm saying. Question everything. It's your money, and there are lot of people in foreclosure because they didn't ask the questions.

12:06

Alan Heavens - Next question?

12:07

[Comment From Bob]
What do you see happening with mortgage rates for the rest of the year?

12:09

Alan Heavens - Personally, I don't see them dropping to 4.5 percent this year or ever. The economy is improving, at least on paper, and that usually means that interest rates will rise. I don't think they will go above 6 percent anytime soon. They are, however, at historic lows, and if you have a job, and the money for a big down payment and closing costs, and good credit, you might want to take advantage of those rates. Next question?

12:09

[Comment From Jim]
Have you heard any talk of the government repealing the payback requirement of the 2008, $7,500 first-time home buyers credit?

12:13

Alan Heavens -

No, I have not. Not all that many people took advantage of that offer, which required first-time buyers taking advantage of the $7,500 tax credit in the July 31 housing act to pay the money back in $500 increments to the IRS over 15 years.
Still, it will be a question I will ask HUD Secretary Shaun Donovan and U.S. Rep. Barney Frank when I meet with them in DC June 19.
Thanks

A question now from Brian

12:13

[Comment From Brian]
Is it better to save money to cover some down payment and closing cost money and wait to buy or include most of those costs into your loan if you can cover the monthly amount and want to move now? Also, how good are the deals out there on new construction homes and what kind of discounts would be within reason to request?

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