I always find it interesting when people assume Realtors are all make a killing when the market is hot, and that we're going broke when the market slows down. In truth, both present their own challenges. Similarly, right now everyone assumes that anyone who was a mortgage broker or lender is out of work or in huge financial trouble. But this article points out that GMAC is hiring 1,000 new employees.
The article sites refinancing, and increase Jumbo loan business, for the big uptick in GMAC's business. My guess is that re-fi's account for 90+% of the hiring. One of my listings is in contract and the Buyer's mortgage broker called me to see if I knew any Appraisers who could make it to the home earlier than his "go-to" guy could. Sure enough I have a friend I'd been out of touch with for a while who got his Appraisal licence around the time we lost touch, so I took the opportunity to catch up and see if I couldn't throw him a little business... just assuming he would be struggling right now. The truth is he is slammed and couldn't fit in the appraisal for days after the mortgage broker's guy. Re-fi's have him slammed.
It was sort of a "doh" moment... when interest rates at an all time low, of course everyone in the entire world is trying to refinance.
So it would appear that the acts of the Fed to lower interest rates is helping in quite a few ways. GMAC and other lenders, as well as Appraisers are hiring, and making money. Many homeowners are getting rates that are likely to keep many of them in their homes... fewer sales = less inventory, and fewer in-trouble owners = fewer foreclosures.
As for my business.... my partner Ciara and I are very busy too... but not too busy for your phone call. The "downturn" if you can call this relative blip in the San Francisco market has meant a lot of "wanna be" agents have left the business, and that makes our job easier. Hiring a quality agent is more important than ever, and whether you are Buying or Selling we recommend you interview several agents... just so long as we're one of them :)
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
2/15/09
Paying your mortgage off in half the time ala Money Merge Accounts
I'll give this short thrift because this post from "SearchLightCrusade" goes into incredible depth debunking Money Merge Accounts or MMA's.
But the bottom line is that when something sounds to good to be true, well then, it is. I actually dismissed the concept outright when I first heard about it for two reasons. For one is just it made no logical sense. How could you pay off your mortgage in half the time without paying anything extra? Secondly, if it was that good wouldn't EVERYONE already know about it and be doing it? Wouldn't Oprah include it on every "save money" show, and Suze Orman bring it up on every show?
The concept in a nut shell is that you set up either a HELOC (Home Equity Line of Credit) or get a special mortgage where you direct deposit your income into it, thus lessening the interest. You then pay your monthly bills out of that account at the end of their 30-ish day pay cycles. So instead of the bank floating your money for30days and making money off you, you float it and save the money. Finally, there is very expensive software that will read your budgeting and recommend when you pay extra payments.
It all sounds very convincing.... but to to skip to the punch line, the only part of this that really has a major impact are the extra payments, and you can do that on your own by either making a random extra payment, or paying every 4 weeks instead of every month (there are 52 weeks, not 48 in a 12 month year). And per the SearchLightCrusade post one extra payment per year on your mortgage pays it off 8 years earlier.
Paying an extra payment per year is free, and you don't need to shop for special mortgages or get a HELOC. Besides, these funny money schemes were mostly touted when everyone had access to easy money. All mortgages and HELOC's are much harder to get these days, AND usually the Money Merge Account ones are more expensive.
So take a free piece of advice.... if you want to pay off your mortgage early, make one or more extra payments per year. Your first extra payment can be the $3500 some of these slimy outfits want to charge you.
But the bottom line is that when something sounds to good to be true, well then, it is. I actually dismissed the concept outright when I first heard about it for two reasons. For one is just it made no logical sense. How could you pay off your mortgage in half the time without paying anything extra? Secondly, if it was that good wouldn't EVERYONE already know about it and be doing it? Wouldn't Oprah include it on every "save money" show, and Suze Orman bring it up on every show?
The concept in a nut shell is that you set up either a HELOC (Home Equity Line of Credit) or get a special mortgage where you direct deposit your income into it, thus lessening the interest. You then pay your monthly bills out of that account at the end of their 30-ish day pay cycles. So instead of the bank floating your money for30days and making money off you, you float it and save the money. Finally, there is very expensive software that will read your budgeting and recommend when you pay extra payments.
It all sounds very convincing.... but to to skip to the punch line, the only part of this that really has a major impact are the extra payments, and you can do that on your own by either making a random extra payment, or paying every 4 weeks instead of every month (there are 52 weeks, not 48 in a 12 month year). And per the SearchLightCrusade post one extra payment per year on your mortgage pays it off 8 years earlier.
Paying an extra payment per year is free, and you don't need to shop for special mortgages or get a HELOC. Besides, these funny money schemes were mostly touted when everyone had access to easy money. All mortgages and HELOC's are much harder to get these days, AND usually the Money Merge Account ones are more expensive.
So take a free piece of advice.... if you want to pay off your mortgage early, make one or more extra payments per year. Your first extra payment can be the $3500 some of these slimy outfits want to charge you.
Subscribe to:
Posts (Atom)
Posts
