The Real Deal on Refinancing your Mortgage

Here's a Video on the real scoop on refinancing your property. A lot of people think that a refinance is available to whomever, whenever...for not a lot of cost involved. Well, that's not true. There are certain considerations that need to be addressed before an owner can just go get refinanced.

First I must say...Videos are great! They are a quick and easy way to get informed - fast! So, here's a good one for you. Personally, information sinks in the faster if I see it in more than one form, so I'll break it down for you as well.

In order to refinance you and the property in question must meet certain criteria.

Credit must still be good 675+, or For FHA 620...some lenders are saying they will go lower, but the folks I work with disagree...each lender is different:)

Debt to equity must be high enough to refinance...which means the property must have some equity

Home owner must also consider if it is worth the cost associated to refinance. In most circumstances it will take 2-3 years to re-coup the initial investment it cost to refinance.

Here's an online refinance calculator that will help you determine if a refinance will benefit you, how long it will take you to recoup you investment, and the costs involved.

Some questions to consider:

1. How good is your credit?


2. What kind of rate can you get?


3. What is the current value of your home?

For help with any of these questions consult a mortgage professional and your Realtor.

AIG Cries for More Cash-o-la

This morning AIG threatened the US Government with a "Catastrophic Collapse" if they are allowed to fail. In a 28 page report they describe the repercussions of it's demise. After receiving 3 previous bailouts, for a total of 188 billion, now they're back for more.

Originally, the money was suppose to go directly to AIG, but it turns out that AIG has been feeding banks that need a big of resuscitation, oh yeah and to pay for swaps. According to Reuters, among these banks are: Goldman Sachs, Deutsche Bank, Merrill Lynch, Societe Generale, Calyon, Barclays, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America and Lloyds.

The initial bailout was to make AIG "pay" for it with high interest rate...the WSJ says that (AIG) has gotton pretty much a complete reversal of terms. Oh, my...is that a huge loan modification or what? Rick Santelli calls it "the new poster-child of all the reason why the gov't with the best of intentions just has a raft of unintended consequences and complex issues that just seem to get deeper, darker and more tough to follow every time".

Somehow the video I had on this news...just dissapeared. I'll repost if I can dig it up.

Is now the Right time to Buy?

Everyone is asking, "is the now the right time to buy?" Only a crystal ball can give you the definite "yes or no" that you're looking for...that is if you believe in crystal balls. That question can be accurately answered yes and/or no, with a understanding of the financial markets.

For those folks waiting for the perfect opportunity to buy this might be it. Interest rates will go up once thefinancial systems stabilize. They have to, it's called inflation. Due to the massive amounts of money being printed, inflation is inevitable. Once the dollar weakens, due to inflation, we'll have less purchasing power.

While prices may continue to decline, with higher interest rates you'll be able to afford less. Let's look at an example.

• Loan Amount: $200K


• Interest Rate: 5%


• monthly payments $1,073.64

vs.

• Loan Amount: $200K


• Interest Rate: 7%


• monthly payments $1,330.60

vs.

• Loan Amount: $200K


• Interest Rate: 10%


• monthly payments $1,755.14

So, as you can see whether prices continue to fall or not, affordability is often dictated by interest rates. In my opinion, this is part of the reason for the bubble. Because interest rates were offered at low, low introductory rates folks could afford more...until their interest rates went up.

Let's look at the "no" side of the question...no this is not a good time to buy. With the financial markets in it's weak state, interest rates could stay low for a while...while prices continue to decline, creating even more affordability.

Whether you're looking to buy now or wait if out for a while, it all comes down to your motivation. If you can afford the home you want now, buy. If you can't, continue to wait. Either way, you're right. If you're waiting for the bottom, make an educated decision by knowing the facts.

Go Green to Save MOney

Saving money these days is on everybody's mind. Whether it be on dinner out, groceries, getting an americano rather than a latte...people are cutting back due to the uncertainty of our economy. It's not a bad thing...saving is good, it's how you build wealth, and gives you character. When times get tough just remember the quote by Friedrich Nietzsche, "What doesn't kill us will only make us stronger,"? I know it's easier said than done, but really, do we need to satisfy every whim with a latte or a new hand bag?

Going Green to Save Money - As the price of energy goes up, not only in price, but also in environental and health impact, we can save by slowly implementing "green" components into our lives.

1. Audit your Home - Heating and Cooling are the biggest expenses on your energy bill. Find out where it's going! Utilities companies will sometimes do free audits.


2. Replace the old with the Green - This is the most cost effective way to save money. Replace bulbs with compact fluorescent light bulbs or light emitting diodes. Turn off and unplugg lights, fixtures, wall mounts, and power strips.


3. Buy Wise - Appliances and Plug-ins are the next big expense...Buy energy efficient models. It might cost more upfront, but in the long run it'll save you money and you'll be doing mother nature a favor.


4. Make your Own...Energy that is! There are many government grants for water, power, and wind energy production...of course these options will depend on your climate, budget, and space.


5. Use portable solar chargers for phones, laptop, and other small electronics.


6. Ride a bike, commute/rideshare, or take a bus.

Going Green is a great way to save, reduce use, and better your community.

Enjoy and have a great day!