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Recent mortgage banker news is that more mortgage applications were again coming in as this is summer now.

 After the July 4th holiday, I expect the market activity to increase again with more real estate listings of homes for purchase with loans and more refinance loans. I am still seeing properties with older mortgages at 7% that are now getting around to refinance to lower rates.

 It is very important to know your current interest rate and how much you can save with a refinance. Additionally, more listing and properties will be added in July, August and September. This market will continue all the way into December with present activity.

Looking Back at my own first house purchase in a runaway real estate market Circa 1974. San Diego properties were increasing in value very fast. Purchase Price $29,500 with a 20 year mortgage FHA at 22.5% loan rate. My Payment was $500 per month. Same house today is in the $450K value range.

 When I bought my first house in 1974 as a single guy at the tender of 20 years old, my FHA interest rate was 22.5%. My monthly payment was $1 dollar toward principal loan each month and $499 dollars eaten up into interest on a house that only cost $29,500. 

I made double payments with one principal and interest and the second payment principal only. Eventually mortgage rates returned to lower levels back then but many people did not understand the higher interest rates were eating up and equity.

Some people made their on time monthly payments on home loans but still lost homes due to the higher interest rates or market conditions eating up any equity in the 22.5 % FHA Home Loans like the one I had.

Today these low rates are amazing, but back in 1977 my PHD college teachers in Real Estate were forecasting residential homes would be in the million dollar range and it was difficult to comprehend back then, but they were right. 

It you have any questions or thoughts about Real Estate and would like free advise then give me a call. I am a Broker Owner of my own Real Estate Firm and a Certified Residential Appraiser.  

Melville Appraisal 
Tom Melville Properties
Dre 00774101
Broker Owner 
831-883-0406