Ages 25-44 Population of workers %2000-07 Monday, Jun 9 2008 

Fed Signals end to rate cuts Tuesday, Jun 3 2008 

Good afternoon everyone,

 

Important breaking news in the New York Times:  Fed Chief Signals End to Rate Cuts, To help brace the economy, the Fed in late April dropped its key rate to 2 percent, a nearly four-year low, but hinted that could be the last reduction for a while. Mr. Bernanke drove that point home again on Tuesday stating…

 

“For now policy seems well positioned to promote moderate growth and price stability over time,”

Higher Loan Limits Are Needed for FHA, Freddie Mac & Fannie Mae Monday, Jun 2 2008 

Higher Loan Limits Are Needed for FHA, Freddie Mac & Fannie Mae

The House of Representatives has done its part by passing reform proposals for FHA, Freddie Mac & Fannie Mae that make the increased loan limits included in the economic stimulus legislation permanent.  This is particularly important for states, like California, that have a high cost market. Evidence shows that the increased FHA/GSE loan limits are providing a much needed infusion of stability, liquidity and security into the market. If the Senate doesn’t insist on higher limits, the burgeoning recovery will be thrust into an unnecessary period of additional turmoil.

Don’t let the Senate stop progress through inaction. Tell Senators Boxer and Feinstein that realistic and permanent loan limits help all areas of the country and are needed now.

 

Financial Independence Is Not Beyond Your Reach Thursday, May 15 2008 

Join us on Tuesday June 17, 2008..meet best selling author, Douglas R. Andrew.  Author of “The Last Chance Millionaire”  ” Missed Fortune 101″ &  “Millionaire By Thirty” …Discover 23 common Money Myths, our treat!

Fed Announcement Saturday, May 10 2008 

Rent vs. Homeownership..Is there really a cost?… Tuesday, Apr 15 2008 

There are several different ways that first time buyers lose money by waiting to purchase. The first is loss of tax deductions. In most cases, people who lack a mortgage pay more federal and state income taxes than those who qualify for a mortgage deduction. You can use a mortgage calculator to illustrate this point. For example, assume that a buyer is currently paying $1,500 per month on a rental. If the buyer purchases a $300,000 property with $30,000 down and a fixed-rate 30-year mortgage of $270,000 at 6.25 percent, the buyer actually nets $24,262 more, assuming that appreciation keeps pace with inflation, the buyer owns the property for eight years, and is in the 28 percent bracket.

Another way renters lose money is through wealth accumulation, generally in the form of creating equity by paying down the loan and through appreciation. According to the Federal Reserve, the average homeowner between 1995 and 2004 had a net worth of $184,400, of which approximately $60,000 was due to home ownership appreciation. To account for the difference of $60,000 of wealth accumulation, a $200,000 house would have to decline by 30 percent. Thus, each year a buyer waits to purchase a median-priced home, they lose $6,000 in potential wealth accumulation.

An additional way that renters lose money is through increased interest rates. For example, on a $200,000 mortgage, assume that interest rates increase from six to seven percent. By waiting, the buyer’s payments increase by $1,578 each year causing a total loss (in payments and wealth accumulation) of $7,578. If interest rates increase from six to eight percent on that same loan, they will pay an extra $3,221 per year resulting in a total loss of $9,221.

2008 is the Best Year to Buy a Home in 35 years! Friday, Apr 11 2008 

Check this out… In April of 1973, mortgage rates were about the same as they are today. Since that time, we have only had mortgage rates this low during 2001 and 2002, the height of the seller’s markets where there was little inventory. In the last two major buyer’s markets, one in the early 1980s and the other in the early 1990s, the rates were much higher. When I started in the business in 1980, interest rates were as high as 21% percent. In the early 1990s, the rates were hovering in the 11 to 12 percent range. Thus, today’s buyer’s market, with exceptionally low mortgage rates plus a substantial supply of inventory, is the best time in decades to purchase

Popular Online Purchases Friday, Apr 11 2008 

E-Commerce Times…………….In March 1983, a husband-and-wife team orchestrated the world’s first “online” purchase: an IBM PC sold to a buyer in South America for $7,000…………………Today, The Nielsen Company reports that as of January 2008, 85% of the world’s online population (875 million people) have made a purchase over the Internet……………The most popular items purchased are:

 

  • books (41%)
  • clothing and accessories (36%)
  • videos, DVDs and games (24%)
  • airline tickets (24%)
  • electronic equipment (23%)

Notice that purchasing a home over the net is not on the list…………it takes that personal connecting…………that face to face………….the personal touch.

Popular Online Purchases Monday, Apr 7 2008 

E-Commerce Times…………….In March 1983, a husband-and-wife team orchestrated the world’s first “online” purchase: an IBM PC sold to a buyer in South America for $7,000…………………Today, The Nielsen Company reports that as of January 2008, 85% of the world’s online population (875 million people) have made a purchase over the Internet……………The most popular items purchased are:

 

  • books (41%)
  • clothing and accessories (36%)
  • videos, DVDs and games (24%)
  • airline tickets (24%)
  • electronic equipment (23%)

Notice that purchasing a home over the net is not on the list…………it takes that personal connecting…………that face to face………….the personal touch.

What’s Popular To Buy Online Friday, Apr 4 2008 

E-Commerce Times…………….In March 1983, a husband-and-wife team orchestrated the world’s first “online” purchase: an IBM PC sold to a buyer in South America for $7,000…………………Today, The Nielsen Company reports that as of January 2008, 85% of the world’s online population (875 million people) have made a purchase over the Internet……………The most popular items purchased are:

 

 

  • books (41%)
  • clothing and accessories (36%)
  • videos, DVDs and games (24%)
  • airline tickets (24%)
  • electronic equipment (23%)

Notice that purchasing a home over the net is not on the list…………it takes that personal connecting…………that face to face………….the personal touch.

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