Volatility in Stock Market Likely to Continue this Week

The stock market is likely to continue its volatility as it swings between those who believe the economy is in the birth stages of recovery versus those who believe the rebound will be long and difficult. Everything rests on the reports due this week: retail sales, manufacturing, housing starts, inflation, and the weekly unemployment benefit claims.

The retail sales report will set the tone for the week. Economists have predicted a 0.8% rise for October after September's drop of 1.5%. Strong consumer spending is needed to support a rebound. A disappointment will send stocks falling. Retailers' sales outlooks are likely to be even more important than last quarter's results, with the outcome setting the tone for the holiday season.

The housing report due Wednesday is expected to show home starts rose 2% in October with building permits increasing 1%. Anything less will cause the pendulum to swing towards those who believe the rebound will be long and difficult.

Inflation is expected to have little effect based on Federal Reserve Chairman Ben Bernanke's comments that inflation is "not a near-term issue."

This constant volatility only confirms my belief that real estate continues to be the best investment anyone can make. Look for my email this week regarding ways you can get your foot in the door for buying a home or investment property. If you are not yet on my email list, just send a reply blog with your name and email address to be added.

This is definitely a time to buy real estate! Especially now when the prices continue to be low. Call me to discuss your options.

Why Make The Buy Now?

Mortgage rates over the past couple of months have been in the 5% range for a 30 year fixed and 4.5% for a 15 year fixed. Many of the experts on wall street believe that rates will begin to rise over the next 45 to 60 days. Rates could see 6% by year end. A person that has been thinking about buying a home - should strongly consider making the buy now.

The difference of 1% can be very costly to the current home buyer. While the difference in payment on a $250,000 home is roughly $100.00 per month the overall interest cost is nearly $2,500 per year. Over the life of that loan a borrower would save over $56,000.

That same $2,500 per year placed in a basic investment or savings product (with say my friend Adriane Sasaki at Edward Jones) could potentially be worth $325,000 in the same 30 year period.

The numbers begin to get really exciting! Home values have been declining providing for some great values in the market place. That combined withe eager sellers - creates a very advantages environment for home purchasing.

Don't Lose Your Home - Restructure Your Loan

In this time of economic unrest - many families are facing the question "what do we do with our home?" Lenders requirements are too tight to let us refinance, our value has dropped below our current balance, we have gotten behind on the mortgage payment and all looks lost!

Well all is not lost! There are things you can do that will help you stay in your home and get a payment that is in line with your current income and reduce your balance to reflect the current market conditions. It is called a restructure.

A restructure can not make up for the credit dings but can get you back on track without posting a foreclosure on your credit report. Banks are not in the mood or the mindset of taking back homes and are working to keep you in your home. The problem is that they are not working with the client very well and after months of negotiating clients are ending up with a foreclosure. The key is to work with a reputable company to get involved in the legal process for you. They work directly with the legal and loss mitigation departments and can speed through the tireless and endless paperwork quickly and easily. While there is a fee - most restructure costs can be made up in just a few months with the savings in the payment.

Don't lose your home - restructure your loan.

What's The "Score"

Something that is getting much attention in the media is credit. You are hearing things like lenders are tightening credit or standards of credit are increasing. What they are really telling you is that you, now more than ever, need to understand your personal credit and keep an eye on your credit score.

What they aren't telling you is that creditors aren't making it easy for you to do just that. Your credit score can range from 300 to 850. When a creditor pulls your credit one of the three credit reporting agencies: Experian, Equifax or Trans-Union will provide that creditor with a score based on 5 factors.

• 35% of your score is built around your payment history - how well you have paid on the accounts you have open.
• 30% of your score is based on the amount of outstanding debt you have and in particular the amount of your revolving debt and how much of it you use.
• 15% of your score is based on the length of time your accounts have been open. The newer accounts get lower scores.
• 10% of your score is based on new credit and how many new accounts you are trying to get.
• 10% of your score is based on the types of credit. A higher score will reflect various types of credit and experience with those credit types.

One issue that you may be having is that your creditor is lowering your available balance on your revolving credit to match your balance. This is having an extremely negative affect on your credit report. Without your permission - it appears that you have maxed out a credit card that may have only been at 50% of the available balance.

This could cause your credit score to drop and for you to have to start paying higher rates on loans and insurance.

Two great resources for you are http://www.freecreditreport.com/ and http://www.optoutprescreen.com/

By keeping track of your credit and opting out of free promotions you could save thousands.

America Is Waiting For You

In a follow up to my post yesterday. Everything is working together to get the American economy back on track except the American consumer. I referenced yesterday that I don't understand what we are waiting for. Well, America is waiting for you. The government and wall street are bringing rates down, home prices are down, gas prices are down and yet we are not pulling the trigger on those new home purchases and refinances.

> As with every recession in history - the housing market drives the economy up and out. New home purchases and refinances drive nearly every sector of the economy. Retail, manufacturing, service, transportation, construction, etc. Americans spend more money in the first six months of after a new home purchase than at any other time in the home. Remodelers obviously spend on the remodel and redecorating which infuses cash into the same sectors.

> The recession can come to a close if Americans will pull the trigger and buy. Many of the Realtors that I talk too tell me that they have plenty of clients looking but no one is buying. They have too many options and are nervous to make the decision.

> John F. Kennedy said in his inaugural address "Ask not what your country can do for you, but what you can do for your country". Once again America needs you. Make the decision - find the home - make a great deal - get your financing in place and pull the trigger. America is waiting for you.

Watch Out Rates are Falling...

I am not sure what we are waiting for... REFINANCE NOW!!!

Mortgage rates are the lowest they have been in 40 years. All of the economic forces are working together to drive them down to some real money saving levels. For instance:

1. The feds continue to lower rates to stimulate the credit markets

2. The lenders are finding creative ways using the bail out dollars to loosen credit and lend more money

3. Gas prices are at the lowest levels in 5 years

4. We are welcoming a new president into office in the next couple of weeks

5. Iraq no longer holds the top media billing and some experts think the war is coming to a close.

This is all working together to get rates down into the low 5's and in some cases the mid 4's.

If you need some guidance on when you should look to purchase or refinance your home, give me a call or email and I would love to walk through the process with you step by step.

Money to Lend

I have been getting quite a few questions about where to get money to fund business. Everyone knows that the small business is the back bone of the American economy and without credit that makes business really tough to do. Small businesses feed their businesses on credit and without it they can hardly survive.

Traditional banks have not yet loosed their credit guidelines. They are holding tight to the purse strings. The 700 billion, while it was dispersed from the feds, has yet to loosen the credit culture. In fact, banks are tightening credit. We are seeing more and more loans declined that would have been approved even a year ago. So what is a business to do?...

There are alternatives to bank financing. I know that businesses have been trained that when you need money you go to the bank and the manager looks over your financials and makes a decision to give you money or not. Without any regard to the severity of the decision that is in their hands. Today those hands are keeping their money tight fisted...Well today is a new day.

There are non-traditional sources of capital in the market place eager to lend you money. Many of them are asset based and need to see good collateral positions on your property or very little depreciation on your equipment, but they are willing to lend. They are using sources from investors that have pooled their money together and formed capital lending companies that are still making good decisions to lend.

You can get the money that you need. You have to be creative. You need a commercial broker, such as myself, to hunt these funds down for you and you must be relentless, but you can do it. There is money to lend.