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May 29, 2010
Happy Memorial Day Weekend!
We hope you are enjoying a fun, safe and relaxing holliday weekend.  As the summer season begins we continue to find ways to serve your financial needs.  We would like to alert you to a possible oportunity to save thousands of dollars.     

Did you know that the turmoil in the stock market and the European debt crisis has helped push U.S. mortgage rates to near record lows, creating a good opportunity for those looking to take out a new mortgage or refinance an existing one?
On Thursday, Freddie Mac reported that the average rate offered on 30-year fixed-rate home loans dropped to 4.78%, not far from the record low of 4.71% set in December.  The average rate offered on 15-year fixed-rate loans was also reported at a low 4.21%.
Last year, experts anticipated that loan rates would be rising by now, as federal housing and home-loan support programs expired, home prices stabilized and inflation became more of a concern.  However, the recent default scare in Greece and other debt-burdened European countries has helped to keep rates low. 
However, rates may not remain low for long. Homeowners should consider taking advantage of them while the opportunity lasts.  Upfront costs can be high and new mortgages extend the period of indebtedness unless borrowers substitute a shorter-term loan, but longterm savings can be considerable.  For instance, a monthly payment of principal and interest on a $350,000 loan at 6.25% is $2,155; at 4.75% the payment is $1,826, saving nearly $4,000 a year.
Not everyone can take advantage of this opportunity, but for those with equity, good jobs, and good credit ratings, this opportunity to lock in long-term rates around 5% is something that has not been seen in some time. 

If you would like to learn more about this opportunity, and if you would like to discuss your options further please contact us to schedule a time to meet.  We can discuss which options are available to you and what best suits your situation.  We look forward to hearing from you soon.
Joseph M. Dowling, CPA                                             Sean M. Dowling, CFP, EA
President                                                                Vice President