Are you at Home? A very different #BestMortgageBook post

Greetings readers!  Long time no blog, sorry about that. What a ride! This year has been quite an amazing experience! I apologize for not posting more often this year. With the success of my #1 bestselling book (Thank YOU readers!), being nominated for a Pulitzer Prize in non-fiction literature, TV & Radio appearances, teaching first time home buyer seminars and of course serving my clients as a licensed mortgage loan originator I have been a bit busy. I have had the privilege of helping so many first time home buyers. It's such a joy to be at their loan closing and experience their joy, pride and sense of accomplishment with them. Wow! I have the best mortgage clients and am so blessed when they also become friends. And don't forget the investment property I bought and rehabbed earlier this year.  It's all done and now both sides of my new duplex are rented and cash flowing. I love real estate!

Ok, so now that you are updated on what's new with me....why am I choosing to invest time blogging again after my internet absence? I'm still just as busy as I have been, as I am constantly working to improve myself and help more people. Well, 2 reasons; the first reason I'll get to in a minute. The second reason is that I didn't realize how many of you are reading my blog. You don't comment often, so I didn't know how many of you have actually been reading and enjoying the information. I am so glad to see that so many of you find my blog posts and book a helpful resource for you. I realize that mortgages are not the most interesting topic, so I do try to make it fun & interesting while saving you thousands of dollars. My mission is to save as many people as possible as much money as possible and for you not to have too much trouble with your paperwork while going through the mortgage process. Oh, and most important in that experience, that you actually get approved and close on your loan for your home. Please feel free to email me at info@bestmortgagebook.com with any questions. I'm happy to answer you. Also, I welcome your positive comments and questions on my blog. 

Now back to reason #1 for my blog post today. Are you at Home? What is Home?  What does Home mean to you? Ah, Home, lots can be said about the word Home. There are many little phrases and cute anecdotes; we've all heard, "home is where the heart is", right? To me, home is where I am at peace. If I am at peace, my heart will be there as well. This can be anywhere, however, to me it's most enjoyed with those I love around me and the bonus is my creature comforts.

I've had the tremendous pleasure of traveling all over the globe in the past few years and visiting many friends in their homes as well as staying in hotels. While I enjoy the convenience of someone else making the bed and cleaning my room at a hotel, the warmth, kindness and generosity of friends of course always wins me over, as I am addicted to good stimulating conversation and the opportunity for genuine human connection. Those cherished moments in a friend’s kitchen while cleaning up after making dinner together or brewing morning coffee is the glue that binds our friendships and continues to stimulate my mental and emotional growth. I am so grateful for all those in my life who have hosted me at their homes. I am so blessed to a variety of friends who live in a variety of places who have welcomed me into their homes. I have friends that own their homes, friends that rent their homes, friends that live in the city, in the country, on the ocean, on a river, on a boat, in a river millhouse, on a vineyard, in the mountains, in the suburbs, in a condo, in a single family home, in a townhouse, all varieties.

This morning, as I watch the beautiful sunrise come up over the Atlantic Ocean at a generous friend's home and have the warm feeling of peace in my heart I invite you to have a dialog with me.  What does HOME mean to you? And what is the benefit of owning that home to you?  For some it's financial security. For others it's knowing that it's theirs, that peace of mind and comfort of their worldly possessions being in one place and that they can personalize it anyway they see fit. For others it's the experience of growing roots and becoming involved in a community and contributing. I'm also personally fond of the pride of home ownership as well. There's also something to be said for making your very own space perfect for you. How about all of the above? In your home, you can create whatever you want and contribute to your community in however you see fit. You have the option to choose.

So, please tell me what does HOME mean to you?  If you own, tell me why you own. If you rent, let me know why you want to own your home.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube Channel: https://www.youtube.com/c/ElysiaStobbeMortgage

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How will the Federal Reserve Raising Interest Rates Impact You?

On December 16^th,  2016 Chairman Janet Yellen announced that The Board of Governors of the Federal Reserve (Head of the Bank of the Banks) were raising interest rates. 

http://www.federalreserve.gov/newsevents/press/monetary/20151216a.htm

Chairwoman Janet Yellen is the first woman to hold this position. Chairwoman Yellen took over the position from Ben Bernanke and was sworn into her office on February 3^rd, 2014 after the senate confirmation in January 2014.

The Prime Rate adjusted in sync with the announcement.  However, most of the loan market already expected this and mortgage interest rates had risen about 0.25% in the 10-14 days before the announcement in anticipation, so there was actually little movement in long terms rates at the time of the announcement.

But, what does this mean for you? What does this mean for your clients? What is the actual cost?

The Federal Reserve has already raised interest rates by 0.25% and plan to continue raising rates 0.25% until next December so there will be a full 1% increase in interest rates. That doesn't sound like much, but for most people it actually adds up. Take a $300,000 home for instance. For each 0.25% increase in the interest rates on a $300,000 loan, that's an extra $43.56 a month. So over, the next year, if you are buying a $300,000 and the interest rates go up by 1%, that's an extra $174.24 a month in interest you'll be paying. That's easily a student loan payment, a car payment or a nice dinner out. If you look at it on an annual basis, it's over $2,090 a year in additional interest costs, which is over $10,400 over the next five years!!  Now, you may think, well, that’s more of a tax deduction for me since it’s interest. Be sure to check with your CPA to see how that change will really impact your bottom line. But I say, a penny earned is a penny save, and even more important, $2,000 saved is by buying now is free money!

So, if you are considering buying a home, do it now! Get pre-approved and start planning now.

These interest rates are for the purposes of example only.  You are not guaranteed these rates, you may or may not qualify for a loan.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTubeChannel: https://www.youtube.com/c/ElysiaStobbeMortgage

Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe

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For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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How do interest rates really impact your buying power?

What can you really buy for your money?  Well, it depends on where you are buying and what type of property you are buying. This can vary greatly from state to state as well as from the city to the suburbs. I'm a big proponent of considering your future housing needs as well as your current financial situation before you decide to get pre-qualified and start your new home hunting. There are so many factors to consider, such as how long you are going to stay in your area, do you plan on starting or growing a family and how much disposable cash you have for a down payment.

Obviously, the lower th einterest rate, the more home you can buy. But by how much?  Well, for a $300,000 loan, the principal and interest payment for a 30 year fixed rate of 4.0% is $1432.25.  For every change in 0.125% in interest rate, the monthly payment changes by $21.54.  Not as much as you thought, huh?  Yeah, people tend to be a bit over dramatic when it comes to interest rate. In my humble opinion, the most important thing to consider is, "Can you afford the payment comfortably?"

There's also a great article today that addresses that, On The House:  On mortgage rates and what gets people to buy

These interest rates are for the purposes of example only.  You are not guaranteed these rates, you may or may not qualify for a loan.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

For more mortgage tips check out our website www.bestmortgagebook.info
For video mortgage tips and tools subscribe to our YouTubeChannel: https://www.youtube.com/c/ElysiaStobbeMortgage
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe
For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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TRID! What does it mean to you?

TRID execution is quickly approaching!  What is TRID? TRID stands for TILA (Truth-In-Lending) RESPA (Real Estate Settlement Procedures Act) Integrated Disclosure. TRID was delayed earlier this year, pushed back from an August 1, 2015 start to this week.

What does this mean to you? TRID brings with it additional timelines designed for consumer protection and new forms. Expect your home purchase process to slow down a bit. From what I'm hearing, expect the typical closing time to slow from 30 to 45 days.

On October 3, 2015, new documents will replace the GFE and HUD-1. The GFE will be replaced by the Loan Estimate. The HUD-1 will be replaced by the Closing Disclosure.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

For more mortgage tips check out our website www.bestmortgagebook.info
For video mortgage tips and tools subscribe to our YouTubeChannel: https://www.youtube.com/c/ElysiaStobbeMortgage
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe
For sponsorship opportunities go to:  sponsorbestmortgagebook.info
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Published again! Here are 5 Common Rent To Own Mistakes You Don't Want to Make courtesy of Ivestopedia

Published again! Here are 5 Common Rent To Own Mistakes You Don't Want to Make.
http://www.investopedia.com/articles/personal-finance/083115/avoid-5-most-common-renttoown-mistakes.asp

Grab our new kindle version of my #1 Best Seller on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/c/ElysiaStobbeMortgage
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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Will the Federal Reserve Raise Interest Rates This Week? What does this mean for you?

This is a big week for economic news, particularly when it comes to interest rates. This Wednesday and Thursday, The Federal Reserve will meet to decide if the economy is stable enough to raise interest rates. The Federal Reserve has chosen NOT to raise short term interest rates for the last 7 years. Yes, 7 years!  Why is there a buzz that The Fed will raise interest rates now? There are several signs that our economy has stabilized, the first of which is the unemployment rate. There's lots of buzz on this regarding if the unemployment numbers are accurate or not. The biggest concern is that people who are unemployed are no longer counted in the statistics after six  months. So, if you have been unemployed for six months and 1 day you are not included in the unemployment numbers. That's some funny math.

Binyamin Applebaum wrote an interesting article for the New York Times, published today
entitled The Fed's Policy Mechanics Retool for a Rise in Interest Rates. Binyamin's article has some great points about how The Fed's plans may affect lending and our economy.

Seems to me if you are in the process of purchasing a home or refinancing, it's a good time to lock your interest rate!

Grab our new kindle version of my #1 Best Seller on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/c/ElysiaStobbeMortgage
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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Should You Buy an Investment Property or Invest in a REIT?

How do you decide if you want to be a landlord or not? Well, there are several things to consider...first of all, how active do you want to be in your investments? How active should you be in your investments? If it's not your full time job, you still need to pay attention to your investments. This includes your stocks, bonds, retirement accounts, real estate investments, etc, where ever your money is kept. If you don't pay attention to it, who will? If it's not your full time job, even more reason for you to check in. This can be weekly, monthly or daily depending on what vehicle(s) you invest your money into. I have a third party property management company handle my rentals and I check in with them at least once a month. In addition, I review the #'s every month to make sure we are on track with rents and renewals. You may need to do this more or less depending on your preference, number of rentals and if you use a property management company or not. For the stocks that I actively trade, I check on daily. I also spend a few hours every month on my asset allocation and overall performance.

So, what does this mean to you? You need to do what is best for you. How much time do you have to devote to your investments? Do you want to add real estate to your investment portfolio? According to Barron's recent article, "The Allure of Mortgage REITS" by Amey Stone some REITS are paying up to 12% annual yields and the are on sale right now for deep discounts. So, this begs the question, if you can get 12% returns with little or no time investment, why would you build your own real estate portfolio?

A REIT can offer you a (hopefully) diverse portfolio. This can be across property types such as commercial or residential single family homes or multi family. Or  it could be spread among properties in various markets across the country. Some REITS are traded like stocks, some require a minimum investment and can be difficult to get out of, so do your homework.

If you buy your own real estate investment properties you have a few models to choose from...buy and hold, fix and flip or a combination there of. Things to consider include available cash, available time, access to general contractors and  construction teams (if you are considering fix & flip), opportunity to leverage, return on investment goals and much, much more. You can start with one rental or 2nd home that you rent out when you're not using it, see if you have a taste for being a landlord and go from there.

I don't suggest you jump into either real estate investing or a REIT without doing your homework. Real estate can be an amazing investment and it's not for the faint of heart.I hope you find this information thought provoking. If you have questions email me at info@bestmortgagebook.com.

Grab our new kindle version of my #1 Best Seller on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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