New, low interest rate gives Orem builder new, low house payment

Orem’s Dan Bishop is in the home building and remodeling industry, so let’s face it, he’s had things about as bad as anyone in this recession.

But while staring down uncertainty and challenge, Dan kept his wits about him and took advantage of the economic environment.

“With me being in the construction industry, we wanted to do anything we could to cut down expenses,” Dan says. “That’s when we refinanced our home at a great rate and put more money in our pocket on a monthly basis.”

In fact, Dan’s refinance with Family First Federal Credit Union saves him and his family about $250 a month.

Dan was also pleasantly surprised to find out his home hadn’t depreciated — despite the housing woes the country has been facing — in the 18 months since he had last had an appraisal.

And Dan has a front-row seat to watching others benefit from economic changes. He works for a remodeling company and meets many people who are improving their existing home, rather than moving to a new home.

Here’s a builder who is moving up the ladder.

GET THE FACTS
• Real estate prices in California and Arizona have dropped more than 20 percent in the past year; Nevada dropped more than 30 percent. Utah has seen only a 9 percent decline.

• The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

• Utah homebuyers are taking advantage of low interest rates and governmental incentives. Pending homes sales have gone up and are expected to continue to rise. While some sectors of the economy may still be in recession mode, real estate is growing.

Taylor’s Take
The U.S. service sector — which includes retail, transportation, health care and real estate — makes up 70 percent of the U.S. economic activity. Six of the main service industries surveyed reported growth, including retail and food services. Real estate is also one of the sectors that reported an increase in employment.

The Utah economy, according to analysts, is experiencing recessionary challenges, but there are many positive indicators to highlight. For example, job losses are minimal as businesses stabilize. Plus, more than half of local business executives surveyed indicate they plan to spend as much or more on capital expenditures this quarter, compared to the fourth quarter of 2008 (see www.sltrib.com/business/ci_12453279).

Todd’s Take
Many large financial institutions are closing home equity lines of credit due to declining home values. At Family First Federal Credit Union we are still offering home equity lines at 95 percent home-to-loan value. If your credit line has been closed or lowered, we recommend you shop around and find a local institution that is willing to work with you and your situation.

With interest rates at all-time lows, now is a good time to refinance your current mortgage.

In national news, the number of U.S. homebuyers who agreed to purchase a previously occupied home in April posted the largest monthly jump in nearly eight years, a sign that sales are finally coming to life after a long and painful slump.