Is it time to refinance and save money? Maybe. I have a lot of clients who call me with 30 year fixed-rate mortgages and think that just because interest rates have dropped a lot they are going to switch to a 15 year mortgage and keep their payments the same, and cut a lot of years off of their mortgage. This is likely not going to happen. Take a look Read the rest of this entry »
For quite a while I have heard rumors that so-called “Obamacare” was partly being paid for by a 3.8% increase in the capital gains tax on real estate. This is mostly not true. If you dig deep into the issue you will find it will not apply to most people. However, in principle, there is an increase in the capital gains tax on real estate for some wealthier folks. Read the rest of this entry »
Who is this clown? Why, it's Ben Bernanke, that's who! He just said that he was going to keep interest rates low through 2013. Thanks a lot Ben, we all appreciate it. The problem is, the general public has taken that to mean that interest rates on mortgages are going to stay low through 2013. Not so. Read the rest of this entry »
Often times a Realtor will suggest to a homebuyer that they use the real estate company's "in-house" lender. Realtors don't usually push these lenders on their buyers, but they are definitely suggested many times. Every wonder why? It is important to know how these lenders are structured, and how they operate. Read the rest of this entry »
So the debt ceiling is all fixed? Too bad. What else will generate so much hyperbole from our politicians? There were stories of terrorism, global disaster, and economic meltdown. My favorite was this one from Nancy Pelosi who insisted the debt limit be raised massively, "We're trying to save life on this planet as we know it today." Rep. Michelle Bachmann worried that raising the debt limit at all would be "like saying we embrace being Greece." It was fun to watch. Rep. Maxine Waters said the final compromise bill "may be the single-worst piece of policy to ever come out of this institution." Maxine needs to brush up on her history, this comes nowhere close.
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I get asked frequently what I think if a client pays their mortgage on the 14th of each month, right before the payment is considered late. This is usually done because people think they are going to save money by keeping the money in their bank account from the 1st of the month through the 14th of the month. It saves $1.25, and that is all! "How so?" you might ask. Below is the math: Read the rest of this entry »
Today’s video blog is about interest rates. I thought it would be interesting to do a video blog underneath my fan. That's what you see above me.
Does anyone know what a proper comp is anymore? Yes, I believe they do. The problem lies in the fact that people do not go to the effort to do the research to uncover the facts and differences behind each comp. So I end up screaming at my computer or my telephone (just like the man in the picture) when I get responses from homeowners who are trying to refinance their home and claim a certain high valuation, or from a seller who is trying to justify a certain high price on a home they are selling. The lack of research is stunning. Below are some examples: Read the rest of this entry »
Do you think real estate prices are on a straight line down? Wrong. Remember when everybody thought real estate prices were on a straight line up? Wrong! Real estate prices are up and down, and all-around. They are up in some places, down in others, and up and down in others. And of course real estate is very local, down to the state, county, community and sometimes even down to the street. You really have to dig down into the details to find out the true value of a house. Read the rest of this entry »
I came across an article I just had to re-post. We all know about the problems in the mortgage industry with people who are qualified but end up getting hassled, questioned, asked for piles of paperwork, or worse, they get their loan application rejected. Below is an article I found on Reason.com, which is exactly how I'd want to see a loan application from Congress for a mortgage get rejected:
"Dear Congress,
Thank you for your interest in the American Public Trust's Gold Card credit program. Rest assured your application has been given thorough and careful consideration by the American people. Read the rest of this entry »