Jan
2
Mad World
Filed Under business, economy, mortgage, real estate | Leave a Comment
2008 is predicted to be one of the worst years for the American Economy.
It’s also an election year and the year of the Summer Olympics.
Mad World indeed.
The good news: not all predictions (iMac) come to pass .
Jul
9
Lowes vs Home Depot
Filed Under denver, personal finance | 4 Comments
Growing up in suburban NYC, there was one choice when it came to hardware stores - Pergament. When I went to college in upstate NY, there was one choice as well - Chase Pitkin. When I first moved to Denver, there were several choices including Builders Squares and Hugh M Woods.
Today, these stores don’t exist. They’ve been replaced by two home improvement mega centers: Lowes and Home Depot. These home improvement centers are growing at a rapid pace and leaving a closed hardware stores in their wake.
A few years ago we planned on remodeling our bath room but after getting two quotes from contractors we decided that our money was best spent on a Mexican vacation. This year we revisited the idea of remodeling our bath room but we decided to set a budget and keep things within reason since we’re planning to go to Mexico again next year. In order to keep things within reason, it means doing it yourself and going to Lowes or Home Depot.
To make life easier my wife and I ventured to Arapahoe and I-25 in the Tech Center where Home Depot and Lowes are about a block apart. Plus, if we didn’t like their selection, the Great Indoors, was a stone throw away on I-25 and County Line. We went shopping. I hate shopping but you don’t have to twist my arm to go to a home improvement center. We looked at flooring, vanities, sinks, counter tops, faucets, and just about everything in between.
This shopping adventure brought up a great question: How do you pick between Lowes and Home Depot? You can go with Nick Bakay’s “Tale of the Tape” method:
Number of Locations: Way too many (Home Depot) vs Not enough (Lowes) advantage Home Depot
Location of restrooms: At the Front (Lowes) vs At the Rear (Home Depot) advantage Lowes
Parking: Even on a busy day it’s not bad (Lowes) vs No matter what time you go, it’s just plain bananas (Home Depot) advantage Lowes
Checkout: Self Checkout (Home Depot) vs No Self-Checkout (Lowes) advantage Home Depot
NASCAR driver: Jimmie Johnson (Lowes) vs Tony Stewart (Home Depot) push
So far we’re even 2-2, so here’s the tie breaker:
Closing time: 10 PM (Lowes) vs 9 PM (Home Depot) advantage Lowes
So there you have it, Lowes wins 3-2!
Update: We ended up getting the vanity, sink, flooring and counter top at Home Depot. My wife simply didn’t care for my affinity to Lowes.
Jan
1
Choosing the right loan program
Filed Under mortgage | Leave a Comment
There is not a one size fits all formula for selecting the “RIGHT MORTGAGE LOAN” for you and your family. There will be many factors that will come into consideration. For example:
- Your current financial picture
- How you expect your finances to change
- How long you intend to keep your house
- How comfortable you are with your mortgage payment changing
There are so many loan programs from 30 year fixed , 15 year fixed, arms, balloons, interest only, and many more. The best way for you to make the best decision will be to meet with a mortgage broker and discuss your finances, your plans and financial prospects, and your preferences.
When choosing the right loan consider that the average person lives in their home for less than seven years and has refinanced their mortgage once or twice during that seven year span.
One of the most popular loan programs of the last two years is the Payment Option ARM or Pay Option ARM Adjustable Rate Mortgage, also called the 12 Month MTA. With deferred interest rates beginning at as low as 1.00% and the ability to pay off the loan at the pace of your own choosing, these are still incredibly popular mortgage loans for investors and customers looking to purchase or refinance their home mortgage.
Often your loan program will change when your needs change. A good broker will custom the loan to fit your needs.
It is important to know your goals. Your goals regarding your finances and your goals for your property. If you can clearly express these goals to your Mortgage Professional, he can be much more helpful in assisting you to choose the right loan program.
Research any loan programs and make sure you fully understand the requirements and any special program advantages or disadvantages before you commit to the loan. Your mortgage broker should be able to offer an informed product selection that would benefit you based of an initial consultation..
When choosing the right loan program, it is important to look at the bigger picture surrounding your finances. Many consumers tend to fixate on the 30 year fixed programs because they have not been properly exposed to the numerous loan programs that are currently available to them. Factors such as length of time you plan on being in your home, your current credit situation, current debt, and income will play a large role in selecting a tailor made loan program to suit your needs.
Choosing the right loan program is just as important as the interest rate associated with a loan. The loan program that is right for you may not be right for someone else. Each borrower’s situation is different depending on many factors. These factors need to be looked at in their present state as well as with an eye toward the future. There are many programs available through mortgage brokers that a borrower may qualify but choosing the right loan for your situation is important to your lifestyle and financial well-being.
Not knowing the industry, most people will lean toward choosing a 30 year fixed rate program. But if you only intend to live in the property for 3 to 5 year before moving up or refinancing the loan you can save thousands by choosing an arm or Hybrid loan program.
The right loan program for you today might not be the right one for you in 3 years. So when discussing your needs to the broker make sure you address the future as well. Often borrowers only consider today’s needs. Think about what your loan will look like in the next 5 years.
When choosing your loan program , your first consideration should be how long you plan to stay in the home . The second is if you plan to pay off the mortgage, how quickly you want to pay it off . Other considerations may include job stability, cash flow, and future goals.
Some of the mortgages that could potentially be right for you are the option ARM, interest only fixed or adjustable rate mortgages, fully amortizing ARM’s, or the new 40 and 50 year mortgages.
If you want to move into a home with a price slightly above what you can afford now, and you expect your income to increase in the next few years, a mortgage with an “Interest Only” feature may be what you need. With an “Interest Only” mortgage, the borrower makes monthly payments for the accrued interest, none for paying down the principal. Therefore, the monthly payments are lower than that of a fully amortized mortgage. The “Interest-Only” loan allows a home buyer to purchase the house he otherwise cannot afford.
Finding the right mortgage professional should be one of the most important factors in choosing the right loan program for you. By finding a knowledgeable and trustworthy mortgage professional they can help find the perfect loan program based upon what you want, your short term needs and your long term goals.
The right program isn’t necessarily the lowest rate possible. Let your mortgage professional know exactly what your plans are with the home and they, with your help, can find the perfect loan to fit your needs.
Sometimes your monthly payment is the biggest factor in choosing a loan. For example, if your spouse is currently in college and will graduate in 2 years, you may want a payment that is lower now but may rise in 2 to 3 years. If you plan on being in your house for many years, anticipate fairly level earnings, and want to lower your monthly payment a little, you may want to move to a longer term fixed rate loan.
Oct
31
Tomorrow November 1st between 7 AM and 7 PM…
The biggest issue for Colorado is Referendum C&D. Here’s a quick synopsis:
Referendum C - For the next five years there’s going to be reprieve of the Tabor Law which basically allows the excess state taxes to go back to the tax papers.
Referenendum D - We the people give the State of Colorado the right to borrow money to build out the infrastructure.
Read more about it here