-
News You Can Use
Nine years in mortgage lending has allowed me to serve many wonderful and smart people. In the last couple years a trend started emerging with my married clients. Increasingly my primary contact for families has been the wife/mother. I call these clients my ‘CFO moms’ because they are money savvy and apply business principles when managing their finances.
Today I was on WCNC’s Charlotte Today talking about the Financial Facts Smart Moms Know:
- Have a trusted board of directors. Financial solutions are not one size fits all so it’s prudent to have expert advice on areas such as investments, taxes, banking and insurance. Use their knowledge to maximize your efforts and make wise choices.
- Keep your credit in good standing. A solid credit score will not only benefit you when applying for a loan but when engaging other providers such as insurance and utility companies. They use it to evaluate your repayment behavior which may affect the cost of doing business with them. Check your credit annually at AnnualCreditReport.com and resolve any issues as soon as possible to limit their impact.
- Have cash reserves. Most families don’t plan for a major repair or other significant expense but they still happen. By having three to six months’ reserves set aside, the effects of unexpected expenses can be minimized.
- Leverage what you already have. Use a Flexible Spending Account to help get more bang for your buck on childcare or healthcare expenses. Call your mortgage company to compare your balance to your home’s value. If you have at least 20 percent equity, you may be able to remove the monthly mortgage insurance to increase your monthly savings.
- Money saved is money earned. Use online tools like Mint.com to evaluate your budget and spending habits. Finding hidden savings can allow you to spend your money more efficiently - towards long term goals or bulking up cash reserves. Find ways to save as you spend too. By being a deal hound or playing the coupon game, the savings can really add up!
My passion is for all my clients to make smart choices and feel empowered when doing so.
Featured Loan Program
Good Neighbor Next Door
This specialized FHA program allows teachers and first responders to purchase a home with a substantial incentive in the form of a discount of 50% off the list price of the home.
- Eligible borrowers are law enforcement officers, pre-K through 12th grade teachers and firefighters/EMTs
- Borrower must commit to live in the home for 36 months
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Have you heard that RelocateAmerica.com included Charlotte in its list of the best places to live in the U.S.? I’m biased but I can understand why they picked the Queen City as a winner. The editors based their results on interviews with local leaders and residents’ surveys. Also weighing in were economic, environmental, education, crime, employment and housing data.
Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
-
News You Can Use
“What are rates going to do?” That’s a question I hear as often as weathermen are asked for their predictions. Just like meteorologists try to predict the next snowmageddon, I read the economic tea leaves and get a sense of where rates are heading. Sometimes there are surprises like 2009’s Black Wednesday – but for the most part, lenders have a good idea of what’s on the horizon. Let’s start with a quick lesson in mortgage rates:Rates are determined largely on the trading of Mortgage Backed Securities (MBS). In a ‘normal’ market and in simplest terms, bad economic data helps rates. The cause of these record low rates is that the Federal Reserve entered the MBS market en force in November 2008. This sent 30 year rates hurdling downward towards 5% – sometimes even below it. And ARM rates, fuhgeddaboudit it – in the 3s? Wow.
Alas, all good things must come to an end. The Fed announced a few weeks back that they will wrap up their MBS purchase program at the end of the month. After March 31st, we’re on our own folks. We’ll return to the normal MBS influencers – domestic factors – economic, social political indicators – and yes, even global news weighs in. Many estimate that once the market returns to normal (i.e. unsupported by the Fed), rates will rise .75-1% from where they are now.
So when people ask ‘what are rates going to do in three to six months from now?’ my response is usually, ‘I wish I had a magic eight ball’ or ‘If I knew I’d be managing a hedge fund’. But for 2010 I know what mortgage rates will do, they will go up. What I do know is even when that does happen, homes will still be very affordable as will rates and the opportunities for buyers are there for the taking.
Featured Loan Program
Good Neighbor Next Door
This specialized FHA program allows teachers and first responders to purchase a home with a substantial incentive in the form of a discount of 50% off the list price of the home.- Eligible borrowers are law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians
- Borrower must commit to live in the home for 36 months
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Did you know Charlotte has a new local live show featuring entertainment & information on health, food, fashion, finance, pets, fitness & more? Charlotte Today airs on WCNC-TV weekdays at 11am featuring Colleen Odegaard as its vivacious host. If you can’t catch it live, it is certainly a show you should add to your TiVo to-do list!Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!