mortgage: Do You Want to be Debt Free? Or Do You Want to Be Wealthy? (Q&A) - 11/26/07 05:13 AM
I received some good comments on my post 11/23 "Do You Want to be Debt Free or Wealthy?", so I wanted to continue the conversation.  Hope it helps. 
Q from Konnie:  What do you consider a good return? 
A: Good question, Konnie.  This is where you'll want to work with your financial planner to determine the amount of risk you are comfortable with and that will answer part of the question (i.e. higher risk equals higher return) And of course, if your post-tax mortgage rate is 5%, you'll want to make sure your post-tax investment rate is at least that high, which isn't hard to do.   
You … (0 comments)

mortgage: Monthly Rate Check-November 1, 2007 - 11/23/07 09:28 AM
With all the turmoil in the market it's hard to believe that rates on 30 year fixed mortgages are basically right where they were 12 months ago, but it is true.  Rates are currently at 6.33% (6.584 APR), only slightly higher than the 6.25% (6.402 APR) we saw in October of 2006. 
Of course, six months ago we saw rates dip to 6.125% (6.276 APR); and in August, at the peak of the credit crisis, rates were 6.75% (6.907 APR).  But as the markets begin to equalize, once again we see what a great time this is for potential homebuyers. 
In the next 12 months, I … (1 comments)

mortgage: On The Upswing? - 11/23/07 09:12 AM
Posted:  August 23, 2007
Because Countrywide mortgage is an icon of the industry, what happens to the company can have an emotional affect on borrowers and investors.  So when the company found it suddenly difficult to obtain its usual sources of short term corporate debt (called commercial paper), they sprang into action and called in the big guns, asking for a line of credit from 40 banks and an investment of preferred stock from Bank of America.  They received both.
It may seem surprising that they were able to obtain such quick financing from so many different sources.  But I can tell you … (0 comments)

mortgage: Do You Want to Be Debt Free? Or Do You Want to Be Wealthy? - 11/23/07 09:09 AM
Should you leverage your home or pay it down rapidly?  This is a very personal question and the answer can vary greatly from person to person based on his or her disciplines.  Many planners today espouse the idea of paying down your mortgage completely for the piece of mind.  But do you think having a mortgage makes Bill Gates any less wealthy?  Would it be better to have liquid assets equal to or greater than your mortgage rather than giving all of your money to the mortgage company, especially if you suddenly found yourself without a job and in need of cash?
In order … (2 comments)

 

Glory Gray

Mortgage Planner

Weiser, ID

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Prime Equity Mortgage Group

Office: (208) 549-8700

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