My New Blog

One of the best long term strategies today when buying a home for the long term is to buy the interest rate down. Instead of asking the seller to make a price concession which is typical in this market, ask for a credit to buy down the interest rate.  This strategy is nothing new but it works! 

On a $600,000 loan you can save about $30,000 over 5 years using this strategy.  Not only does to reduce the mortgage payment but it also makes it easier to qualify for the loan.  Reducing the sales price $15,000 saves the borrower about $70 dollars a month but taking that same amount of money and buying down the interest rate will save about $380 a month. 

I provide the buy down analysis to all my clients that are thinking about buying a home to determine exactly how much they can save by implementing this simple but effective strategy. 

The recent rally in bonds has put us in uncharted waters in terms of their yields. The benchmark 10-Year Treasury Note is currently yielding 2.70%, which is it lowest on record. It broke below 3.00% last week for the first time since the Notes were issued in 1962. While mortgage rates have not recently plummeted as quickly as the yield has, they have fallen quite a ways and show signs of continuing to slide. The downside to that is the possibility of rates spiking higher at any moment. Bond yields and mortgage rates can worsen much quicker than they usually improve.   

Great news, I have added two great  features to my web site.  You can now view the MLS (Multiple Listing Service) as well as  view my magazine online. 

Go to my home page to find the link for the MLS.  This is the the same search engine that real estate agents use to find the best properties in the area.  If you would like me to recommend an agent in  your area please email or  call me and I can tell  you who the best agents are.  The magazine that i publish is full of great articles that can help you achieve financial success.

We have seen some pretty good pricing come out in the past week with  jumbo rates seeing some nice improvements. the 30 year jumbo has not improved and will most likely be out of play for the next few months.  the 5/1 arm jumbo i have seen as low as 6.00% at 0 points this week.

Conforming interest rates are looking pretty good with  the 30 year fixed rate currently below 6.00%  this week. 

Markets continue to decline in our area but at a slower pace so we might begin to see the market stabilize in the next few months if the trend continues.

Demystifying Real Estate Investing

Overcoming the misconceptions that keep you from investing in real estate

Most people who aren’t investing in real estate are being stopped by doubt and fear. They may want to invest in real estate, but each time they consider taking action, they come up with an obstacle or a core belief that keeps them from moving toward their dreams.

According to The Millionaire Real Estate Investor by self-made millionaire and real estate investor Gary Keller, most successful real estate investors have had to overcome certain beliefs that later proved to be unfounded. Some of these beliefs center around the way they view themselves as investors, and the others are focused on beliefs about investing. By addressing these doubts and fears, and recognizing that they’re unfounded, you’ll eliminate the major barriers to becoming a real estate investor.

· Personal Myth #1: “I don’t need to be an investor. My job will take care of my personal wealth.” Truth: History indicates that few jobs pay enough to create true financial independence. Financial wealth building depends on another vehicle.

· Personal Myth #2: “I don’t need or want to be financially wealthy. I’m happy with what I have.” Truth: Financial wealth offers greater opportunity to care for yourself and others, and that is something most everyone wants and needs.

· Personal Myth #3: “I can’t do it.”

· Truth: You don’t know what you can or cannot do until you actually try.

· Investing Myth #1: “Investing is complicated.”

· Truth: Investing is as complicated as you make it.

· Investing Myth #2: “All the best investments require knowledge most people don’t have.”

· Truth: Your best investments will always be in areas that you can or already do understand.

· Investing Myth #3: “Investing is risky. I’ll lose my money.”

· Truth: Investing and gambling are not the same thing. Investing, by definition, is not risky.

· Investing Myth #4: “Successful investors can time the market.”

· Truth: Timing isn’t about being in the right place in the right time. It’s about being in the right place all of the time.

· Investing Myth #5: “All the good investments are taken.”

· Truth: Plain and simple, every market, in every time, has its share of good investments.

There’s nothing more powerful for keeping you out of action than fear and doubt. By seeking the truth, rather than relying on unfounded beliefs that lead to fear and doubt, you can overcome your greatest obstacle and get closer to achieving your dreams.

If you’re interested in investing, but you have doubts about whether or not investing fits in with your current financial program, it’s best to consult with a qualified and reputable Mortgage Planner who can assess your financial situation and put you on a plan that targets your goals. As with any financial program, gaining clarity on the facts is always the best place to start.