In light of the negative news in regard to the economy and real estate market, I thought I would try to put some good, positive information out there! What do you say? Would that be ok?! I thought so!
First and foremost, lenders are still open for business, we have money to lend....and rates are still historically low. David Bach, financial coach and author of the book The Automatic Millionaire Homeowner, among others has created a great 2 page document for us. In it, he gives some pretty good perspective on how real estate has historically been a very good investment. Email me at scott.wittig AT wellsfargo.com and I'll send it to you.
Also, this post gives some very good perspective on the losses that we are facing in the stock market.
By no means am I saying that things are great and we should have no worries, but if there is some good news to be had, let's spread it! As David Allen says, "We're all alone in this together."
Friday, October 10, 2008
Wednesday, September 24, 2008
Lock In Your Mortgage Rate
Wow, there is a lot of volatility in the markets lately! I subscribe to a service called the Mortgage Market Guide and it has been like watching a yo-yo lately. There is no trend and nothing is very predictable when it comes to mortgage bonds.
With that said, the market volatility is not the only reason to lock in your mortgage rate these days. The investors who buy the loans from mortgage companies after they get packaged up with others have varying appetites. The changes that they are making in terms of what they are interested in buying and how much they are willing to pay are leading to an ever-changing set of guidelines for mortgage lenders to follow. Because of this, lenders are only able to honor or "grandfather" loans that are locked in. Essentially, we'll commit guidelines to you if you'll commit to doing business with us by locking in.
So, when you are getting started on a loan application, consider locking your rate to protect your rate and your ability to get approved!
With that said, the market volatility is not the only reason to lock in your mortgage rate these days. The investors who buy the loans from mortgage companies after they get packaged up with others have varying appetites. The changes that they are making in terms of what they are interested in buying and how much they are willing to pay are leading to an ever-changing set of guidelines for mortgage lenders to follow. Because of this, lenders are only able to honor or "grandfather" loans that are locked in. Essentially, we'll commit guidelines to you if you'll commit to doing business with us by locking in.
So, when you are getting started on a loan application, consider locking your rate to protect your rate and your ability to get approved!
Thursday, September 11, 2008
Fannie Mae, Freddie Mac bailout and me
We've had a little bit of time to digest what this bailout / takeover / expansion of government - whatever you want to call it - means for the world of mortgages going forward. It will certainly bring stability and create some sort of a floor or foundation for us to move forward. Over the last six months we've seen mortgage rates hit a low, stop and then radically turn upward on a few occasions. The windows to grab low rates have been really small; sometimes a matter of hours. This was likely because investors buying bonds didn't have any certainty about the stability of the entire market.
Our hope going forward is that the interest rate drops we see will be more sustained. However, my advice to homeowners who are considering a refinance or homebuyers considering a purchase is this -- work with a lender who understands the markets, don't be greedy about rates and get your application in so that you have the ability to lock quickly if the market does happen to turn.
I will continue to post about Fannie Mae and Freddie Mac and what it all means to you, as we learn more. For now, we can at least say that we've gone from a pending implosion in the mortgage market altogether to a much more positive outlook.
Our hope going forward is that the interest rate drops we see will be more sustained. However, my advice to homeowners who are considering a refinance or homebuyers considering a purchase is this -- work with a lender who understands the markets, don't be greedy about rates and get your application in so that you have the ability to lock quickly if the market does happen to turn.
I will continue to post about Fannie Mae and Freddie Mac and what it all means to you, as we learn more. For now, we can at least say that we've gone from a pending implosion in the mortgage market altogether to a much more positive outlook.
Monday, September 08, 2008
Fannie / Freddie and Mortgage Rates
Over the weekend, the government took unprecedented steps to save the mortgage market by taking over control of the two largest buyers of mortgage loans, Fannie Mae and Freddie Mac. While this news, and all of the ramifications of it, still needs to be digested and analyzed (as though we didn't know it was coming!), it may prove to be very good news for mortgage rates and the Triangle real estate market.
Why? Mortgage rates are based on what happens in the bond market. The bond market (and stock market) doesn't like uncertainty. Put simply, this move adds a little certainty to what has been a really uncertain market. So far this morning the bond market and mortgage rates are really liking the news! If this is sustainable, the news of lower mortgage rates may very well be what is needed to release some of the pent up demand for homes that is likely out there in the Triangle market.
STAY TUNED!
Why? Mortgage rates are based on what happens in the bond market. The bond market (and stock market) doesn't like uncertainty. Put simply, this move adds a little certainty to what has been a really uncertain market. So far this morning the bond market and mortgage rates are really liking the news! If this is sustainable, the news of lower mortgage rates may very well be what is needed to release some of the pent up demand for homes that is likely out there in the Triangle market.
STAY TUNED!
Friday, August 29, 2008
Back to Basics
So we're in a down market, I get it. What happens when that happens? Lenders and Realtors start to re-think what they are doing to get and take care of customers. We get back to basics.
My thought here is to help out members of the real estate community, but my hope is that this will also be helpful to potential home buyers and sellers. We all suffer from "the curse of knowledge" -- the idea that we know so much about this industry and, because of that, we may lose sight of things that our Clients don't know anything about.
Closing costs-
I can't tell you how many buyers (first-time and move-up) that I've talked to in the pre-qualification / pre-finding a house phase who are afraid to ask the seller to pay closing costs. They think that it might hurt the seller's feelings or keep the seller from taking their offer. Some even think that, if the seller is paying these costs, that the seller is going to have to write them a check to get the money to them.
BACK TO BASICS --
Home sellers - go ahead and offer to pay X closing costs for a buyer. If you have a buyer come along who does not understand that they can actually negotiate for you to pay them, you've taken away an objection and offered something of value that might help your home sell more quickly.
Home buyers - know that home sellers typically look at the bottom line (offer price - any concessions like closing costs) to decide if they are going to take an offer. So (without getting into tax implications) an offer of $105,000 with the seller paying $5,000 in closing costs is essentially the same as an offer of $100,000 straight away. If they have read this post and are already offering to pay the 5k, you've got one less thing to worry about! ;-)
My thought here is to help out members of the real estate community, but my hope is that this will also be helpful to potential home buyers and sellers. We all suffer from "the curse of knowledge" -- the idea that we know so much about this industry and, because of that, we may lose sight of things that our Clients don't know anything about.
Closing costs-
I can't tell you how many buyers (first-time and move-up) that I've talked to in the pre-qualification / pre-finding a house phase who are afraid to ask the seller to pay closing costs. They think that it might hurt the seller's feelings or keep the seller from taking their offer. Some even think that, if the seller is paying these costs, that the seller is going to have to write them a check to get the money to them.
BACK TO BASICS --
Home sellers - go ahead and offer to pay X closing costs for a buyer. If you have a buyer come along who does not understand that they can actually negotiate for you to pay them, you've taken away an objection and offered something of value that might help your home sell more quickly.
Home buyers - know that home sellers typically look at the bottom line (offer price - any concessions like closing costs) to decide if they are going to take an offer. So (without getting into tax implications) an offer of $105,000 with the seller paying $5,000 in closing costs is essentially the same as an offer of $100,000 straight away. If they have read this post and are already offering to pay the 5k, you've got one less thing to worry about! ;-)
Should I Refinance?
It is a common question that many of us have and that we as Loan Officers hear all the time...including at cocktail parties! Well, in these days of government intervention into the financial markets and mortgage world, let's turn to the government for help with the answer! It has put together a pretty comprehensive tool that helps educate potential borrowers here
Hat tip to Mike Mueller
Hat tip to Mike Mueller
Friday, August 15, 2008
Help for Realtors
Based on the craziness that has occured in the mortgage industry, here are some (candid) tips for real estate agents as you move forward with your business:
ON LISTINGS:
1) Demand pre-approval letters or, at the very least, pre-qual letters that reference that credit has been pulled and reviewed. With guidelines changing frequently, it is that much more important for the buyers loan to have been reviewed by an underwriter (i.e. pre-approved) rather than the Loan Officer just having a conversation with the buyer and saying that it looks ok (i.e. prequal).
2) Watch who the letter is coming from. Who is the lender? Is it a name you know? Is it a banker or a broker? This distinction didn't use to be such a big deal, but the wholesale (broker) side of the business has been hit harder than the retail side (banker), so guidelines are often tighter for brokers. I'm not saying brokers are bad, but they are seeing more restrictions in a lot of cases and many banks have closed their wholesale lending business completely.
3) Who is the Loan Officer? Do you recognize the name? Are they local? Ask around your office or check with other agents you know to see if they are familiar with the loan officer. Experience in the industry and local knowledge goes a long, long way with all that has happened. Your paycheck is dependent on the loan officer as well as the company they work for. Take the time to be sure you are dealing with someone who is up on all of the changes going on.
WITH BUYERS:
See 1,2,3 above! Also...
1) Make sure that they are aware of the fact that the industry has changed greatly. This is not meant to dissuade them from buying, but they should know that everything is looked at much more closely than it used to be. They need to be completely honest from day one when talking to you and their lender. Quality control / quality assurance is a big deal for lenders these days, so the chance of a file being audited prior to closing to make sure that all of the t's were crossed and i's dotted is much more likely.
2) If they are in the process of packing, make sure to suggest to them that they keep all financial documents out and handy. This could mean documents from previous closings as well as paystubs, bank statements, etc. Setting this expectation up-front is huge and can make you a hero!
3) Let them know that it is not hopeless and that there are still a lot of options available. If it happens that they cannot do something right now let their lender be the one to tell them, not their next door neighbor. You hear the term "Mortgage Consultant" -- it means a lot these days.
ON LISTINGS:
1) Demand pre-approval letters or, at the very least, pre-qual letters that reference that credit has been pulled and reviewed. With guidelines changing frequently, it is that much more important for the buyers loan to have been reviewed by an underwriter (i.e. pre-approved) rather than the Loan Officer just having a conversation with the buyer and saying that it looks ok (i.e. prequal).
2) Watch who the letter is coming from. Who is the lender? Is it a name you know? Is it a banker or a broker? This distinction didn't use to be such a big deal, but the wholesale (broker) side of the business has been hit harder than the retail side (banker), so guidelines are often tighter for brokers. I'm not saying brokers are bad, but they are seeing more restrictions in a lot of cases and many banks have closed their wholesale lending business completely.
3) Who is the Loan Officer? Do you recognize the name? Are they local? Ask around your office or check with other agents you know to see if they are familiar with the loan officer. Experience in the industry and local knowledge goes a long, long way with all that has happened. Your paycheck is dependent on the loan officer as well as the company they work for. Take the time to be sure you are dealing with someone who is up on all of the changes going on.
WITH BUYERS:
See 1,2,3 above! Also...
1) Make sure that they are aware of the fact that the industry has changed greatly. This is not meant to dissuade them from buying, but they should know that everything is looked at much more closely than it used to be. They need to be completely honest from day one when talking to you and their lender. Quality control / quality assurance is a big deal for lenders these days, so the chance of a file being audited prior to closing to make sure that all of the t's were crossed and i's dotted is much more likely.
2) If they are in the process of packing, make sure to suggest to them that they keep all financial documents out and handy. This could mean documents from previous closings as well as paystubs, bank statements, etc. Setting this expectation up-front is huge and can make you a hero!
3) Let them know that it is not hopeless and that there are still a lot of options available. If it happens that they cannot do something right now let their lender be the one to tell them, not their next door neighbor. You hear the term "Mortgage Consultant" -- it means a lot these days.
Back to blogging!
So I'm back at it. I went full out with this blog when I first set it up and then got away from it. My apologies to anyone who left comments or had gotten hooked :-)
Thursday, March 08, 2007
Neighboroo.com - New website to find neighborhood data
Many websites have popped up lately to help homebuyers and real estate agents to easily research any U.S. location. Unlike sites like www.zillow.com and others, www.neighboroo.com concentrates on neighborhood data and not on house value.
By entering a physical address, zip code or landmark into Neighboroo, or by simply clicking anywhere on the U.S. map, users receive details and statistics about the location based on eight categories, each with subcategories:
Populace -- Population density, gender ratio, politics and religion.
Housing -- Home and rent prices, cost of living, taxes and years in residence.
Schools -- Performance, diplomas and college education.
Safety -- Crime statistics and severe weather.
Health -- Environmental factors and physicians per capita.
Climate -- Temperature, rainfall and snowfall.
Income/Work -- Household income, commute time, unemployment and job growth.
Age/Ethnicity -- Age groups.
This looks like a really neat site to get a grip on all of these factors that are so important to homebuyers. If you are interested in gaining access to the largest listing database in the country, contact me to find out about the Homebuyers Scouting Report.
By entering a physical address, zip code or landmark into Neighboroo, or by simply clicking anywhere on the U.S. map, users receive details and statistics about the location based on eight categories, each with subcategories:
Populace -- Population density, gender ratio, politics and religion.
Housing -- Home and rent prices, cost of living, taxes and years in residence.
Schools -- Performance, diplomas and college education.
Safety -- Crime statistics and severe weather.
Health -- Environmental factors and physicians per capita.
Climate -- Temperature, rainfall and snowfall.
Income/Work -- Household income, commute time, unemployment and job growth.
Age/Ethnicity -- Age groups.
This looks like a really neat site to get a grip on all of these factors that are so important to homebuyers. If you are interested in gaining access to the largest listing database in the country, contact me to find out about the Homebuyers Scouting Report.
Tuesday, February 27, 2007
Mortgage Industry tightening up
We are starting to see some serious tightening in our industry due to the foreclosure rates across the country. The last couple of years have been a bit of a free-for-all for the sub-prime / Alt-A side of the industry. The proliferation of 100% financing programs for home buyers with low credit scores and for investors buying non-primary residence properties has been unprecedented. Unfortunately, those loans are not performing and are ending up in foreclosure.
There have been numerous news articles and no shortage of internal memos about the sub-prime mortgage market tightening up. We are seeing Loan to Value limits being cut back, credit score requirements raised and rates (especially on 2nd mortgages) increasing.
These changes will affect people with credit scores in the sub-660 range the most. We will see the use of LPMI (Lender Paid Mortgage Insurance) programs proliferate in the absence of second mortgage options. The silver lining is this will give home buyers the ability to have just one loan rather than two.
There have been numerous news articles and no shortage of internal memos about the sub-prime mortgage market tightening up. We are seeing Loan to Value limits being cut back, credit score requirements raised and rates (especially on 2nd mortgages) increasing.
These changes will affect people with credit scores in the sub-660 range the most. We will see the use of LPMI (Lender Paid Mortgage Insurance) programs proliferate in the absence of second mortgage options. The silver lining is this will give home buyers the ability to have just one loan rather than two.
Monday, February 19, 2007
Trigger leads -- Advice if you are seeking a home loan
So some news has come to the forefront that credit bureaus are betraying our trust. The big credit bureaus are reportedly looking to increase their revenue by selling something called "trigger leads." The scenario might go something like this -- you go to your trusted Mortgage Advisor and get your credit pulled to be sure that you are in good shape for your upcoming purchase or refinance loan. The credit bureaus then capitalize on this opportunity and sell your information to other mortgage companies. Those mortgage companies then contact you with the knowledge that you are looking for a mortgage loan.
So far, this sounds like a semi-reasonable, capitalistic practice (I'll leave the legalities of it to the experts). Things change, though, when the mortgage companies go to the dark side with their tactics -- "We were contacted by your lender and they asked us to get going on your loan" or "Please sign these loan papers and send them back to us."
It gets worse -- collection agencies may also be able to purchase these lists. Why would they be interested? Because they know that some mortgage loan programs require old collections to be paid off in order for borrowers to be approved. If those credit bureaus update their records or sell the accounts, it could actually lower your credit score due to the affect that recent activity on derogatory accounts has on your credit score.
Jeez -- pretty stinky, huh? What can you do? Go to www.optoutprescreen.com and opt out of credit offers, insurance offers, etc for either 5 years or for life. Not only will this get you off of these "trigger" lists, but it will also greatly reduce your chances of being a victim of identity theft.
I have a good bit more information on this subject, so please contact me and I'll be happy to send it to you.
So far, this sounds like a semi-reasonable, capitalistic practice (I'll leave the legalities of it to the experts). Things change, though, when the mortgage companies go to the dark side with their tactics -- "We were contacted by your lender and they asked us to get going on your loan" or "Please sign these loan papers and send them back to us."
It gets worse -- collection agencies may also be able to purchase these lists. Why would they be interested? Because they know that some mortgage loan programs require old collections to be paid off in order for borrowers to be approved. If those credit bureaus update their records or sell the accounts, it could actually lower your credit score due to the affect that recent activity on derogatory accounts has on your credit score.
Jeez -- pretty stinky, huh? What can you do? Go to www.optoutprescreen.com and opt out of credit offers, insurance offers, etc for either 5 years or for life. Not only will this get you off of these "trigger" lists, but it will also greatly reduce your chances of being a victim of identity theft.
I have a good bit more information on this subject, so please contact me and I'll be happy to send it to you.
Thursday, February 15, 2007
Housing Market Predictions
The Chief Economist of the National Association of Realtors (NAR) has released his predictions for the housing market in 2007 and beyond.
"After reaching what appears to be the bottom in the fourth quarter of 2006, we expect existing-home sales to gradually rise all this year and into 2008."
He predicts that mortgage rates will remain favorable with a gradual increase over the course of the year. Overall, good news for home buyers.
"After reaching what appears to be the bottom in the fourth quarter of 2006, we expect existing-home sales to gradually rise all this year and into 2008."
He predicts that mortgage rates will remain favorable with a gradual increase over the course of the year. Overall, good news for home buyers.
Fed Chief speaks & helps mortgage rates
Ben Bernanke, Chairman of the Federal Reserve Board, spoke yesterday and helped out mortgage rates in the process. With inflation being the arch-enemy of bonds and mortgage rates being tied directly to bonds, his words about inflation being fairly well in check is good news for homebuyers and people looking to refinance.
Tuesday, January 16, 2007
Buying foreclosed (REO) homes
I just found a pretty detailed post on a real estate blog about buying foreclosed homes. The often-used term for this is "REO" property which stands for "Real Estate Owned" [AKA the bank owns it].
Getting financing:
--PROBLEM -- The house may be in disrepair -- this could adversely affect the appraised value and cause the lender to require items to be fixed before being able to close.
--SOLUTION -- Try to get a construction loan or use some other type of unconventional financing to buy the house. Then, after the work is done, refinance the property to a traditional mortgage (if you plan to keep it).
Getting financing:
--PROBLEM -- The house may be in disrepair -- this could adversely affect the appraised value and cause the lender to require items to be fixed before being able to close.
--SOLUTION -- Try to get a construction loan or use some other type of unconventional financing to buy the house. Then, after the work is done, refinance the property to a traditional mortgage (if you plan to keep it).
Monday, December 11, 2006
PMI Now Tax-Deductible
Congress has just passed legislation allowing Private Mortgage Insurance (PMI) to be tax-deductible beginning in 2007. Click here for the whole story.
Mortgage insurance has been a bit of dirty word in lending (at least from the homebuyers perspective) for quite a while due to the fact that it couldn't be written off like mortgage interest can. Combination or piggyback loans (like 80/20's) have gotten very popular as a legitimate way around PMI.
It will be interesting to see how quickly this catches on - my guess is that it will be a big thing, fast. One loan rather than two? We're all about simplifying our lives!
Mortgage insurance has been a bit of dirty word in lending (at least from the homebuyers perspective) for quite a while due to the fact that it couldn't be written off like mortgage interest can. Combination or piggyback loans (like 80/20's) have gotten very popular as a legitimate way around PMI.
It will be interesting to see how quickly this catches on - my guess is that it will be a big thing, fast. One loan rather than two? We're all about simplifying our lives!
Wednesday, November 01, 2006
Interest-Only Loans & Option ARMS -- Be Informed
There has been a lot in the news about these types of loans lately. You have also seen some posts on this blog about them.
The Federal Reserve has been putting a good amount of time into studying these loans out of concern for the borrowing public. They have just released an informative new booklet that you can find here. This booklet, coupled with the advice of a Mortgage Consultant, should help you to make an appropriate decision on the right type of loan for you.
The Federal Reserve has been putting a good amount of time into studying these loans out of concern for the borrowing public. They have just released an informative new booklet that you can find here. This booklet, coupled with the advice of a Mortgage Consultant, should help you to make an appropriate decision on the right type of loan for you.
Home prices in NC still doing well
The North Carolina Association of Realtors just released the home sales statistics for the month of September and we are still doing great compared to other areas of the country.
"Nationally, statistics through August released by the National Association of REALTORS indicated a 12.6 percent year-to-date decrease compared to the first eight months of 2005. Conversely, North Carolina showed a 6 percent increase, one of only a handful of states to be on the upswing. National data for September will be released by NAR before the end of this month."
Contrary to popular belief (i.e. the media), we still have a very good real estate market here in N.C.!
"Nationally, statistics through August released by the National Association of REALTORS indicated a 12.6 percent year-to-date decrease compared to the first eight months of 2005. Conversely, North Carolina showed a 6 percent increase, one of only a handful of states to be on the upswing. National data for September will be released by NAR before the end of this month."
Contrary to popular belief (i.e. the media), we still have a very good real estate market here in N.C.!
Tuesday, October 10, 2006
Buying a New House Before Selling Your Old House
So you've done what so many people do -- you've found the house of your dreams before you've sold your existing house (or even thought of selling if you're like me and my wife).
How do you make it happen and keep from causing yourself a divorce or nervous breakdown?
There are quite a few questions that arise and need to be addressed when you consider making a move like this:
Let's consider a "Plan B"
This is a twist that takes an open-mind and some creativity -- some banks out there offer something called a single-pay note (also referred to as a 90 day or 180 day note). You could apply for such a loan, use it to payoff what you owe on your existing home and then get a new loan for the new house.
The beauty of the single-pay note is that you do not have to make monthly payments on it, thus taking out the worry of "double payments." The interest accrues on the note, but it is not required to be paid until the 90 or 180 days has passed. If you reach that point and your house has not sold, you are required to pay the original principal balance plus the accrued interest OR slip your banker a 20 spot and ask them to extend the note for you ;-)
Creativity can go a long way when you want to buy before you sell!!!
How do you make it happen and keep from causing yourself a divorce or nervous breakdown?
There are quite a few questions that arise and need to be addressed when you consider making a move like this:
- Will you qualify -- typically, your new mortgage and your existing mortgage(s) will count in your debt-to-income ratios
- What about your current equity -- how will you move that from your existing home into your new home?
- Double payments -- when do those kick in and are you willing and able to take that risk?
Let's consider a "Plan B"
This is a twist that takes an open-mind and some creativity -- some banks out there offer something called a single-pay note (also referred to as a 90 day or 180 day note). You could apply for such a loan, use it to payoff what you owe on your existing home and then get a new loan for the new house.
The beauty of the single-pay note is that you do not have to make monthly payments on it, thus taking out the worry of "double payments." The interest accrues on the note, but it is not required to be paid until the 90 or 180 days has passed. If you reach that point and your house has not sold, you are required to pay the original principal balance plus the accrued interest OR slip your banker a 20 spot and ask them to extend the note for you ;-)
Creativity can go a long way when you want to buy before you sell!!!
Monday, October 09, 2006
Find Comparable Rent Amounts - Rentometer
If you are thinking of buying a rental property or, if you are an agent helping someone else to do so, here is a new tool that may trump the MLS -- Rentometer
This is a very cool tool put out by Google. You just plug in the address, current rent, number of bedrooms and number of units in the building and it puts up a gauge showing how the current rent compares and a Google map that shows the locations of other rentals in the area. It is slightly big-brotherish, but so is Google Earth and everyone thinks that is cool ;-)
Thanks to Joshua Dorkin for this info. Joshua puts out a popular blog for real estate investors called Bigger Pockets.
This is a very cool tool put out by Google. You just plug in the address, current rent, number of bedrooms and number of units in the building and it puts up a gauge showing how the current rent compares and a Google map that shows the locations of other rentals in the area. It is slightly big-brotherish, but so is Google Earth and everyone thinks that is cool ;-)
Thanks to Joshua Dorkin for this info. Joshua puts out a popular blog for real estate investors called Bigger Pockets.
Friday, October 06, 2006
Prepaying Your Mortgage versus Saving
A recent report released by the Federal Reserve Board of Chicago provides us with some empirical evidence that mortgage planning is hugely important. This report states that,
...about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice.....reallocating their savings can yield a mean benefit of 11 to 17 cents per dollar......these mis-allocated savings are costing U.S. households as much as 1.5 billion dollars per year.
Some takeaways from this report for me were:
...about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice.....reallocating their savings can yield a mean benefit of 11 to 17 cents per dollar......these mis-allocated savings are costing U.S. households as much as 1.5 billion dollars per year.
Some takeaways from this report for me were:
- This is something that we can control and put into place very easily
- It comes from the Government -- i.e. typically some pretty conservative financial information comes out of the Government!
- A remarkable percentage of us do not contribute to retirement as we should (about 1/3 don't take advantage of employer-sponsored retirement plans and give up free money)
- The general arguments people make for paying down their mortgage versus saving elsewhere are very unfounded
The main argument here is that there is a true cost to not saving outside of your home or, put differently, that there can be big benefits to having money invested in retirement accounts (and elsewhere) and not having your money buried in your house.
I have gone through the entire report and have some other big "ah-hahs" that I have gotten from it which I will save for a conversation if you want to contact me or you can look for them in future posts.
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