Chitownproperty

Check out this great video from CNN.com about saving for a downpayment on a new home, including how to weigh investment risk given a set amount of time before the purchase.

Those of you who can remember your economics class in high school will be happy to know that the basic laws of supply and demand still apply to the real world, especially to the real estate market right now. The general slowdown in the market means that inventory, i.e. supply, is up, meaning that now is a great time to buy. This piece in the Tribune points out that buyers have a distinct bargaining advantage with both individual sellers and builders, and shouldn’t be afraid to leverage it. Sellers will be more flexible on their asking prices and builders will entertain more requests for additional upgrades if it means they can finally make a sale.

If you’ve considered refinancing your home, you may have heard the advice that you should base your decision on a fairly simple equation: if the upfront costs of refinancing your mortage are less than the potential savings on monthly payments, you should refinance. But this article in the Tribune says that calculation is too simple, because a very small change in rates could meet that standard. A homeowner who refinances too quickly, say when rates drop by a fraction of a point, could miss out on more savings if rates fall further. An economist at the Federal Reserve Bank of Chicago says homeowners should wait until they can refinance at an interest rate at least one point lower than their current rate, and even lower for smaller loans.