Appreciation in the Used Car Market – Wow!

(My guest blogger for this issue is Kurt Schlaefer of Centennial Leasing and Sales)

Recently, I’ve had many questions about used car pricing. Most people assume that, because it’s a bad economy, dealers should be selling their used vehicles really cheap. Just the opposite is happening because of very low supply. In the last twenty years, your vehicle’s value has dropped each year due to increased mileage and age. However, last year your current vehicle may have actually increased despite it being a year older with higher miles. It may be a great time to trade it in, if you’ve a mind to move into something new (or at least newer), or different.

I keep my old National Automobile Dealer Association (NADA) books for one year to verify what I see going on in the car market, based on supply and demand. To give you a mini-snapshot of what’s happened in the used car market in Denver over the last year, I’ve taken four sample 2008 vehicles and compared book values from January 2009 to January 2010, below:

1. ASIAN SAMPLE -
2008 Toyota Highlander Sport V6 4×4 w/Pwr Seat/3rd Row Seat/Rear Air (Warranty-3 yr/36k)
(7 Japanese Mfgs – 40% of the new 2009 USA Mkt)

	JAN 2009	JAN 2010
MSRP – $33,573.00	(1 yr old -12.5k miles)	(2 yrs old – 25k miles)
NADA Clean Trade-In Value -	$24,100	$25,300
NADA Retail Value -	$27,250	$28,725

2. ASIAN SAMPLE -
2008 Hyundai Santa Fe SE V6 AWD no Pwr Seat/3rd Row Seat/Rear Air (Warranty-5 yr/60k)
(1 Korean Mfg – 7% of the new 2009 USA Mkt)

	JAN 2009	JAN 2010
MSRP – $28,555	(1 yr old -12.5k miles)	(2 yrs old – 25k miles)
NADA Clean Trade-In Value -	$20,450	$19,725
NADA Retail Value -	$23,650	$23,525

3. AMERICAN SAMPLE -
2008 Ford Explorer V6 XLT 4×4 w/Pwr Seat/3rd Row Seat/Rear Air (Warranty-3 yr/36k)
(3 Mfgs – 44% of the new 2009 USA Mkt)

	JAN 2009	JAN 2010
MSRP – $32,320.00	(1 yr old -12.5k miles)	(2 yrs old – 25k miles)
NADA Clean Trade-In Value -	$17,475	$18,500
NADA Retail Value -	$20,350	$22,250

4. EUROPEAN SAMPLE -
2008 Volvo XC90 3.2L AWD w/Pwr Seat – no third row seat (Warranty-4 yr/50k)
(7 Mfgs – 9% of the new 2009 USA Mkt)

	JAN 2009	JAN 2010
MSRP – $38,805	(1 yr old -12.5k miles)	(2 yrs old – 25k miles)
NADA Clean Trade-In Value -	$25,550	$26,050
NADA Retail Value -	$29,125	$30,125

Traditionally, all of these vehicles would have dropped at least several thousand dollars in value during their second year. However, most of these actually increased in value. Demand for these vehicles has somewhat increased, but the primary cause is that supply has plummeted.

Call me at 720.271.8277 if you have any questions, or if you think you’d like to look at vehicle changes sometime this year.

Kurt Schlaefer
Centennial Leasing and Sales
67 Inverness Drive East, #100
Englewood, CO 80112
(720) 271-8277 – cell
kschlaefer@centleasing.com

Kurt Schlaefer graduated from the US Air Force Academy in 1970 and married Joan under the sabers the very next day. He left the Air Force in 1983 to better take care of his family and young children. ”We’ve owned several businesses and worked together since then to raise a family. We’ve enjoyed helping individuals and commercial clients and their referrals find new and used quality vehicles to lease or own since 1990. We find “CARS FOR PEOPLE” not people for cars”. Competence and Integrity are paramount. 

Stella’s Story – Part II

Stella’s Story – Part II
(I finally found a local loan modification expert!)

Remember Stella? She’s my friend who has been doing EVERYTHING asked of her to get a loan modification, only to hit roadblock after roadblock. Therefore, I was so excited when I heard her loan mod was finally going through with her lender, (this is only because a HUD counselor stepped in). Unfortunately, I then learned that she’s still struggling with getting it done. I’ve been digging and digging to find a licensed loan officer who specializes in loan modification, and who also happens to be local. After a lot of searching, I finally found one. Stella and Bridget Raab are working together now, so stay tuned.
 
As far as loan modification statistics go, I heard on NPR yesterday that the number of loan modifications that have taken place through HARP (Home Affordability Refinance Program) is 110,000. This program is set to continue through 2012. I’ve also heard that HUD and Treasury officials say they are showing they mean business about pushing for more loan modifications by sending personnel to lenders’ offices to monitor the process.
 
The program allows lenders to set up three-month trials under which qualified, at-risk homeowners can pay a lowered monthly payment.
 
December numbers released Jan. 19 show more than 1.1 million homeowners have been offered trial modifications since the program began. More than 854,000 of the 900,000 homeowners in trial modifications have received monthly payment reductions of at least $500 under this program.
 
If you know anyone who is struggling with their house payments, and needs a loan modification, here is Bridget’s information:

Colorado Loan Modifications
Bridget Raab
303-520-6049
braab@hrc-corp.com

GREAT NEWS FOR PEOPLE NEEDING MORTGAGE HELP!

GREAT NEWS FOR PEOPLE NEEDING MORTGAGE HELP!

Anyone who is facing missed or reduced mortgage payments, and/or foreclosure should immediately get on the phone with their current lender and try to re-structure their loan. Yes, I’m sure you’ve heard this before and maybe have heard of lenders not being quite so helpful. This blog installment covers some important steps you can take to protect your home and your credit. But WAIT…THERE’S MORE!!!! Read on to find out about an effective, free resource available to struggling homeowners. I just learned about it and I can’t wait to share the good news with others. Be sure to read through the factual info to “Stella’s Story – Part 1″, below.

1. Reality check, please!

Most lenders won’t help you re-structure/modify unless you prove hardship. You have to have a job. This comes in the form of a missed payment or two, OR a process in which the homeowner has to show the lender all of their bills to prove they can’t pay. Either way, it’s a tedious process and one that will require follow through. The biggest obstacle is the homeowners themselves because often, they get so discouraged and frustrated that they give up. This is the most important piece – they must never give up. Take notes, write down who you talked to (i.e. numbers, dates, times etc.). Ask for supervisors; call every day. It’s worth the time and aggravation to try and save your home, not to mention your credit.

Once a homeowner is 90 days late, the foreclosure process will be started. From there, there is a certain amount of time (75 days or period of redemption), where a homeowner can pay the default payments and potentially save their home from foreclosure. Most often, people can’t pay, so they go into default and it’s almost impossible to stop it.

Short sales – this is when someone knows they can’t pay, but before their home goes into foreclosure, they list their property and have the bank agree to the offer.

2. How do these things impact your credit?

Foreclosure will be on your credit for 10 years. Under current guidelines, a conventional lender will not lend to you for 5 years.

Short sales will also be on your credit for 10 years. Under current guidelines, a conventional lender will not lend to you for 4 years.

Late payments – This is ideal and the easiest to repair. Most likely, if you’re late on your mortgage, no one will lend to you for a year, maybe more, but certainly less than 5 years. Hence, this is the reason homeowners need to put their pride and fear aside and tackle their challenge head on with their lender so they can protect their future.

3. Where’s the GREAT news? Read on about Stella:

 

Stella’s Story – Part 1

A close personal friend of mine, “Stella”, is going through a modification right now. She is a smart, beautiful, and successful woman, who has fallen on some hard times due to her industry. This can happen to any one of us. Because of our mutual trust, Stella has allowed me to tell her story in hopes that her experience will help others. Here are the details:

1. Stella called her lender for help BEFORE she was late or missed a payment, but this story applies to anyone who isn’t being foreclosed upon (i.e .has missed payments etc.).

2. Stella’s lender had to analyze her financials and determined that, because Stella was employed, but not making enough to cover all of her bills, they would agree to reduce her mortgage payment temporarily while they were trying to qualify her for a loan modification. Their formula was 31% of her income.

3. Stella did this for two months, but the deal included the following condition, Stella needed to call each time she was going to pay. On the third month, Stella was in for a nasty surprise.

4. Stella was told by her lender that IF Stella could pay the lender $1,800 now, they would continue to consider a loan modification.

5. Stella says, “ARE YOU KIDDING ME? I DON’T HAVE $1,800, WHICH IS WHY I’M TRYING TO MODIFY MY LOAN!”

6. The lender representative said in response, “You need to stop spending so much money on food.” (Don’t get me started….)

7. At this point, Stella was furious. But she had come this far and was determined to figure this out.

HERE’S THE GREAT NEWS:

Stella found this website: http://makinghomeaffordable.gov. She clicked on: “Find a Counselor” (Tab 4, at the top) She called the 800 number: 1-888-995-HOPE (4673). Stella and the counselor called Stella’s lender on a 3-way call. Magic happened. – After 10 minutes on hold, magically, the lender decided that Stella should be in the loan modification program without paying an additional $1,800.  The counselor is paid by the government. The government has been lending money to banks for this very reason. The counselors are the lenders’ check and balance so USE them. We are all paying for this.

I can’t thank Stella enough for finding out this information. I’m in this business and didn’t know about this resource. I encourage you to please send this information to everyone in your database. Someone you know, or someone they know is in trouble and they may be able to get some real help. As Stella’s story unfolds, I will continue to update you.

If you’re in trouble, or facing it, the best thing you can do is get a modification, and from there, learn how to manage your credit and finances by aligning yourself with a good financial planner, mortgage professional, CPA etc. Please contact me and I will connect you!

Megan McDonald, Licensed Mortgage Planner Excel Home Lending
383 Inverness Parkway, Suite 130
Englewood, CO 80112
Cell: 303-717-9995
Off: 303-790-2022
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com
http://twitter.com/megmcd

Holiday Credit Card Tips

Summary:
The jury is out on whether credit cards are good or evil. Some people are choosing to cut up their cards and use cash. I think in some cases and for some people, this is a great choice. For most, the reality is that the USA functions on credit, and you have to have good credit if you want to buy a house, a car, and often to get a job. If you know a bit more about credit cards, you can get ahead and stay in a powerful consumer position – educated and informed. Here are some things to be aware of when considering opening or using a credit card:1) Department store credit cards don’t offer real savings.

1) Department store credit cards don’t offer real savings.

It’s always tempting to save 10-15% on a purchase at a store like Kohl’s, Target, Home Depot, etc. In some cases, it could be a great idea. Here’s when it’s not: carrying a balance on this type of card will quickly reverse the savings at the cash register and you could end up paying double or triple the original price.

Tip: Unless you’re going to pay the balance in full on your original purchase, and on future purchases (remember – it’s always good to use a credit card once every 6 months), then pass on opening your card.

2) Rewards programs can often cost more than buying the product outright.

Knowing what you’re spending, and when you can pay off your spending, is critical to utilizing a rewards card. Don’t get sucked into rewards deals just because the picture looks pretty. You should not use your rewards card to incur debt that you cannot afford simply to get the miles, points, or cash back benefits. In most cases you could have saved the money for that purchase and paid less than the amount of money you have to charge in order to accumulate the necessary points or miles on your reward program. Again, if you are already using your card for purchases, it makes sense to get the rewards, however you should not use the card just for the rewards.

Tip: www.mint.com. This is budgeting software I utilize, which has helped me paint a picture and create a budget for spending. Rewards come if you are secure in knowing what your spending habits are and you can stick to them

3) Prepaid and secured credit cards can cost you money.

Most often used by people who have bad credit or no credit, credit cards that require a cash deposit for collateral often come with high fees. If you fail to properly research and understand the terms and conditions of these forms of credit you may find up to 50% of your deposit is consumed by various fees. To avoid this, look for cards with low interest rates and minimal fees.

Tip: Go to your bank first and establish a relationship with a banker. They can explain the fees on their credit cards and help you through how to best utilize the card so you’re helping yourself, not hurting yourself.

4) Some credit cards do not report to credit reporting agencies.

Whether you are trying to establish credit or maintain a good credit score, you need to have your credit card activity reported to all three credit bureaus. Without this information, all of your efforts to properly manage your credit card account are for naught. Granted, properly managing your account will keep your finances in good order, but without the activity being reported to the agencies, no one will be the wiser. You don’t want your hard work and responsible behavior to go unnoticed by future lenders.

Tip: Confirm the card you are applying for will report your credit activity.

Sourced from www.creditinfocenter.com

For more helpful tips on ways to help protect and improve your credit score, please visit my website: http://www.mcdonaldlendingservices.com/Credit_Tips.html ; and, as always, please contact me with any questions or comments you may have. 

Megan McDonald, Licensed Mortgage Planner
Excel Home Lending
383 Inverness Parkway, Suite 140
Englewood, CO 80112
Cell: 303-717-9995
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com

An Insider’s Guide to H06 – “Contents Insurance”

(My guest blogger for this issue is Aaron Nieman, owner of Aaron R Nieman Insurance Agency.)

You may have heard how lenders are now requiring that borrowers on townhomes and condos carry an HO6 policy. This is what some people call a Contents Insurance policy. An important question to ask is why do you think this is happening?

Let’s use an example with another insurance coverage that most people have. Imagine getting into a car accident and showing up at the repair shop to find that the insurance company had your vehicle completely repaired, except for the interior. You look inside the car and find no seats, steering wheel, dashboard… etc. Now they need additional money from you to buy and install these items. What would you do?

This is the same situation that banks are in should something happen to the condo or townhome they own, as they are the owner until you pay them off. If there is a fire, flood, or any insurable event, most master policies for homeowner’s associations do not cover the interior. This means that the carpet, cabinets, drywall, fixtures, and doors, to name just a few items in that condo, are not getting repaired. So, banks are now requiring that you carry a policy to cover this important asset.

In my opinion, this is something that was long overdue. This has always been a gap in coverage that leads to a lot of problems. In most cases, an HO6 policy can be as inexpensive as $12 a month, depending on how much coverage you need. However, with most insurance companies, adding this coverage will qualify you for a home auto discount on your auto policy, which will lower your auto insurance payment, bringing your net cost down.

While this may give you a brief overview of this issue, there is more to consider when looking at an HO6 policy. Some more important things to ask yourself and the insurance professional that you work with are:

– What is the amount that my interior needs to covered at?
– How much would I need to replace all of belongings?
– How does the deductible I choose for this policy effect the rate?
– Will this policy cover injury on property due to negligence (i.e. liability coverage)?
– What amount of liability coverage is appropriate for me?

Feel free to contact me anytime should you have any questions. Don’t just get a policy, understand why need it and make sure the coverage is appropriate for your situation.

Aaron_Nieman

Aaron R Nieman
Aaron R Nieman Insurance Agency
9785 South Maroon Circle Suite 312
Englewood, CO 80112
Office   303-645-8036
Cell      720-422-8190
Fax      303-645-8039

[Aaron Nieman is the owner and operator of the multi-award-winning Aaron R. Nieman Agency of American Family Insurance. The agency has been around for more than five years. J.D. Power & Associates awarded Aaron with the prestigious Award of Excellence for being in the top 20% for agent customer service in the field of insurance. Additionally, the agency has won multiple company awards. Aaron and his agency’s promise to his clients is that you will not receive better service with the right amount of coverage for a lower amount of premium.]

Should Getting Out Of Debt Be Your Number 1 Priority?

(My guest blogger for this issue is Jose Luna, managing broker of HomTur Realty.)

Should Getting Out Of Debt Be Your Number 1 Priority?

I was surfing the internet researching articles about real estate. The articles I came across talked about a possible second wave of foreclosures that are looming. Lots of details and statistics about delinquency rates and the number of people in option ARM loans that are causing themselves harm by paying the minimum amount on their mortgages.

I recommend that getting out of debt be your number one priority for two reasons. First, you will find yourself in a crunch you didn’t predict and become a part of a statistic , and second, you can take advantage of some of the tremendous opportunities that will be available. If you believe that the best opportunities appear when there is chaos, then prepare now. Will you be ready the next time opportunities present themselves? Or will you be saying once again, “Darn, I don’t have the money to jump on this opportunity.”

Here’s what one article reads…

“All signs point to a new flood of real estate foreclosures that no amount of government sandbagging will prevent. Sources of trouble:

– A record 7.58 percent of U.S. homeowners with mortgages were at least 30 days late on payments, says Equifax. Delinquencies are not only rising from month to month, but rising at a faster pace. More than 41 percent of subprime mortgages are delinquent.
– About 1.2 million loans out there are in limbo: The borrower is in serious default yet the bank has not started the foreclosure process. Another 1.5 million are in early stages of the foreclosure process but the bank hasn’t yet taken possession of the home. Counting these and loans that are highly likely to end up in default, one analyst estimates three million to four million foreclosed homes will come on the market over the next few years.“

To read more, click on the below link:
http://reason.com/blog/2009/09/23/corpse-of-a-thousand-houses

Now let’s take a look at some data that reflects the consumer debt in America:

– Here are some interesting statistics from an article titled, “Don’t Get Clobbered By Credit Cards”, by author and journalist, Gary Weiss:

– The average American household’s credit card debt in 1990 was $2,966. In 2007 it was $9,840.

– 60% of U.S. consumers always (or usually) pay off their bills in full each month. The 40% who don’t pay off their bills each month are called “revolvers”. In 2007, revolvers paid $18.1 billion in penalty fees to credit card companies. This figure is up more than 50% since 2003 and accounts for approximately half of the industry’s $40.7 billion in profits. For the full article, please click here. 
(SOURCE: www.parade.com and garyweiss.blogspot.com)

 
So, credit card debt has more than tripled in less than 20 years and “revolvers” paid $18.1 billion in penalty fees! That is astounding!

There are many resources available to help get you reduce and eliminate your debt. Make sure you do your homework because some may be causing damage to your credit along the way.

Here are some that I heard are worth looking into:
www.cashflowobjectives.com
www.mortgageaccelerator101.com

Do you know any others that you would recommend?

Do you have any questions?

Jose Luna
HomTur Video Realty
1720 Wazee St Unit 1-B
Denver, CO.  80202
(303) 815-1515
www.JoeMoonSellsColorado.com 

[Jose Luna is the managing broker of HomTur Realty, and manager of ColoradoNewHomes.com. Jose is also a member of the Denver Board of Realtors. He specializes in residential and investment properties. He is an investor, landlord, and has managed his properties for over nine years. Jose is a University of Colorado alumnus where he earned his Mechanical Engineering Degree. Jose is committed to living his by his life's mission statement: "To use my passion and enthusiasm to inspire and empower others to create powerful lives."]

Would You Trust Van Gogh to Paint You a Picture?

Van Gogh said once, “I dream my painting, and then I paint my dream”.

Van Gogh had experience, imagination, and of course, talent. My biggest concern regarding my clients is their lack of knowledge/experience when it comes to mortgages. It’s also my biggest joy to educate and help my clients figure out how to make a mortgage decision which provides the greatest benefit for them and their family. Part of this process involves talking with my clients about what their financial goals are so I can help integrate the right mortgage into their goals. When I ask them what their goals are, however, most of them don’t know or they have the response, “I want the cheapest rate and the lowest costs.”

Quite frankly, if I wasn’t deeply involved in the industry, I wouldn’t know what kinds of questions to ask to figure out what kind of mortgage makes the most sense for my situation and whether the mortgage broker I’m dealing with is trustworthy.  Most of us are not taught how to seek the right information when planning our financial future. So, if you don’t have a solid background, yourself, in financial services, you need to find someone who has experience and talent, along with a healthy dose of good character.

Hmm…makes me wonder if I could ever claim the title, “The Van Gogh of Mortgages”…probably not…I will say though that I can pass along some tips so you know when you’re dealing with an experienced, trustworthy mortgage professional:

When you ask the question, “What’s your best rate?”. You get the answer, 4.5%. – Is that person trustworthy?

NO. If someone quotes you a rate without asking many questions, that should be a trigger to you that they are trying to “sell” you on rate, not on what’s realistic for your individual situation. There are a lot of factors involved in qualifying for a mortgage rate. A reputable mortgage professional will work to get at least some basic information from you before making any predictions regarding rates. Better individuals will educate you about how your particular information affects the rate you might qualify for.

It is important, too, to realize that an interest rate is comprised of several components beyond the qualifications of the applicant.  The “price” of the rate has to do with the type of mortgage, (i.e. FHA or Conventional). The property type is also considered (i.e. single family or condo). Then, we factor in the personal credit score (i.e. 740 or 620). It also matters how much money you have to put down or how much equity you have if you’re refinancing (i.e. 20% down or 5% down).

When you ask the question, “Can you tell me what my costs are going to be?” The person gives you the answer verbally. – Is that person trustworthy?

NO.  By law, within 3 days of a loan application, you should have a Good Faith Estimate mailed, e-mailed, or faxed to you with fees disclosed. You should review each of the fees so you understand them. If you don’t understand, ASK, and expect a clearly defined answer. – This is YOUR money and you should know where it’s going.

I sat down with a new Financial Planner a couple of weeks ago and for the very first time in one of these meetings, I was told, “I want to help you achieve your goals, but you need a budget first.” At first, I was shocked, and, I admit, even a little irritated. Then I realized..Wow!…This guy really does want to help me and can’t until he asks the right questions. By asking the right questions, he helped me to see the bigger picture, which included the fact that I had to be an active participant in making this relationship work so that I received the results I was looking for.

In conclusion, trust your gut. If you like the mortgage person you’re talking to – they’re listening to you and asking lots of questions about what your goals are and how they can assist you in achieving those goals – you can typically be confident that you’ll be taken care of. If, on the other hand, you get the feeling that they are just feeding you the information they think you want to hear, without seeking or providing hard facts to back it up, it may be a sign that you should find someone else to work with.

As always, please contact me if you have any questions. I’m here to help empower YOU!

Megan McDonald
Licensed Mortgage Planner, Excel Home Lending
383 Inverness Parkway, Suite 130
Englewood, CO  80112
Cell: 303-717-9995
Off: 303-790-2022
Fax: 303-468-6133
Meg¹s Blog: http://howfinanciallysavvyareyou.wordpress.com/
www.excelhomelending.com
www.mcdonaldlendingservices.com
http://twitter.com/megmcd

Survey Says: I Want the Customer Service Formula!

Maybe I’m wrong about what people want and expect from one person serving another. I am on a mission to figure out a formula that works – I hope you’ll consider responding to this.

 

How do YOU define “Customer Service”? – I’ve GOTTA KNOW! Do you want to feel special, or “enhanced” by the experience, or is your experience simply a process that you go through that is expected?

 

I think it depends, doesn’t it? If you’re buying a house, or dining in a restaurant, you probably expect different things.

 

Let me narrow it down so we can discuss this. I’m a Mortgage Broker. I set myself apart from other brokers by a high level of intentional service. The question for me is, what one client expects or wants, is totally different from another. How can I please everyone? Yes, I know…I can’t please everyone, but I still want the formula.

 

According to Wikipedia, Customer Service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer’s expectation.

 

Will these meet your expectations, but better yet, make you want to use that person or experience that thing again:

 

•  Dressing professionally

•  Smiling a lot

•  Being enthusiastic and fun

•  Going the extra mile (what is that, by the way?)

 

OR these

 

•  Listening to your customer’s wants and needs, and meeting them

•  Following through with your word – and if you can’t, letting your client know why

•  Fixing the problem

•  Empowering your customers to make the best decision for them and their family

•  If you don’t know the answer, saying so and then finding out

•  Being proactive, open, and honest

 

Maybe going the extra mile, smiling a lot and dressing well is part of the formula, maybe they just come naturally if you truly are providing a service. Would you judge me if I fixed your problem in jeans? Really though, I don’t wear jeans while I’m working, I’m just throwing that out to find out what matters to you.

 

So, what’s your formula for customer service?

Megan McDonald, Licensed Mortgage Planner
Excel Home Lending
383 Inverness Parkway, Suite 140
Englewood, CO 80112
Cell: 303-717-9995
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com

Are You Buying In or Into The Doom & Gloom?

Have you heard this in the news lately? Maybe some of these terms sound familiar:

Bail Outs
Credit Crunch
Declining Real Estate Values
Deflation
Job Losses
More Defaults Coming
THE WORLD IS COMING TO AN END

OK, so the last one is a bit dramatic. But, to be quite honest, every once in awhile, I have to admit that I, too, get sucked into the Doom and Gloom vortex. We’re not perfect, but what do we really need to know?

How about this for an interesting and eye-opening statistic: On average, over 20-year periods, housing prices increase 140% (appreciation) and median household income increases 140%. Take, for example, 1979-1999. BUT – when you examine the years of 1999-2005, the U.S. experienced 150% appreciation and very slight income growth. What does this mean?

Here’s the Doom and Gloom – Read this and then get over it!

If your home was valued at $200K in 2000, then in 2008, this statistic would point to a selling price or value of $280K. What actually happened in that short amount of time between 2000 and 2005 was that the $200K home was valued at $380K. So, we are hearing a lot of people experiencing depreciation. The values we’re seeing today are more in line with how appreciation works over time (20-year stat). Some Sellers have it rough right now and Refinances are tough because of this huge leap in home values in a short time. They crashed, and now our housing market is trying to recover.

Here’s the Good, Better and Best.

Low mortgage rates will stimulate home purchases.

We are in a “love your home again” philosophy. Many people are staying put and appreciating being able to pay their mortgages. These same people are also saving money. What if you are one of these and, instead of buying into the doom and gloom, you could buy a home at a 30% discount? This is what is going on right now!!!

Buying a home is one of the best investments you can make! You are tax advantaged, and payments are affordable (particularly if you pay rent these days!) This is an incredibly exciting time to buy, due to falling prices and falling interest rates – simultaneously. This is an extremely rare occurrence!

RATES RIGHT NOW ARE WITHIN HALF A PERCENT OF THIS COUNTRY’S BEST RATES IN HISTORY.

Should I get into the real estate market?
If I’m already in, should I jump in further? (2nd home, Investment property)
Once I’m in, can I afford it?

These are all great questions and ones that you should consider with a strategic team of professionals.

Megan’s Solution to the D&G: Time & Patience and EDUCATION. Ask questions, and (dare I say) work hard, save money, repair credit, get out of debt, turn your lights off, eat at home more, and take advantage of this amazing opportunity to invest in real estate!

Oh, and no more buying into the D&G stuff – buy during the Good, Better, and Best.

Megan McDonald, Licensed Mortgage Planner
Excel Home Lending
383 Inverness Parkway, Suite 140
Englewood, CO 80112
Cell: 303-717-9995
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com

Playing the Blues – Workshops and Making Money!

My business coach, Chuck Blakeman (a.k.a. “The Man” – www.TeamNimbusWest.com), talks about the “Why” and the “When”. I finally get it – Thanks, Chuck.

So, I’ve defined my Why and my When – have you?

I went to go see one of my favorite Blues musicians this past week – his name is Tab Benoit (www.tabbenoit.com) – at the Little Bear, in Evergreen, CO. This is one of the most intimate places to watch a musician play. You can see the lines in their faces and the feeling in their bodies as they do what they love. Tab figured out his “Why” a long time ago. He helps people remember what singing and playing the Blues is all about. His passion is obvious, and not too long ago, his “When” happened to him. When New Orleans flooded, which is Tab’s home, the impact he felt while living there was profound. I don’t know this man (but you should to ask me about the time I got to see his tour bus), but I do know he wants to preserve and rebuild his home. As a result of this catastrophe, he works into every show a little awareness about what’s really going on in his city. Regardless of your political or humanitarian opinions on New Orleans, what happened and what should happen, you can’t fault Tab for playing some music, entertaining us, and educating people about what’s really going on.

My “Why” is educating people on the stuff we’re supposed to be learning in schools, but aren’t. My “When” finally happened! I held my first educational Workshop on January 28th in Highlands Ranch and am happy to report that it was a great experience for me and the other expert presenters I recruited to join me in this endeavor. I actually had every survey filled out with great suggestions on how to improve and feedback that didn’t bruise our egos! I am humbled by the encouragement that we received and by the knowledge that my colleagues have to give to other people so that we can impact someone’s life. Thank you to everyone! I can’t wait for the next one coming soon…

I’ll ask you again, do you know your Why and When?

When times are tough – and for many people, they are right now – what keeps you going? What’s your Why? Some say it’s their kids and keeping a roof over their heads. Some say it’s their desire to be financially free and have time to do what they’ve always wanted to do. Is this really your Why? When you go to work every day and the boss wants this report and deadlines need to be met, is that thing – that WHY you are working for – in your line of sight? These questions that Chuck asked me prompted me to really figure this out. My Why might change as I have the lucky chance to get older and wiser, but for now, it’s the biggest definition I’ve had in my life. Once you have your Why, then you can designate your When and work towards it.

So, Tab singing the Blues and my educational Workshops have a lot in common. We work towards a purpose and BECAUSE there is a purpose, the hard times don’t feel so hard and great opportunities fall into your lap. This Blog is titled, “How Financially Savvy Are You?” My bet is that you will become more financially savvy when you have these two things defined.

I would love to hear about your two W’s. Please post your comments here!

My next educational workshop will be coming soon. – Stay tuned!

Megan McDonald, Licensed Mortgage Planner
Excel Home Lending
383 Inverness Parkway, Suite 140
Englewood, CO 80112
Cell: 303-717-9995
Fax: 303-468-6133
www.excelhomelending.com
www.mcdonaldlendingservices.com