Thursday, February 22, 2018 / by Carl Gentile
Mortgage Rates on FIRE! Home Prices Up In Smoke?
Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year.
What impact will rising rates have on house values?
Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop.
However, in a good economy, rising mortgage rates increase demand as many prospective purchasers immediately jump off the fence to guarantee they get the lower rate.
Let’s look at home prices the last four times mortgage rates increased dramatically.
In each case, home prices APPRECIATED and did not depreciate. No one is projecting as dramatic an increase in rates as the examples above. Most are projecting an increase of approximately 1% by the ...
Monday, February 19, 2018 / by Carl Gentile
There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:
“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”
Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opp ...
Sunday, January 7, 2018 / by Carl Gentile
With the new tax laws and states struggling to collect revenues and in turn raising tax rates, the well to do, and even the not so well to do, are looking for ways to minimize their income tax bills. Income tax coupled with state death taxes - think about Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York and Pennsylvania - or even just think of one, California, with the highest personal income tax rate of 13.3% but no state death tax, the incentives for the wealthy to look for a more desirable (as in less taxing) place to call home are enormous.
5 Advantages of Becoming a Florida Resident
Florida is a state that is frequently mentioned when the wealthy are looking to make a move to a less taxing state. But the absence of taxes is not hte only reason Florida is such an attractive place for the well to do to move. Couple beautiful beaches and weather with the following five things and Florida stands out pretty quickly as a place for the well to do, as well as ...