Looking for what's new and what's now in the real estate world. The Jersey Group and Bob The Broker have joined forces on this blog dedicated to all aspects of the real estate business.

Over the past two weeks, I have had so much I have wanted to say that I can't seem to say anything at all. So instead of doing a blog post on a specific mortgage/real estate related topic, I thought I would have some fun today.
                                                                                          

There are a lot of bullet points to read, a lot of links to follow (All in blue), and if you're not careful, you might learn something before it's done.

*A tea house, way up high: Someone forwarded me these photos of this pretty tea house waaaay up high on a mountaintop somewhere in China. You know the one, scaling mountains, gondolas and wood planks not to mention adverse weather for a free cup of tea. I had to find out if it was really a restaurant. I found Mt Huashan Hiking Trail.

*Stake Your Life On Your Home - The buyer of this home will be the named beneficiary to a 10-year, $500,000 term life insurance policy. If the home owner dies in the next 10 years, the price of the home ($498,900) is covered. In case you are a betting person and wondering about odds, the owner is 69.

*Your personal loan officer may have left the business: Loan officers like to stay in touch with their clients so if you haven't been contacted by your loan officer in a while, it's possible you've been "orphaned". Get yourself adopted. When rates fall, you'll find out about it in advance instead of finding out too late. The adoption process is easy – just send me an email.

*Life happens: (Trust me, this is talking from true experience) Personal injury and illness is 7 times more likely to lead to a foreclosure than adjusting mortgage payments. This is why disability insurance is a must for every homeowner. Yes, it can be expensive and confusing, but that doesn't mean you shouldn't have it. I'm happy to refer a reputable insurance advisor to talk with you -- just email me about it.

*Shameless plug: Websites of friends I frequent and recommend: Liquid Discount; Olive Branch Papery; Passion Travel; We-Care;

*401(k) loans as down payments: A growing number of Americans are using 401(k) loans to fund a down payment. Sure, you're paying interest on the money you borrow, but your dollars are taxed twice and you damage your compounding interest. It's not the no-brainer most people think. I'm happy to refer a reputable financial planner to talk with you -- just email me about it.

*Condos are the other shoe: Mortgage guidelines are about to get very tough for condo owners. If you live in a condo, or want to buy one, it won't be as easy or cheap to get financing as it is right now.

*An idea for when gas prices fall: By my math, high gas prices are adding $50 per month to a household's budget. That's $600 per a year or about the cost of a $1,000,000 term life insurance policy for a healthy person. If you can make room in your budget for gasoline today, you can make room for life insurance later.

                                                                   
*Appraisal challenges: Because of "down" markets, lenders want appraisers to find comparable homes that have sold within 30 days. No comps, no mortgage approval. Strangely, the very definition of a "down" market is that homes aren't selling. As a result, a lot of applications have "died" in appraisal review.

*Shameless Anti-Plug: I still don’t like Starbucks.
                               
*Passing the buck to FHA: Fannie and Freddie's risk-based fees are making conforming mortgages super-expensive for all but the lowest-risk mortgage applicants. For high-risk borrowers, the cheaper alternative is FHA. I don't have to tell you how this story's going to end.

*Appraisal challenges (Part II): It's a bad time to buy the nicest home in the neighborhood. Not for investment reasons, but because an appraiser won't be able to find comparable homes for sale. No recent comps, no mortgage approval.
                                                                              
*Spending money to make money: The current cost of making a penny and a nickel are 1.26 cents and 7.7 cents, respectively. The Treasury "lost" $100 million minting them last year.

*Building a referral Business: Sometimes you just have to ask for what you want. Many clients will be willing to refer you to friends or colleagues, but they may not even think about it unless you bring it up. Remind customers that referrals are a big part of your business, and ask them if they know of anyone that could benefit from your services. If you have done an exceptional job for them, chances are they will make an effort to help you in this way. So if you know anybody – please send me an email.