Pick Up The Pace (On Your Mortgage)

All of us dream of the day our home will be paid off.  For many, now is the ideal time to speed up your pay-off pace.  15 year rates are near record lows, meaning you may be able to refinance, keep your monthly payment nearly the same, and shave YEARS off the life of your mortgage.  Consider this example:

Mr. B. obtained a $300,000 mortgage at 6% in 2001.  His payment is $1798/month, and now his mortgage balance is $257,000 with 21 years left.  By refinancing to a 15 year fixed at 3.75%, his payment will be $70/higher and he will pay his mortgage off 6 years faster…avoiding $130,000 in monthly payments!!!  In short, Mr. B. will pay $70/month and save $130,000…talk about a wise investment!

Numbers don’t lie.  Give us a call so we can discuss your options of becoming mortgage-free faster than ever before.

4th Quarter is “Crunch Time”

I can’t believe we’re already heading into the final quarter of 2010.  It seems that Avery, my youngest daughter, was born just a few weeks ago, but now she’s walking around and Mary is sending out invites for her 1st birthday party next month!  What happened?   

Looking forward…the coming months typically are the slowest ones of the year for my business.  After all, it’s more enjoyable for a homeowner to plan a holiday party than to take time to sell, buy, or refinance their home! This year’s 4th quarter, however, homeowners have much more at stake with their finances. 

Mortgage rates have hit ROCK BOTTOM, enabling homeowners to save money, consolidate debt, or reposition home equity to other investments during these difficult economic times.  Unfortunately, many have not even inquired or pursued their refinance options.  Some hesitate upon hearing horror stories about other’s experiences; many wrongly assume they don’t qualify. 

If you have not yet assessed your refinance options, I urge you to look at the upcoming 4th quarter as “crunch time” and act now before rates go back up.  Crunch-time players don’t hesitate; they know what’s at stake and they take action.  Do you need to take action and save  money in this economy?  In other words…will you be a crunch-time player with your mortgage? 

To encourage you to step up your game, I am going to offer a FREE GIFT to those who contact me to review their refinance options.  There’s no pressure here; just an honest professional looking to honestly serve you before time runs out. 

Be Like Mike…step up and take the shot at refinancing before time runs out.

 In sports, the 4th quarter is the last chance to make a difference as the clock winds down and the pressure rises up.  The same is true for your mortgage as we enter the year’s 4th quarter.  Rates will likely be heading higher as we approach the November mid-term elections (politics play a bigger role in the mortgage market than ever before)…so time is running out. 

As a special offer only for only my blog readers, I will give a $10 iTunes gift card* for calling me in crunch-time and simply discussing your refinance options.  If we discover options, we’ll celebrate the wise play you made and the money I’ll help you save.  If not, you at least get to download some music & get to know me so you have a mortgage broker and REALTOR to trust down the road when you need to buy, sell, or finance real estate.

I look forward to hearing from you.

*To qualify for the $10 iTunes gift card, just give me a call and complete a loan application within the next 30 days.  That’s it!

The Fine Line Between Caution & Fear

In the last month we have taken a couple of trips up to my family’s houseboat.  My fondest childhood memories are from Instiable, and it is so fun to now watch my children begin to make their own memories there.

This last trip we witnessed Maddison perform a daring feat…she jumped off the top of the houseboat!  It’s about an 8 feet drop from the roof to the water, so for a little 4 year old that’s quite a leap.  My paternal instincts said to not let her do it.  She’s too little; she could slap the water too hard; she could not jump out far enough and hit the boat!…as a parent you always think of the worst.  But, I tuned all of that out and guided her out onto the ledge.  While it’s scary to let your kid take chances, being overly fearful for them can be even worse.

Kids are little sponges.  They observe our actions, our words, and especially our emotions.  A fearful parent will breed a fearful child, and a fearful child often grows up to be a fearful adult.  Too many of us, unfortunately & admittedly, let “fear take the wheel and steer” (a great line from the song Drive by Incubus) in our life, and it inhibits our ability to live life to the fullest.  As parents, we should try to avoid instilling a fearful outlook in our children by means of our own fearful behavior.

There’s nothing wrong with being cautious.  Caution can keep us safe and alive!  But too much caution, even towards our children’s welfare, turns to fear that is detrimental to their well-being.

Becoming overly fearful doesn’t just apply to parenting; it applies to everything.  In my mortgage and real estate practice, I often see clients, business owners, and myself make foolish, fear-driven decisions.  I’m sure you witness (and experience!) the same thing in your life too!  There’s a fine line between caution & fear, and it’s a tricky balancing act to pull off.  Parenting, more than anything, has taught me that.

As for Maddison, I’ll continue to show her how to make life’s risky “leaps” correctly, knowing the day will come where she will hurt her body or someone will hurt her heart (even worse L).  These risks, however, must be taken to keep her confident, fearless attitude intact.  If only all of us can be as fearless as Maddison!  The world would be a better place!

No-Cost (FREE) Refinances are Back!

One of my (and my clients’!) favorite refinance options is back…the no-cost refinance.   They were missing from the market for the last 18 months for a number of reasons, but now they’ve returned and I already have many clients taking advantage of them.  These refinance programs allow a homeowner to refinance to a lower rate and not pay a penny in closing costs.  Like everything, there are pros and cons to these creative options.  Let me explain further.

When a borrower considers the cost of a loan, they must factor two things: the rate and the closing costs.  Many focus on getting the lowest rate possible, but borrowers must realize that lower rates always have higher fees.  Conversely, higher rates have lower fees…sometimes no fees at all.  That’s where the no-cost option comes into play.

A no-cost refinance allows the borrower to pay a slightly higher rate than the standard rate offered by the bank and in return the bank pays the closing costs for them.  There truly are no closing costs paid or financed by the borrower.  These options come in handy for the following homeowners who want to reduce their monthly payment but:

1.) plan to sell their home in the near future, thus shouldn’t incur significant closing costs for short-term monthly savings
2.) can’t afford to pay or finance closing costs
3.) recently paid closing costs on a loan (either to buy their home or to do a previous refinance) and can’t stomach coughing up thousands more again to refinance
4.) prefer to “hedge their bets,” meaning they’d like to refinance for free now yet want to save their closing cost money for later as they believe interest rates may fall further in the near future.

Most of the no-cost refinances I’m quoting on 30-year fixed loans are currently at 5% (for loans over $250,000).  Would you like a 5% rate for free?  That’s not a bad deal.  If you’re interested, call me to discuss your options further.  Don’t assume you don’t qualify.  Also, if you are a reader and client who has taken advantage of a no-cost refinance in the past, please post a comment sharing your experience with and motivation for a no-cost refinance.

Being Professional Means Being Personal

 A colleague recently mentioned he wanted to improve his biography page on his web site to come across more professional to clients.  After making his “improvements” I noticed he polished up his professional accomplishments and completely removed the paragraph about his personal interests, hobbies, and passions.

This struck me. In my opinion, conducting yourself in a professional manner includes revealing yourself personally to create TRUST with others.  In fact, that’s what this blog is all about!  The slogan “Part Professional, Part Personal, Always Insightful” means I want to provide both professional and personal insight so you may better know and trust me and my services.  WHO you are often means more to others than simply WHAT you do. 

Maybe I feel this way because of my chosen field and the way I run my business.  When helping clients, I often ask them personal questions about their life goals and dreams so I can best serve them and make the transaction’s outcome signify more than just dollars and cents.  In requesting such personal information, it is only fair I reciprocate and divulge myself through the process.  While driving around looking at homes or while giving advice about paying off a mortgage early, clients learn about my family, my boating obsessions, my ideals…they learn about me as I’m learning about them.  As a result, many clients become friends.  To me, professionalism is more than respectful demeanor, appropriate dress and market expertise; it also includes a personal panache that allows you, the client,  to get to know, like, and trust me, the professional, as a person.

I consider this the “new-school” way of being professional.  Simply doing your job well is not enough.  You must do it passionately while exuding your values and your interests; your personal side.

If you are new to my blog yet appreciate this “new-school” professionalism, then read on and stay tuned.  My ultimate goal is to develop a genuine, trusted relationship with you.  At some point you’ll need real estate services, and I have faith you’ll confide in a REALTOR and mortgage broker that has been professional, personal, and always insightful.

Good Advice can become Bad Advice

 

Avery, our little smile factory, recently turned six months old.  It’s such a wonderful phase of baby-hood; every little detail of this world fascinates her.  She has become most curious and interested in food, as six months now marks the beginning of eating solids.  It’s amazing how fast medical advice changes, because only four years ago we were advised to begin solids with Maddison at four months.  Studies now show early introductions to food may lead to food allergies.

At first I was reluctant to buy into this allergy “theory.”  To be honest, Avery hasn’t been the best sleeper and I knew that eating solids would help her (as well as Mary & me!) sleep longer at night.  And besides, Maddison doesn’t have any food allergies despite starting solids at four months so what’s the big deal, right?  Ultimately, I decided to follow the medical advice of the professional rather than pretend I was a doctor myself.

Why am I writing about baby food (don’t worry, I’m getting to the point here)?  Because I’ve realized that doctors have the same difficult task as I do when it comes to advising clients with new information in an ever-changing world, and patients and clients alike must value the expertise their professionals possess.

Doctors say they “practice medicine” for a reason; their field is always changing.  Medical advice from years past often becomes outdated due to new research, emerging technologies, and evolving diseases.  And yet, many of us are slow to follow the new advice.  As I almost did, we dismiss the professional’s advice and assume we know better.

Similarly, the real estate market is always changing too.  Homeowners today are experiencing unprecedented dynamics when buying, selling, and financing their homes.  Unfortunately, many folks are relying on their personal experiences from years past or on antiquated advice from friends, parents and neighbors to guide their decisions in today’s tumultuous and complex marketplace.  Doing so can cost them a tremendous amount of headache, heartache, and money.

The simple truth is this: yesterday’s good advice can become today’s bad advice when you don’t keep up with the times.  Our world changes quickly, so seek professional counsel in areas outside of your comfort zone.  Like a doctor, I devote a large portion of my mortgage and real estate “practice” to staying current on the trends of the markets so I can best help you make informed decisions in a fast-paced industry.  I am committed to provide up-to-date expertise to you and to those you refer.  As always, thank you for reading.

Cheap Mortgages May Last as Investors Replace Fed

In February I posted in my 2010 Market Forecast that I thought mortgage rates would remain low this year in spite of the phase-out of the Fed’s massive involvement in the mortgage-backed-securities market.  That phase-out was completed earlier this week, and just today I read an article  that supports my theory.  Yes, the Fed is out, but private investors are back buying mortgages, and willing to do so at lower yields meaning lower interest rates for borrowers.

The article has a fair amount of financial jargon, but the crux of it is investors are back buying mortgages because of 1.) more capital due to improving financial markets; 2.) lower risk due to tighter lending requirements and stabilizing real estate markets; & 3.) continued subdued inflation.  Read the whole Bllomberg article written by  Kathleen M. Howley by clicking this link.

MORE Tax Credits Available for California Home Buyers, but You Better Act FAST

While the biggest political news of last week was surely the controversial Health Care Reform Bill, California also passed a housing bill that is sure to aid the state’s housing market.  A few months ago I shared that Governor Schwarzenegger, in his January State of the State address, said he wanted to create state tax credits for California home buyers. Today, I’m happy to report that last Thursday he signed a bill that gives both first-time home buyers and buyers of new homes state tax credits up to $10,000.

As I understand it, this tax credit is IN ADDITION to the current $8,000 Federal tax credit that is available until April 30th, 2010.  This means that if you are a first-time home buyer in California and get into contract to purchase a primary residence in the next 30 days, you could be eligible for $18,000 in tax credits!!!  Quite incredible.

But as lucrative as this new California bill sounds, it is as equally illusive.  Let me explain.

California passed a similar $100 million bill in 2009 that gave credits to buyers of new homes only, and funding ran out in 4 short months, even in a year that saw record-low California new home sales.  This latest bill provides the same $100 million for new home buyers and an additional $100 million for 1st time home buyers. through December 2010 OR until funding is exhausted.  With housing affordability at reasonable levels in many parts of the state, expect the funding for both of these credits to also dry up quickly; possibly within weeks after the May 1st commencement date!!!  Consider these numbers:

So, what’s the moral of the story?  Incentives (especially illusive ones) should not drive the decision to purchase a home.  Yes, another amazing incentive has been thrown at 1st-time home buyers, but it is simply the cherry on top of an already delicious ice cream sundae.  If you are considering home ownership, good for you!  Homes in most areas are more affordable now than a decade ago.  But, be sure you’re buying to enjoy the whole sundae (home), not just the maraschino cherries (tax credits & low interest rates). 

*Please consult a tax professional before assuming you may qualify for any of the aforementioned state or federal tax credits.

It’s The Climb

A few months ago my brother, Andy, climbed Mt. Kilimanjaro, the tallest freestanding mountain in the world.  The trek requires 6 days of climbing to get to the 19,000+ summit and back.  Needless to say, I was eager to hear of this trip that took him to the top of an African mountain like no other on this planet.  Over a beer and a narrated slide show, Andy shared with me the details of this life-changing adventure.

As I now reflect on his stories, I most remember his journey up the mountain rather than his time at the top.  Sure, the pictures of the summit were breath-taking, and the sense of accomplishment I saw in him was inspiring.  But, in life’s adventures it’s often the challenges, not the triumphs, which best define the experience.  On Andy’s climb, one of his porters broke his leg, so they had to carry on with fewer resources until a replacement could catch up with their team.  On the day before the summit he climbed a cliff called Barranca Wall, a steep 800 foot vertical climb that intimidates many climbers to simply turn back down the mountain.  Andy and his team were amongst the first that day to tackle it, meaning they had a unique opportunity to be at the summit in solitude.  These challenges they faced and overcame are the pieces from his adventure that I most remember.

As the great philosopher Miley Ray Cyrus says, “It’s The Climb” (listen to it here) *

“I may not know it,
but these are the moments,
that I’m gonna remember most yeah,
just gotta keep going.”

It’s no secret; life is challenging for everyone.  For you, for me, for your co-worker that you think has it easy…for everyone.   Over the last 2 years, several of my posts have been about dealing and struggling with challenges; I know I’ve been redundant, but we live in challenging times.  We are all facing our fair share of financial, relational, spiritual, and physical challenges:

February 2008 – Living In Gratitude
August 2008 – Challenges
March 2009 – Hurricanes
April 2009 – Win Some, Learn Some

In some way, all of these posts have also been about embracing challenges.  “There’s always gonna be another mountain”, and “it’s always gonna be an uphill battle.”  We need to learn to embrace challenges, because life is rarely a cake-walk.  We can keep our eye on the summit and relish those moments when we’re at the top, but we need to remember that it’s the climb that defines our journey.  I think Andy would agree.

*The song “The Climb” is provided only for illustrative purposes, and is not meant to be distributed without copyrights 🙂