The Right Place at the Right Time
“Your biggest break can come from never quitting. Being at the right place at the right time can only happen when you keep moving toward the next opportunity.” – Arthur Pine.
I have no clue who Mr. Pine is, but I like the quote. The best thing about the real estate market crashing was that it weeded out all the realtors who had no clue what they were doing. By reading this today you are at the right place at the right time. Your time is now! (for more inspiration, keep on reading…)
Mortgage 101: What is an ARM?
After seeing The Usual Suspects for the 3rd time I finally got the ending. After the first two times, I just had to fake like I understood when friends would talk about it. ARMS are the Keyser Soze of the mortgage world. People think they understand them, but most don’t know the whole story. In a nutshell, an ARM is a 30 year loan where the interest rate is fixed for a certain period of time (1, 3, 5, 7, and 10 years). The five year ARM is the most common. For five years the rate stays the same – and if you haven’t sold or refinance during that 5 years – the rate can adjust up and down the 6th year, 7th year, 8th year, etc. Most ARMs can adjust 5% over where they started (i.e. if you are at 4% now it can go as high as 9%). How do they adjust? By taking the margin (this is a percentage attached to the ARM that runs around 2.50%) and adding it to the LIBOR which stands for the London Interbank Offered Rate (not a bad acronym, although the best acronym belongs to the musical group Agnetha, Bjorn, Benny, and Annifrid). Banks offer better rates on ARMs because the interest rate is not locked in for a long period of time. I recommend ARMs for people who know they will not live in a home more than 5 years.
10 year bonds got hammered last week and yesterday, but rates still remain under 5%. Many economists think we are going to come out of this recession sooner than later. This is bad for rates but good for the economy (which of course will lead to more home purchases).
Don’t forget to hold the date of Monday, June 1st – because we are going to party like its 1999! Food, drink, and fun will happen from 6:00-8:00 at Jameson Real Estate, 425 West North Avenue.
Like the SAT’s, I’ve thrown a lot of easy ones out there for you to gain your confidence, but now the questions get harder – hope you’re up for the challenge. Guess today’s question right and win a $5.00 Starbucks gift card. Just call me or email me your answer. Who am I? “I turn 44 today. I became the first African-American child actor to have a recurring role on a successful TV series, The Waltons. I also appeared on Little House on the Prairie, and in the landmark miniseries Roots. I appeared on a sitcom from 1978-1986 with two other kids whose personal lives were just as messed up as mine. In my 20’s I was addicted to cocaine. In 1988 I was arrested for the attempted murder of my dealer. My attorney Johnnie Cochran successfully defended me and kept me out of jail. It’s not easy making a living after being a childhood star, but I’ll milk it when I can – like appearing on VH-1’s Surreal Life or defeating Vanilla Ice on a 2002 episode of Celebrity Boxing. Contrary to popular belief, I do know what I’m talking about.