March 15th 3 Stacks Paddy Dash

I love St Patricks day 5k runs – so much fun! Maybe that is why I helped our Frisco Sunrise Rotary Club create and become the promoter of our March 15th #PaddyDash held in Frisco Square.

Growing up in Manhattan, KS there was the very “spirited” St Patricks day run held in Aggieville each year. My favorite quote was after my mom asked dad if he was going to warm up for the run? Green beer in hand he replied, “I’m standing in the sun”

Please register for our 5k and One Mile run via http://www.PaddyDash.com – pre registration costs change at midnight tonight and only the first 750 registered guaranty themselves a t-shirt and goodie bag!

See you on March 15th in Frisco Square!!!

Weather the economy?

How much is this polar vortex affecting our economy? I for one am ready to wake up and not find frost on my car in Frisco, TX as we enter March.

The Durable Goods report came out just now, down 1%. But when you look at last months report that was low and then adjusted after to be even lower – folks are not out buying big ticket products. Then we see the Initial Claims report and that number is up a bit from what was expected – it shows a weak economy and I worry that some employers might react with trimming their work force a bit – not what any of us want to see.

Speaking of the weather and it’s impact it is having on us – Janet Yellen gives a report that had been put off due to weather – let’s listen to the Q & A section after her report for any indications for what the Fed might be up to!

On the positive for mortgage interest rates staying low – the stock market has not been able to break above its 1848 number as many fear that if and when it does – stocks go on a big run!

So what do you think – if the weather breaks do our numbers all turn around?

Join us at the Paddy Dash!

Please join me in welcoming Bounce for Fun as a long standing sponsor of the 3 Stacks Paddy Dash.  Bringing out an arsenal of games and bounce houses – making this a very family friendly atmosphere.  Join us on March 15th in Frisco Square!

With or without PMI?

Today I had three loan closing – well six really. I did each loan with a first and second – to avoid Private Mortgage Insurance, (PMI). Not as many lenders offering seconds in TX like they use to.

Adjustments to our mortgage industry via the Dodd/Frank law – changed the way loan originators (LO) were paid – basing our income on closed loan volume. They felt that change would help the consumer over the long run and always get the lowest interest rates. And if you add a second loan, you lower the amount a LO can get paid so I see more lenders selling loans with PMI.

Let me know if I could work up some loan numbers for you on a purchase where you don’t have the full 20% down payment. Would love the opportunity to work for you!

Incredible Homes of Past Presidents

With President’s Day earlier this week, let’s take a moment to view some of the beautiful homes of past Presidents. Granted, not many might come on the market anytime soon, but what a amazing view into our past!

Bought in 1754 – George Washington’s Mount Vernon

Andrew Jackson’s home went through a few ownership changes before becoming a Historic Site in 1889

Thomas Jefferson’s home, built in 1770 but had continued construction and additions until 1808!

2650 Acres and its own forest – plan for a few extra days to explore James Madison’s home.

Mortgage rates and the weather?

The Bond market has been on a bit of a run over the last few days – a run towards lower mortgage interest rates! But as released today – mortgage applications are down for the year – both purchase and refinance are 17% lower this year!

Many believe the weather is a big impact to this – do you?

Reverse Mortgages are not for the Risk Averse

Recently I had a conversation with my dad around Reverse Mortgages (RM). I’m sure we’ve all seen the television ads touting this as a way to use your equity today as part of your retirement. In very select circumstances, a RM product may make sense but for the most part you’re better off considering a traditional Home Equity loan, getting a roommate or selling your home. For most of us, our homes are a substantial investment. As we think about the future, the equity in our homes provides a level of financial security as well as a place to live. That may sound fairly simple, but it’s true. One thing that none of us want to experience late in life is not having a place to live and a paid-off home can provide that security.

The allure of RM products is that they can provide a way to supplement one’s income via a monthly payment, line-of-credit or lump sum. The way a RM works is that you borrow against a percentage of your existing equity and then each month the interest is added to your “loan balance.” It seems like even a better deal because you don’t have to pay off the loan until you decide to sell, permanently move or your home becomes part of your estate.

Yet, this is when things start to get tricky. Let’s say you need some long-term care and don’t live in your home for a year. Based upon the structure of these loans this qualifies as a “move.” So right when you think you’re going to be OK, you now have triggered a loan pay-off right when you likely have medical bills mounting up in the background. Since none of us know what life will bring, this kind of scenario is a bit daunting.

The fee and interest side of the equation is also something to consider. The upfront fees and interest rates associated with these loans are generally higher than traditional loan products. While the amount of interest you owe builds up over time, the origination fees have to be paid upfront–and there are often “servicing fees” over the life of the loan. Once you tally all this together, and deduct it from your equity you might be surprised how much the bank gets for loaning you your own money.

So when would someone consider a reverse mortgage? Candidly, I think a reverse mortgage should be avoided until one has exhausted all other avenues. In many ways, you will get more equity out of your home if you sell it than if you take advantage of a Reverse Mortgage. If you still feel compelled to consider a RM product, then I would suggest you sit down and run the numbers with an accountant or financial planner you trust. Like with most things in life, it’s all a game of numbers.

It also never hurts to have an attorney review any lender paper work if you have any concerns. A brief, independent review is relatively inexpensive in the scheme of things.

• Cynthia Hurley
• R. Scott Seifert
• Charles Kramer
• Martin Thornthwaite

Please always free to call or e-mail me with any mortgage related questions you might have. 214.529.9622

President’s Day

 

For those of you enjoying this President’s Day off, here’s a list of things to do today with your family. Thanks, AroundTownKids for putting it together!

Happy Valentine’s Day

 

Hope you all have a great Valentine’s Day!

Social Insights: What does your job title say about you?

Confession time – I’m a bit of a language nerd. The subtle differences between two similar words can change the tone of a message, overuse of a word can strip it of its original value, and sloppy phrasing can change the intended meaning of a statement. For example, how often have you heard someone say something like, “everyone doesn’t have to attend the training meeting”, when what they really meant was, “not everyone has to attend the training meeting”? See what I mean? Words matter. Phrasing matters.

It’s particularly important to choose words carefully in business writing. If we’re not communicating clearly, completely, and concisely our messages will be misunderstood or ignored. No amount of product development or customer service initiatives will make up for poor communication. This is true not only for organizations, but for individuals as well. Personal branding has never been more important than it is right now, and I believe your job title is the first rung of the professional profile ladder.

Have you ever really looked at your job title and considered what it says about you? Are you a director, manager, or coordinator? If so, does your title communicate what you direct, manage, or coordinate? Does your title include trendy words like ninja, sherpa, guru, or maven? Those words send a message, but it may not be the one you were hoping to send. Assuming that you have some influence in choosing your job title, my recommendation is to clearly state what you actually do in words that prospects or recruiters will use to search for people in your field. Has anyone ever really searched LinkedIn for a sherpa? I know I haven’t.

Do you pay attention to job titles? What are some of the most descriptive or effective titles you’ve heard? And what are some of the least?

Any friend of Geoffrey’s is a friend of mine – if you have questions or concerns about this or any social media issue, please tell me about it! I’d love to hear from you. You can also read more about personal branding and social media on my blog.

Liz Marx | Owner/Strategist