Buyer Considerations-Mortgage Interest Rate Savings Chart
If a homeowner kept their home with a $500,000 mortgage for 30 years, but waited to buy after rates went to 10%, they would pay the bank an extra $1,704 each month or $1,704/month × 360 months = $613,440. Why pay the bank extra?
The History of Interest Rates
THE HISTORY OF INTEREST RATES 1. For nearly 30 years, the interest rate averaged around 7.5%-8.0%. But, with the Fed Policy of Quantitative easing, the rates have been artificially low at around 4%. 2. With the Fed modifying it’s policy, nearly every expert agrees rates will increase. Many experts expect rates to return to the 7.5%-8% in the near […]
Bank Foreclosure Funnel
BANK FORECLOSURE FUNNEL The funnel above shows the difficult situation for banks. They have an overabundance of delinquent homeowners, Lis Pendens that have been filed, and REO properties they are holding. So, why don’t they step up each phase of the foreclosure process and wipe out the bad debt? Because dumping all of this […]
Are Responsible Home Owners with Great Credit Being Cheated?
Are Responsible Home Owners with Great Credit Being Cheated? Consider the following Scenario: The Bigheads live next door to the Frugals. They’ve been friends for many years and purchased their identical homes at the same price, next to each other in 2006. They even used the same bank to finance their purchases at 7.2% interest […]
Never Rent! Let Uncle Sam Help Pay for Your House
Never Rent! Let Uncle Sam Help Pay for Your House One of the most revered “Sacred Cows” in the Tax Code is the deduction that Homeowner’s are allowed to take for the mortgage interest and property tax expenses they pay on their primary residence. Homeowners are allowed to write off mortgage interest and property taxes […]
Don’t Make Banks Your Private Charity
Don’t Make Banks Your Private Charity All buyers, even investors, should consider the interest rate issue: 5.2% April 2011 9.2% 2014? 7.2% 2012? 4.2% Dec 2010 For every 1% interest rates increase, it costs borrowers approximately $0.60 per month for every $1000 they finance. Formula = $0.60/$1000/month/1% This doesn’t sound like […]
Ben Franklin Had it Right
Ben Franklin Had it Right Weighing the Pro’s and Con’s to Make the Right Decision. Making the best decision regarding when to buy or sell is usually one of the most important life-changing decisions a person can make. Ben Franklin was considered both one of the most innovative inventors, and greatest statesman ever in the […]
The Right Way to Handle Floor Duty and Sign Calls
Exploiting Opportunities From Listing Sign and Floor-Time Calls. Many Broker/Owners project that as much as 50% of the calls that come into their offices (excluding agent calls), with inquiries about properties, are from Buyer’s who purchase property locally within the next twelve months. If this is true and the average prices of a home is […]
Next Generation Real Estate Services
Next Generation Real Estate Services This is a great approach to use for branding yourself as being the most professional realtor in the market. The approach also allows you to deliver bad news or aggressive arguments without being offensive. The travel industry ceased to exist when the internet became popular. Most experts believe the reason […]