| Kern County's economic outlook bleak
The Career Services Center has seen an increase in the number of people looking for jobs, but a drop in the number of companies offering them. "Let's don't say a recession," U.S. Presidential Republican candidate Fred Thompson has said. Actually avoiding a recession therein lies the difficulty. As some sub-prime mortgage rates reset, many Kern County residents will find: -Their mortgage payments this year aren't so low anymore. -Gone are the days homeowners tapping home equity to buy toys. -Average existing home prices dropped about $40,000 in the past six months. -New home construction hit a major low last month. -Building permits was at 74, an all-time low. That's the all time-low, since they started keeping track of building permits.
Ready To Consolidate That Debt?
IF YOU'RE A homeowner saddled with debt (and we're talking about bad, high-interest debt like the kind you pile up on credit cards) then Alan Greenspan has offered you an escape route. How so? Well, while credit-card interest rates have become increasingly immune to Fed rate cuts (with the average fixed-rate credit card now charging 13.5%), home-equity lines of credit, or HELOCs, have fallen below 4.0%. That's one of the lowest rates we've seen since these products first became popular back in the mid-1980s. And better yet, that rate is before you consider the tax break on your interest payments. Indeed, from a pure number-crunching perspective, consolidating high-interest, nondeductible debt into a HELOC or a home-equity loan, or HEL, is a no-brainer. Of course, your home is the collateral for such a loan, and foreclosure could leave you bunking down in Mom's den.
Low Interest Rates Spur Mortgage Refinancing
Homes sales may get a boost when the fed's recent interest rate drop translates into mortgage rates. The cut will make it easier for many people to get into a new home and will also enable people to refinance to avoid future hardship. Several loan officers and mortgage lenders all say the same thing -- now is the time to refinance your home. But before you do, consumers need to understand the process is not cut and dry. Loan officers around the valley say more and more homeowners need to look into refinancing to take advantage of the low interest rate. Different loans can either lower your monthly payment or even shorter your term But it's not that simple. In order to refinance, you have to have decent credit and have some equity built up in your home.
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