My New Blog

As I predicted two months ago interest rates are on the way up. While we all agree that demand is down we forget about the government who can not quite spending money faster than we make it.

For you who were not around during the Jimmy Carter administration we made many loans in the 14% range to well qualified borrowers. Under president Carte we had “run away” inflation why because we spent more than we made. At that time it was the price of oil now Citi Bank,GM,and many others. We are spending money on more things than you can count. We are spending more than you can make.

Folks all I am saying is be ready do not wait as some have said till rates get to 3.5% you will be waiting a long, long time. Keep up with our rates and remember our lock and shop. Where you can lock in that rate before you go looking for a new home.

Don’t worry we will get through this but be prepared don’t be reactive be pro active. That’s my thoughts what’s yours?

  Well sorry about not writing but with the lowest rate since 1972 we have been a little backed up.  As you can imagine we are in the mist of a refinance boom.  With interest rates under five percent everyone is trying to decide how long they are going to be in their homes.

  Well I promise it want be this long before I write again. Your friend Bob

If you are thinking about buying a new home remember three things. Assuming you are not a real-estate professional there is no way for you to learn enough to represent yourself. I would suggest that you always ask for comparables and that you take time to look at them agents already have this information.

Second decide how much you can pay and still be comfortable with the payment please notice I did not say how much you can qualify for .We will qualify you to see how much you can afford however happy home ownership means your budget has more than a home in it remember you still have to live make sure you can still save and have some fun.

Third more than likely whatever you buy will be in ten years very good deals once again remember I said ten years not two years. Make sure you buy a house with a long term view. If you think you may move in five years then I believe you may want to rethink why you are buying.

As always this is just my idea let me hear from you.

Ok the election is over your guy won or lost now what. I suggest that you plan for for your future now. The economy is going up in some areas down in others. Your job is to make it an up year for you what ever the economy does .You may have to move you may have to down size you may have to re finance you may have to change professions.  What ever changes have to be made the one constant is you.Remember one thing you are competent to handle what you have too. the power you have is amazing when you put your mind to the task. to borrow from Nike just go do it.

That is my opinion what is yours.

  How can anyone say now is the time to buy?Well my friends lets take a look at the market.

 1) the price of your home is down so is your equity.

  The price of the home you are looking at has gone down as well.There for in relative terms you are ahead.

 2) The interest rate on a new loan is the same or higher than my present rate.

  With the amount of money Uncle Sam is putting into the economy rates are going to have to go up and go up big to get investors to buy bonds.Therefor rates today will be cheap compared to a year from now.

 3) My stocks are all down the value has dropped 30% I am just not sure .

   You have to ask yourself has the value of my home drooped 30%,I don't think so,and didn't someone recommend comedies,gold,oil,silver.I ask what about realest it has historically been a grate hedge against inflation.I say its hard to enjoy a block of gold that you have to pay someone to maintain and keep it safe.

 Well the truth is no one Knows however here are something to think about.

First,where is the money coming from for the bailout?Second if General Electric is having to pay 10% for money who is the better credit risk you or GE?And last but not least how long are home prices going to be down?

 If you want to buy a new house now is a good time.If you are going to refinance now is a good time. The only thing that I would caution is be sure the house you buy will suite you for ten years.That the mortgage you get will last as long as you need it ie. love the house,will never move,think Thirty year fixed.

 Well that is my take what is yours?

Are you:

My company is not doing well.  OR   The company is making money and I really am good at what I do

I may not  qualify for a loan now.  OR   I'm not sure what  I qualify for think Ill check heck its free

The price of houses has been dropping  OR  the folks I have talked to who bought ten years ago would not sell to day for what they paid.

The world is to unsettled . Or  I cant control the world  however I can control my future

My 401K has lost value oh my.  Or   I am not retiring in the next ten years and houses and stocks will be way up by then.

With Wachovia being taken over by Citi what does it mean for the mortgage market? I guess the most important thing to people who will be looking for a mortgage in the get couple of years there will be fewer places to shop.If you have twenty places to shop companies will try and differate themselves from their competitors.If you have five or six then they know what each does and are not as concerned as maybe they should(bought gas lately). The bottom line is you will need more help than ever before if you are less than perfect.

 That is my take what is yours?