Peter Fountain

Month: October 2022

Rethink your mortgage
real estate

Rethinking High Interest Rates

Oct 31, 2022 #interest rates, #living, #money, #real estate, #refinance by Pete

This past week interest rates for a 30-year mortgage went above 7% for the first time in recent memory. That alone would be shocking, but it is even more shocking considering that less than a year ago it was possible to get a mortgage for around 3% interest.

When compared to the 3% interest rate of a year ago, a 7% interest rate will add hundred of dollars to your monthly mortgage payment.

Of course the media has jumped on the increase and shares with us stories of buyers who can no loner afford to buy a home because of the increased monthly payments, and sellers who are struggling to sell their home because there are fewer buyers out there.

There is certainly truth to these things. Higher monthly payments will certainly push buyers out of the market, at least until interest rates go back down. Some sellers will not get the ridiculous offers their neighbor’s have gotten in the past couple years as the buyer pool shrinks.

As a real estate agent and a notary signing agent (I see hundreds of mortgage transactions a year), I’ve been challenging people to rethink some things, primarily how much home do they need?

When buying a home, it’s very common for a mortgage banker to tell a buyer how much of a loan they qualify for, and for an agent to use that number as a basis for a home search.

When people qualify for a $300,000 mortgage, they tend to go looking for a $300,000 home.

But I encourage people to consider if they really NEED a $300,000 home!

Just because the bank says they will give you $300,000 for a home doesn’t mean you have to take it.

Getting caught up in the hype and the emotion of buying a home is easy and it’s fair to say that many $300,000 homes are nicer than many $200,000 homes (although not always).

But what if you detach yourself from the emotion (and your mortgage broker’s constant phone calls)?

How much house do you really need? Do you want to pour every last dollar into your home leaving you with no headroom at all (financially).

More to the point, if the 7% interest rate makes a $300,000 home unaffordable, why not consider buying a $250,000 home, or even a $200,000 home?

Again, just because the bank will give you $300,000 doesn’t mean you have to take it!

Of course there are many variables to consider, but in many cases most people could find a lesser-priced home with which they would be perfectly happy.

The companies who lend us money love to push us right to the top. If you go to buy a car, the salesperson will take you right to the car at the very top of that range. Do you need a brand new car, or would a two-year-old car, with a much smaller price tag be sufficient? You can guess the salesperson’s answer to that question.

Your mortgage broker and your agent will tell you to look at those $300,000 homes. Why shouldn’t they? They all benefit from you buying a $300,00 home more than a $200,000 home.

While 7% interest rates will certainly price some people out of the market, I offer the opinion that many more people are pricing themselves out of the market because they want to spend every single dollar the bank will lend to them.

If you really want a home and interest rates are too high, find a less expensive home!

And let’s not forget, interest rates will come back down again. No one has a crystal ball to predict such things, but some very smart people, who make a living watching such things predict that interest rates will fall in 2023 (which is only a couple of months away).

It hurts that interest rates are more than double what they were a year ago and that is going to cause some people to put their home search on hold.

But for many, it’s also an opportunity to evaluate what they really need and how much they want to spend to get it.

business

Choose Wisely

Oct 30, 2022 #exercise, #fitness, #gym, #health, #personal trainer, #personal training, #workout by Pete

Have you considered hiring a personal trainer? Have you hired a personal trainer in the past but not gotten the results you hoped for? Are you intimidated by the very thought of hiring a trainer and setting foot in a gym?

Working with a personal trainer can boost your success rate by up to 30% (according to the Journal of Sports Science and Medicine), so working with a personal trainer seems like a logical step to take if you are serious about your health.

I’ve always believed that good health equals true wealth, and after college I decided to immerse myself in the fitness business in the hopes of helping people get fit and feel great.

I started by becoming a certified personal trainer, learning as much as I could about exercise, nutrition, and wellness. I spent most of my waking hours in the gym training people, learning and observing. Over time it became apparent that the best personal trainers were not always the ones with the most impressive credentials or the most years in the business.

Becoming a personal trainer is fairly easy, in most cases you just have to pass a test. Some certifications are more rigorous than others and it can be difficult to determine the good trainers from the bad.

Conventional wisdom says to look for someone with top-notch certifications or even a formal degree in exercise science, and someone with lots of experience.

Education and experience are important, but I am here to offer the opinion that there are other factors to consider that are equally important. When looking for a personal trainer, consider the following:

  • Personality. I believe this is the most important factor. Are they laid back or intense? Will they holler at you during sets or will they gently encourage you? Do they follow through (if they say they will email you a diet or some information, so they actually do it)? Overall, do you feel comfortable with them?
  • Availability. We are all busier than ever. It’s important that a trainer has time for you that fits your life.
  • Communication. How do they communicate? Are they the strong silent type? Do they speak in industry jargon or do they communicate in a way that you clearly understand the message? Do they answer questions without getting defensive or dismissive?
  • Motivation. Do they inspire you to follow through on your workouts and health plans? During your session to they encourage you and keep you pressing forward? Do you look forward to your next session, or do you dread it?
  • Patience. Teaching people how to exercise properly can be frustrating. A personal trainer has likely become an expert on various movements, but helping someone learn something that now comes naturally to them can be trying. It takes patience, and the ability to keep you motivated while you learn, not matter how fast or slow the process.
  • Good listener. We have two ears and one mouth for a reason! Your trainer should listen to you, ask questions, and clarify what you are saying. If you don’t feel heard and understood, it’s time to move on.
  • Passionate. At the gym the other day I watcher a trainer walk their client through a workout. The spent 60% of the time on their phone. You want trainer who is not only into fitness, but is into your success. You don’t necessarily need a Richard Simmons type character (unless you like that), but someone who is passionate about your goals and your success is vital to your success.

Education and experience are important when considering who to hire as your personal trainer, but so to are the intangible factors like passion, listening and patience.

Money spent on a personal trainer, and on your health in general makes for a wise investment that can pay dividends for a lifetime. Make sure to choose your personal trainer wisely.

real estate

Buyer Be Prepared

Oct 29, 2022 #home advice, #home buyer, #home buying by Pete

5 Tips For Making a Winning Offer on a Home

If you are trying to buy a house right now, you’ve realized that it’s a jungle out there! Low inventory, high demand, high interest rates, and skyrocketing prices have all converged to form a perfect storm of misery for buyer’s.

There is very much a sense of despair amongst buyer’s right now, and rightly so. Many have given up. Other’s drag themselves to showings while muttering under their breath about wasting their time.

But all is not lost! despite the odds, there are several things buyers can do to help tip the tables in their favor.

  • Get preapproved for a mortgage. This goes without saying right now. Almost every seller requires a preapproval letter because they can. Requiring a preapproval letter helps weed out the tire kickers and saves everyone time. If possible, use a reputable local lender for your mortgage. They can be easier to work with, especially where communication is concerned.
  • Know your budget. Knowing your budget before your start looking at houses will help keep you grounded. House hunting can become an emotional process, and it’s easy to get swept up in the emotions of finding a house you really love, despite the price. Part of your budget must include the numbers for your mortgage payment (principal and interest), taxes, insurance, utilities, and maintenance. Too many people overlook things like taxes and insurance. Both can add considerably to your monthly payment thus making an otherwise affordable looking home unaffordable.
  • Decide on must haves vs nice to haves. Write these down! What must your house have? Consider the basics like number of bedrooms and bathrooms and square footage, but don’t forget about things like central air, a deck, or a garage. Also write down things you would like, but aren’t necessarily deal breakers. Having a solid list will make your house hunting much more focused and maximize your time.
  • Decide where you can be flexible. Is your desired closing date flexible? Do you want and inspection (yes, you do) or can you live with an inspection for informational purposes only? Can you put more money down for the earnest money deposit? Do you want to offer to help pay the seller’s closing costs? Are you willing to rent the house back to the seller for a period of time?
  • Be prepared to move. Not move as in moving your furniture, move as in making a decisive decision to buy. If you’ve done your homework and you are as specific as possible you will be prepared to make a decisive move and make the best possible offer for the house you want. Things go quickly in this market, and being prepared can make the difference between getting a house you want and losing out.

Here’s a bonus sixth tip: Have thick skin! You will probably hear the word “NO” numerous times. You may be subjected to seemingly unfair competition or unreasonable demands from sellers. You may have a house all locked up only to have someone swoop in with a cash offer that supplants yours.

It’s tough out there. It’s frustrating, maddening, and mystifying. The worst thing you can do is to let it get to you. Learn to take a deep breath. Learn to let things go. Remember that this is not the end of the world. The house of your dreams is out there, but you will never find it if you let things get you down until you eventually give up.