Mortgage Rate Anxiety - CNBC

Mortgage Rate Anxiety - CNBC

Holiday Tipping: Stress-Free Guide to Holiday Tipping - CNBC

Holiday Tipping: Stress-Free Guide to Holiday Tipping - CNBC

Rent an Office or Work From Home?

Until a new business is off the ground, many company owners find their “home office” as a spare bedroom in their basement. Not only is that good money management, but working from home can have many benefits.

There is a stigma attached to people from working home. Some think that a business with a residential address isn’t a “real company” and that if you work from home you don’t have a “real job.” As an entrepreneur, you realize that a business model doesn’t necessarily mean a bona fide store front. There are many products and services that are managed over the phone or at the client’s location.

Although you can experience many different distractions at work, a home office can experience interruptions that can ruin your bottom line. Set boundaries before family members become problems and feelings get hurt. Boundaries can also include preventing clients from thinking you’re available 24/7.

Working from home isn’t for everyone and it takes a lot of self-discipline and gumption. It can be tempting to take lots of extra time off just as it is easy to work morning, noon and night. Find a balance between the two. http://sntk.in/0d783507

Mortgage Rate Spike: How High Will They Go? - CNBC

Mortgage Rate Spike: How High Will They Go? - CNBC

Was the latest Q E Really Needed?

In order to stay abreast of the rate changes in volatile markets, most mortgage originators get some kind of rate alert subscription. There are many, I am sure, and my mortgage company gets alerts as well. I found this morning’s commentary particularly interesting on two fronts.

Based on the weekly jobless claims that come out every Thursday, the morning commentary suggested that albeit still at unacceptable levels, the jobless claims seem to be stabilizing which implies that companies are not firing as many people. It went on to suggest that companies are not hiring either! What I am not sure about is whether the information implies much of anything. I think that perhaps the author may have inferred more that the data implied! There are still a lot of people out of work and losing their jobs. Just heard of one yesterday!

My second comment is relative to the private meeting yesterday, attended by Ben Bernanke and a few Senators. Our alert commentary, along with several news releases, stated that Mr. Bernanke said in that meeting that QE II would add 700,000 to 1,000,000 jobs over the next two years.  It also suggested that the Fed is convinced  that the additional “easing” will cause business’ to spend more, consumers to buy more and create motivation for those interested in buying a home to do so before rates go up!

So, as to inflation… keep adding liquidity (which devalues the dollar) and low inflation will no longer be a problem. Moderate inflation will be, however!  But I am not sure consumers will buy more, since their dollar will buy less with the devalued currency.  As to rates going up… too late. They are already going up! Today, mortgage interest rates are probably a half percentage point higher than they were a month ago!

Bottom line, maybe Wall Street likes the idea of QE (jury still out on that), but not sure it is helping Main Street! Once again, the little guy (middle class individuals) gets the short end… I guess time will tell who is right. Can we afford to wait and see!

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This is funny! Work Out and then Stock up!

Click on the link and see if you get the same reaction I did... get out of bed early, go work out and then have a Krispie Kreme on the way home! Shape up and stock up in the same place!

This could be a terrible business decision on the part of the owners of the gym or perhaps a very clever one! Take a look at the photo; link below! Enjoy...

The Worst Thing You Could Possibly See At The Gym (PHOTO)

Is It Time to End the Mortgage Tax Deduction? - CNBC

Is It Time to End the Mortgage Tax Deduction? - CNBC

 

"Sales are what you do for people, not to people."  I recently read an article in Success Magazine written by Zig Ziglar, which is where that quote comes from. The article is entitled "Everyone Sells".

I believe that title epitomizes everything we do. A long time ago, I went to do in estimate for a couple that had been referred to me by a friend. I was in a "service" business at the time and after listening to their desires, needs and concerns, I looked over their property and pointed out what I saw as challenges and some alternatives and finally suggested that I needed to sit down and spend a little time to determine exactly what I could do for them and what it would cost. The lady of the house replied by saying that she appreciated my time and my input. She said that I had sold myself and as long as my estimate was in their price range, they would give us the work.

As I read Zig's article, I was reminded of the fact that we are selling (if nothing else, ourselves) whenever we engage in an effort to assist another, whenever we make a commitment, whenever engage in a conversation or relationship!

http://www.successmagazine.com/everyone-sells/PARAMS/article/690

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A Bipartisan Whitehouse Panel appointed to find ways to cut the Federal deficit has laid out their first proposals. One of them involves Social Security and another sets up a debate for additional or increased taxes! So will this mean more taxes for you? Maybe retirement will not come as soon as you think? Read the Wall Street Journal article:  Whitehouse Panel

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Has the Federal Reserve lost control?

Has the Federal Reserve lost control? Are they doing too much to stimulate the economy? There are those that say yes. And, there are those that say too much action by the Fed could cause inflation to enter into the picture more rapidly that would be expected! You can read the article published in the Wall Street Journal. Here is the link:  Has the Fed lost control?

Consumer Guide to Credit Scores and Credit Reports is now available Online

On Wednesday, Nov. 10, 2010, the Federal Reserve posted an consumers' guide to credit scores and credit reports. Information in the guide, which can be found online, includes: defines a credit score, how creditors use it and why you must protect your credit history.

It is meant to give consumers a basic understanding and alert them to information they may receive from their lenders.

The guide unveiled Wednesday is meant to provide consumers with basic information about their credit scores and credit reports so they can better understand the new information they might be receiving from lenders.

Check out the Consumer Guide   . It is simple to understand and does a good job explaining!
You can read the Journal article if you want. Find it here .

Refinance in Less than a Year?????

The article below was printed in the Wall Street Journel and suggests that refinancing in less than a year may be worthwhile. Those of you who know me well, know that I have always suggested that it is a personal decision. For some, if they could put fifty dollars per month in their pocket, they will do it. I have other clients that suggest it is not worth refinancing unless they can save two hundred dollars or more!

The article is printed for your review and with the hope that we can get some commentary as well. Let me be clear by stating that I do not necessarily agree with refinancing for a lower monthly payment, except for specific circumstances. If you can save a significant amount of money and you have recently refinanced, then you are not adding too much interest paid to the lender to your overall costs for the money you originallly borrowed! And, I believe that is the one thing that lenders and experts on the subject continually forget to consider when advising someone if refinance makes sense.

If you have a $200,000.00 loan witha 6% interest rate and have been paying on the loan for ten years, you would still have a loan balance of approximately $167,000.00 but you would have already paid over $111,000.00 in interest on the loan. Well, if you refinance at that point and drop your interest rate by 1.5%, in the end, you will have paid another set of closing costs and ultimately, you will have paid more for the home than had you continued to pay on the original mortgage. Remember that mortgages are front loaded and when you refinance, you will make the bulk of the interest payments on the new loan in the first half of the term.

The article has many good points and a refinance may be helpful for you, but don't be fooled into thinking that if it is good for your neighbor, it is good for you too! Have questions, shoot me an email ! Will be happy to discuss your personal situation!

Here is the article!

Refinance in Under a Year? Maybe
by Amy Hoak

Tuesday, November 2, 2010
provided by
Wall Street Journel

Low mortgage rates have some homeowners considering refinancing, even if it has been less than a year since they last refinanced or bought their home.

Rates have been hovering near all-time lows, with the 30-year fixed-rate mortgage averaging below 4.25% for the past three weeks, according to Freddie Mac's weekly survey of conforming mortgage rates. But they could be ready to head up: Last week, the Mortgage Bankers Association said rates on 30-year fixed-rate mortgages look poised to rise in the year ahead.

In short, those who aren't thinking about refinancing probably should consider the possibility, if they have the necessary income, credit and home equity.

That is true even if you are a borrower who secured a 5% mortgage rate on a 30-year fixed-rate mortgage last year. Assuming a loan balance of $200,000, if you could refinance into a 4.25% mortgage today, the savings would be about $100 a month, said Greg McBride, senior financial analyst for Bankrate.com. It could take about 3½ years to recoup the costs of the refinance, but those who bought in 2009 presumably would plan on staying in the home long enough for the refi to pay off, he said.

"If they just bought the place in the last year or so, chances are their timetable hasn't changed dramatically, yet mortgage rates have—and that opens the window of opportunity to refinance," Mr. McBride said. Those homeowners presumably still plan to live in the home for a number of years, and therefore have plenty of time to recoup the costs of a refinancing.

When it comes to refinancing, "the biggest decision is how long is it going to take to recapture" the cost, said Cameron Findlay, chief economist for LendingTree, an online marketplace that connects consumers to lenders. "If you bought a year ago, you're probably a good candidate."

For those who refinanced within a year, the likelihood that they will pull the trigger again isn't quite as high. "There are many homeowners for sure who don't have the tolerance for paying two sets of closing costs, because it's a lot of money out of pocket now for a modest monthly savings that will take some time to completely recoup," Mr. McBride said.

But Chris and Emily Gessner decided the amount they were able to save was enough for them to refinance for the second time this year. They also were able to secure a "zero-cost" mortgage, where the upfront costs normally associated with mortgages are folded into the new loan either through an increased loan amount or through a higher interest rate.

Last month, the Gessners refinanced the loan on their Chicago home into a 3.75%, five-year adjustable-rate mortgage. They last refinanced in April.

With each refinancing, they shaved more than $100 off their monthly payments, Chris Gessner said. "We wouldn't do anything for less than a $100 difference. That was sort of the benchmark," Mr. Gessner said. It is too much of a hassle to do it for less, he said.

Should you refinance your young loan? Consider the following two points.

• Find local rates and home values: Mortgage-interest-rate surveys such as Freddie Mac's give national averages each week, but market and lending factors will cause rates to be higher in some parts of the country and lower in others, Mr. Findlay said. Understand what the going rates are for your area.

The same goes for home values. Before shelling out money for an appraisal, look at online listing sites and talk to real-estate agents or appraiser friends who know how home prices in your area have changed since you got your mortgage. If you don't, you could be getting your hopes up in areas where home prices are still declining, said Kevin Marshall, president of Clear Capital, a real-estate valuation and data provider.

"It's tempting to look at the national levels and gain confidence or lose confidence," he said. Don't be fooled by averages, and look at local trends. If the value of your home has dropped since your last loan closed, it could make refinancing more difficult or perhaps not worthwhile.

• Closing costs: In general, closing costs will typically be around 1.5% to 2% of the mortgage, Mr. McBride said, so assume they could add up to $4,000 for a $200,000 loan. Costs also vary by location.

It is possible to find a "zero-cost" mortgage like the one the Gessners chose, but be aware that you will pay those costs in another way, either with a higher loan amount or a higher interest rate.

In a falling rate environment, tolerating an interest rate that is a little higher is acceptable to many borrowers—including the Gessners—if it means they won't have to cover the costs out of pocket, said Dan Green, a loan officer with Waterstone Mortgage in Cincinnati and author of TheMortgageReports.com, who handled the Gessners' refinancing.

"Instead of getting the absolute lowest rate available and paying closing costs to get it, homeowners willingly accept a slightly higher rate. In exchange, all closing costs are paid by the bank, on behalf of the homeowner," Mr. Green said.

For example, a 4% mortgage could end up rising to 4.25% if the loan was a zero-cost mortgage, with $3,740 (the average closing cost for a $200,000 mortgage, according to Bankrate.com) paid by the lender, he said.

But as Mr. McBride points out, by paying closing costs out of pocket instead, "you will be able to reduce your monthly payment most significantly

An Article published in the Washington Post does a good job of explaining what the Federal Reserve did on November 3. Here is the link. I am not endorsing the Fed's actions, however, it does look like it has had an effect on Mortgage rates in today's market. We will have to wait and see over time how rates fare!

Here is the link:

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/03/AR2010110307372.html

http://sntk.in/0d783507

Nonverbal Communication: The Forgotten Job

Interview Tip

Some job interview tips are obvious: bring a resume, show up on time, wear a suit, etc. But, what does your body language say about your preparedness? What your fidgety hands say can speak volumes when compared to your polished and practiced interview question responses. In fact, your nonverbal communication can be the difference between “Welcome aboard!” and “Thanks for your time.”

Body language comprises as much as 55 percent of the force of your response to interview questions, whereas the verbal content (what you actually say) only provides 7 percent. Paralanguage (tone, laughter, gestures, and facial expressions) represent 38 percent of the emphasis. If you do the math, 93 percent of what you’re conveying did not come out of your mouth.

As soon as you’re seated in the interview room, do a head-to-foot mental check to ensure your nonverbal communication is in control:

* Head and eyes up are looking at the person asking the questions.
* Back straight (no slouching).
* Keeps hand stationary (unless you’re using them to help make a point during a response).
* Legs together and feet flat on the floor.
http://sntk.in/0d783507

Taking Accountability and building successful systems

Taking accountability for your actions is one of the most important steps you can take as an Agent or business person. This doesn’t mean taking blame for something you didn’t do; it means refraining from finger-pointing if you lose and congratulating those around you for helping you win.

Also, learning from failure is a stepping stone to success. If you’ve tried to accomplish a task but failed, then you know what NOT to do to reach your goals. Reassess your progress and the obstacles that prevented you from achieving the goals and then set new ones.

Next, don’t compare yourself to others. If another Agent or sales person closes two deals this month and you’ve only closed one, then change your thinking to “I have set one family on the path to financial freedom” or "I have helped one family to eat healthier"… or whatever your field of endeavor…  This changes your point of view to more of a take on how you impacted the big picture — not how much you failed when compared to someone else.

This also goes with the old saying that expresses comparing yourself to others perfectly: “Sometimes you’re the windshield. Sometimes you’re the bug.” Once you accept the fact that you can’t always win but you can always be building, then there is less blame and more focus on moving forward.

Gold’s Role in the Monetary System of the U.S.

For most of the 19th century, the monetary system of the U.S. was based on bimetallism (gold and silver). This monetary system uses a standard economic unit of account equal to a fixed weight of gold. A full gold standard was in effect from 1900–1933, which provided for full convertibility of currency into gold coin. During this time, the volume of paper money in circulation was closely related to the gold supply held by the government.

With the passage of the Gold Reserve Act (January 30, 1934), the country was placed on a modified gold standard. This marked the end of a gold-based monetary system in domestic exchange. The Gold Reserve Act required that all gold and gold certificates held by the Federal Reserve be surrendered to the Department of the Treasury. This forced surrender of gold meant that it was now illegal for private citizens to be in possession of gold money.

Since 1937, the Department of the Treasury has maintained it gold bullion depository at Fort Knox (Kentucky). The Gold Reserve also changed the nominal price of gold from $20.67 per troy ounce to $35. Since the early 1970s, virtually all U.S. currency (paper and coin) is essentially fiat money (declared to be legal tender although it cannot be converted). This is why the message “This note is legal tender for all debts, public and private” is printed on the bills in your wallet.

With the absence of gold, coins are made of copper and another element (zinc or nickel). Although it is sometimes know as “paper money,” bill currency is composed of 25 percent linen and 75 percent cotton. Ironically, currency and coin are less widely used as a means of payment than checks or debit/credit cards. http://sntk.in/0d783507