The Blog Report

Ok so were not billionaires, doesn't mean we can't think like one.  While we sit here and believe all the media hype about how bad the economy is, buffettologist's (yes thats what they call themselves) are like kids in a candy store.   Like all things this to will pass.  If you can see the forest through the tree's you would likely see some positive results in the next two or three years from the stocks you bought today at bargain basement prices.  Well the same is true for real estate.  Now don't get me wrong, I too feel the gas pinch and I am sympathetic to those that are struggling to pay everyday expenses, however misery does love company and I won't be a part of it.

Here are some facts:

•     Mortgage interest is still deductable rent is not!
•     Interest rates are still close to all time lows
•     FHA is more attractive than ever
•     Yes... It's a buyers market
•     Some homes are being sold with sellers paying closing costs and believe it or not... giving away cars!

What has changed for the better?  Some bad mortgage programs that should have never been offered in the first place- 110% loans, no income, no asset loans, all of the subprime prepayment penalty loans (CenterPointe Mortgage did not offer these loans even in their highest of popularity).

So I suggest you walk into your local mortgage company and get pre-approved.  Just don't over do it.  Stay within your means, don't exceed a 45% qualifying ratio if it's your first home (and be smart if it's your second).  Work with a mortgage planner not a application taker.  Use the banks money NOT YOURS!  Lets look at your future retirement accounts, do you have a plan?  Keep and open mind about never paying off your mortgage and look into other safe side accounts.  Did you know if you are in a 30% tax bracket and have a fixed rate of 6.5% that after tax it is like having a rate in the 4% range?  Why be in a hurry to pay that back?

If the next ten years get here as fast as the last 10 years did are you prepared?