FIVE LEVELS CONSULTING
The Strength and stability of u. s. bank
3/15/2023
Here's some GOOD news in today's real estate and banking market. When financial uncertainties in the market arise, you can be confident in your choice in U.S. Bank for many reasons. And if you wish to know more about real estate investments and loan options? I'm here for you anytime. Here are just a few of the strengths of U.S. Bank ... and you'll find much more detail on the attached document. - Strong, diversified business mix. - Strength in our financial position. - Strength in our liquidity position. - Investment portfolio observations. - Our personal commitment to you, our customer. ![]()
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Let’s slow down a bit, take a breath, and find the advantages for both sellers and buyers in today’s real estate market. By the way, these tips are good for nearly every market condition – today or otherwise - including when home prices rise or slow, when interest rates increase or decrease, and whether inventory is high or low.
Real estate investments can deliver long term wealth and cashflow opportunities. We recommend thoughtful decisions rather than emotional impulsive choices. This approach will most likely lead to more money in our pockets and more stable investments. What’s more, cashflow can happen quickly for savvy investors by working with creative loan officers, wise realtors, and motivated sellers. Aaaand breathe… here are four advantages in today’s (and tomorrow’s) real estate market. (1) Interest Rates have stabilized. Yes, rates rose throughout 2022, dipped a bit, rose again and then dipped again. They’ll continue to do the same in 2023 and 2024. All said, rates change daily and at times, more than once a day. They always have and probably always will. What we must do to acclimate to the real estate market, is adjust our mindset. If we own our home, we are a real estate investor. And as a real estate investor watching and reacting to interest rates on a daily or weekly basis will drive us batty. Instead, let’s find an honorable and reliable loan officer, share with them our long-term real estate plans, and then let our loan officer keep us informed on any advantageous rate changes and loan products for our personal plan. Establish a relationship a reliable Realtor and they can regularly share with you housing opportunities. In general, when interest rates change, up or down, in amounts of .125%, .25%, or even .5% - it seems daunting, but in many cases, our monthly payment over a 30-year loan term do not drastically change. Of course, this depends on loan size, type of investment property, and some other minor factors. The more we understand the better – hence my recommendation to surround ourselves with an honorable real estate agent and loan officer. (2) Home prices are decelerating, not depreciating. Meaning, if we’re a seller, houses are holding their value, and in time, values will continue to rise, as they always have. If we’re a buyer, there are many affordable options in great neighborhoods. There are also opportunities for seller buydowns, seller credits, and lender credits – which will save us more money. When considering a purchase, talk to a loan officer who can get you pre-qualified, or better, pre-approved. This way, when we’re searching with your favorite Realtor, we already know what we can afford, and sellers will see that we are one step ahead of the next potential buyer. (3) Housing inventory continues to rise. This means there are more options for homebuyers in every category of home, including single family, condominium, townhouse, and multi-family. The great news is there are homes that are affordable for nearly any price point – let’s simply ask our real estate agent to help us find our dream home in our favorite community. And if we don’t yet have an agent or a loan officer, I have some awesome people for you to meet. 😉 (4) Real Estate investors are buying. Good advice in any industry is to watch and emulate those who are experienced and successful. Throughout our lives, we do this often. We learn from teachers, coaches, instructors, parents, and – yes – real estate investors. If investors have continued to purchase properties over the past year, they see an advantage. And so should we. Investing in ourselves is important and necessary for our continued wealth accumulation and financial stability. All four of these reasons help deliver a level of optimism to this market – banks are adjusting their policies, so loan officers now have more options to qualify homebuyers. Realtors and sellers are working to make homes easier to sell through curb appeal enhancements, upgrades, seller credits, competitive pricing, and clean offer negotiations. The industry experts are working on behalf of the buyers and sellers. Here's where we are now and what we must understand as real estate investors… Interest rates have consistently declined for the past 30+ years until they hit the lowest-ever point at under 3% for qualified buyers through Q1 2022. Therefore, our real estate investor mindset for much or most of our lives has been, “rates decrease over time.” When rates started to go up a bit, we weren’t used to seeing it. So, it took us a bit to readjust our mindset when rates increased from that lowest-of-lows 3 percent mark. Today, rates within the 5-7% range are still common, and they are good loan investments. Many buyers are surprised when they find out how affordable and cashflow efficient home loans can be. My final tip and the best way to begin and continue our real estate journey – find a realtor and loan officer we can trust. I’ll see you out there! Yours, Blaise A Homebuyer Advantage, Right Now
12/21/2022
Today in the Denver market – and in many real estate markets around the country – homebuyers have an advantage. Here’s why…
Year-over-year inventory is up, so there are more homes on the market today compared to 2021. Plus, at the beginning of winter we witness a traditional slight decrease in inventory. Therefore, during this season, the clients with homes still active in the market tend to be motivated to sell. And motivated sellers allow room for negotiation. What’s best – there are purchase options that can be a win for BOTH the buyer and the seller. And the realtors, and the title company, and the loan officer, and the neighborhood. Buyers save tens-of-thousands of dollars - and these options DO NOT include reducing the home price. So, let’s call it a win-win-win-win-win-win.😊 ‘How can that be?’ you might say. Because people in the real estate industry can be very creative, resourceful, and motivated as well. And the best ones, put our clients first. Let’s take a closer look at one of the best options for all involved… Buydown Loan Programs This is a seller incentive with no additional costs to the homebuyer. Buydown loan options provides a temporary reduction in homebuyer interest rate for the first 1, 2, or 3 years of the loan. After which, the rate will revert to a fixed rate for the remainder of the loan. For example, on a 3-2-1 buydown, the homebuyer’s starting interest rate will be 3% lower for the first year, 2% lower the second year, and 1% lower the third year, before reaching the final fixed rate on year four through the term. There are several buydown programs available for buyers looking for a primary residence or a second home – including 3-2-1 buydowns, 2-2 buydowns, and 2-1 buydowns, to name a few. In best-case scenarios, buyers may also be able to tap into additional money-saving opportunities for down payments and/or closing cost reduction incentives – these include gifts from relatives, state and federal down payment assistance programs, and lender credits. For instance, on the lender credit option, U.S. Bank offers their qualified customers a percentage off their loan amount to help with closing costs up to $1,000. And if you’re not yet a U.S. Bank customer, all it takes is to open a qualified checking account. Super easy. The buydown option is a favorite for many in the real estate industry because of the advantages and benefits to all parties involved:
Savvy Loan Officers will partner with your realtor to work out the best scenario for you. Yes, it’s a buyers real estate market. Personally, I’m always looking to buy. And with these types of money-saving options, it’s getting much easier to invest. Yours, Blaise Blaise Patrick Tracy Loan Officer | NMLS #2299123 mobile 310.200.9180 | office 303.585.4167 blaise.tracy@usbank.com | linkedin.com/in/blaisetracy Learn More | Apply Here Open for mortgage loans in all 50 United States. Purchase. Refinance. Cashout. Home Equity. Land. Lot Purchase. Construction. VA and FHA loan options. I Got a 3% Interest Rate – Now What?
6/2/2022
It’s been such a wonderful Refi Ride for the past 40 years. Interest rates down, home prices up. Beautiful scenario for us homeowners and real estate investors. Many of us continued to refinance our homes every few years as the rates have continuously dropped since the 1980s.
Now interest rates are leveling out and creeping up and homeowners aren’t sure what to do. The good news – we have options. Investing in ourselves is wise and property is an excellent choice. Home prices will rise; they always have. Unless we flip houses for a living, we don’t have to worry about the buy-high / sell low scenario because home purchases are a longer-term investment. Heck, it doesn’t even take that long anymore to see terrific equity accumulation. I’ve personally seen many Colorado, California, and Nevada neighborhoods increase their equity by $300,000, $400,000, $500,000 or more – in just the past 10 years. Here are four actions we can take to capitalize on our real estate investments today. Plus, for each item, I’ve included factors to consider and benefits we will enjoy… PURCHASE
SELL
REFINANCE
HELOC
Find a partner you trust who is willing to walk through options with you – and no matter the market, let’s turn these next 40 years into a financial boom for ourselves! I hope this was helpful. Yours, Blaise Blaise Patrick Tracy Loan Officer | NMLS #2299123 mobile 310.200.9180 | office 303.585.4167 blaise.tracy@usbank.com | linkedin.com/in/blaisetracy Learn More | Apply Here Open for mortgage loans in all 50 United States. Purchase. Refinance. Cashout. Home Equity. Land. Lot Purchase. Construction. VA and FHA loan options. 2022 has seen the greatest rise in home mortgage interest rates since the 1980’s – and it’s still Spring.
That perspective sounds scary, doesn’t it? Similarly, the perspective of the screams of people on a roller coaster sounds scary. But instead of fear, they are experiencing an immediate thrill, a sense of joy - a positive emotion. Let us dissect the ‘fear’ of rising interest rates. And yes, I’m comparing interest rates to a roller coaster ride. Why? Because of the ups-and-downs that ALWAYS occur when we speak of real estate, buying and selling, interest rates, and investments. First, here are some facts…
Many times, our actions are driven by our emotions. These actions can be fueled by the people around us – what they say and how they react. If our behaviors are emotionally driven, the outcomes are often difficult and dangerous. Here’s a scenario that illustrates the previous statement:
Home ownership is a longer-term investment. Average time people stay in their homes is 7-10 years. Remember the 2008 recession and home value drop – devastating right? Seemed like it at the time, however it ONLY took 3.5 years for home prices to recover. That’s all. They’ve continued to increase ever since. Here is a quick list of terminology and then TWO scenarios on how the rise in interest rates PRACTICALLY impact us. TERMINOLOGY
SCENARIO A: using a $200,000 loan amount * 4% Interest Rate $955 monthly payment (P&I) 5% Interest Rate $1,074 monthly payment (P&I) 6% Interest Rate $1,199 monthly payment (P&I) SCENARIO B: using a $400,000 loan amount * 4% Interest Rate $1,910 monthly payment (P&I) 5% Interest Rate $2,147 monthly payment (P&I) 6% Interest Rate $2,398 monthly payment (P&I) Bottom line, homeownership has a LOT of benefits. My advice: Buy now and if interest rates rise, we’ve obtained a lower rate. If they fall, we refinance. Additionally, if as a homeowner we have equity, we can pull out some cash and still keep our monthly payments low. More on that in a future article – or you can call me today to hear more about this option. 😊 * these are examples for educational purposes only; they are not listings of today’s interest rates. Yours, Blaise Blaise Patrick Tracy Loan Officer | NMLS #2299123 mobile 310.200.9180 | office 303.585.4167 blaise.tracy@usbank.com | linkedin.com/in/blaisetracy Learn More | Apply Here Open for mortgage loans in all 50 United States. Purchase. Refinance. Cashout. Home Equity. Land. Lot Purchase. Construction. VA and FHA loan options. Home Ownership. Should we? Should we never? Or should we not yet?
The answer is a confident “Yes we should.” and with a clause of “As soon as possible.” My answer is yes, because I’ve done it many times, I’ve helped others do it, and we’ve always benefited. Some were glorious goldmine investments; others were tougher situations that simply needed a bit more love and attention. Bottom line: All were good investments. All. Of. Them. But what about… the housing market?… the interest rates?… the bubble bursting?... Why buy? Here are four reasons: MAKE MONEY House prices have always gone up. Always. Yes, they sometimes stall or slightly dip, but equity accumulates with each passing payment and with each passing year. We’re investing in ourselves. In time, real estate can help us make more money than most other investments because over time it is consistent and reliable. Here’s proof of value – ask your parents what they paid for their home.
SAVE MONEY With equity, we make money. With write-offs, we save money. Either way, real estate is a good financial investment. There are wonderful tax benefits to owning a home or investing in property. Since many more people are working from home these days, the value in this space has increased dramatically.
OPTIONS Live in it, rent it, sell it. Do all three over time. All have benefits. As long as we take care of it, we have options. The better we care for it, the more value it has over time and the satisfaction of living in our home increases. Whether interest rates are going up or down, here’s our plan – purchase the home. If interest rates go up, we’re locked into the lower rate. If they go down, we refinance.
DREAMS I call it home-sweet-home. It’s ours. We own it. And with this ownership good things develop within us, including personal responsibility, character development, gratitude, and we may even improve our fix-it and creative skills! We can beautify it to our taste and remodel if we wish. It feels good.
Yours, Blaise Blaise Patrick Tracy Loan Officer | NMLS #2299123 mobile 310.200.9180 | office 303.585.4167 blaise.tracy@usbank.com | linkedin.com/in/blaisetracy Learn More | Apply Here Open for mortgage loans in all 50 United States. Purchase. Refinance. Cashout. Home Equity. Land. Lot Purchase. Construction. VA and FHA loan options. |
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