January 2009 Newsletter

As I write this letter, I am looking out the window and it is snowing hard. Supposedly, we will get 1 to 3 inches. I think the weatherman has lied again. So far, this winter is reminiscent of last year, the toughest winter in 25 years, only this one has gotten a big head start. If you are in the snowplow business, there is no recession.

Speaking of the economy, I’m doing my best to be optimistic. The first two days of 2009, the stock market was up by the biggest percentage in history. Mortgage rates are down. I’m considering refinancing when rates hit 4.5% and no points. I’m keeping my fingers crossed that we get an Obama bounce and consumer confidence starts to roll in the right direction. In the meantime, I am watching my pennies and trying not to be wasteful or frivolous. Gas prices are great. Two months ago, it cost me $100 to fill up, and today I spent $40 and had to double check to make sure the pump didn’t shut off prematurely.

A lot of other people are watching the interest rates and thinking about refinancing.  I called Jim Askins at Fairway Mortgage to find out what people need to do so that they can be ready to pull the trigger when the rates are right.  Jim recommends the following:

If you have a mortgage with a rate at 5.75% or higher, get in line for the refinance event when it comes:

1.  Make full application with all substantiating documents

2.  The lender will order the appraisal.

3.  The lender obtains a full approval “clear to close.”

4.  Wait for your target rate to come into focus, and the lender will lock in and close the loan, sometimes in less than a week.

So, you have to be completely done, ready to close the loan.  This will allow your lender to lock on the best terms available for you.

Regarding Real Estate; the stats I put together this month go back to 2005. Check out the dramatic change. Prices have not declined here as much as other parts of the country. I predict prices will continue to fall at least till this summer. It’s a great time to buy! It’s a great time to buy!

I had a good year in 2008 up from 2007, and sold more than twice as many properties as the next Realtor. I look at my sales as a way to cheer me up when I feel sorry for myself or need reassurance and confidence in myself.

The key to success in 2009 is to think outside the box. Be creative, work hard, think positive, and don’t become complacent. I’m working on my goals for 2009. The key is writing them down. If you have not written your goals down this year, DO SO. I promise it works, but you must write them down with great detail.

I wish you all the best for 2009.