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| In light of the record low interest rates, I wanted to show the real power of buying a house with a low rate. For this example I will look at a $200,000 mortgage in two distinct time periods, with the only variable being the interest rate (insuarance, PMI, fees, taxes, etc. are not included in this example).
In August of 2008, the average 30 yr FRM rate was 7.00% (hsh.com), with a $200,000 mortgage (P & I only), your monthly payments would be $1,331 and you would pay a total of $279,016 in interest over the life of the mortgage. Yesterday the average 30 yr FRM was reported to be 4.57%, with a $200,000 mortgage (P & I only), your monthly payments would be $1,022, and you would pay a total of $167,816 in interest over the life of the loan.
Just by having a few points lower interest rate, you would be saving over $111,000 in interest over the life of the loan, and hundreds per month on your payment. To look at it another way, for the same P & I monthly payment of $1,331, you could have a $200,000 mortgage at 7.00% or a $260,000 mortgage at 4.57%.
If you also factor in the incredible buyers market we are now in, what you can buy for $260,000 today would not even compare to what you could buy for $200,000 2 years ago. I have recently been helping many buyers who understand the power of these low rates, and I hope that this example will educate others so they might not have any regrets when interest rates start to climb again. | | |
| In a career that is almost entirely dependent on self-motivation, it can become very easy to slide into stagnation, even to the point of accepting mediocrity. I have come to realize that if I don't make myself aware of this and attack it head on, I will have no choice but to circum to it.
Developing simple and successful habits is one of the best ways I have found to combat mediocrity. Things like waking up early, exercising, scheduling, and planning down-time are vital to continued success. I am amazed at the difference in the amount of work I complete on days that I wake up after 8 and before 8. I also find that when I don’t purposefully schedule time for marketing, phone calls, and down-time, I feel overwhelmed and pressured.
I know I need to purposefully and continually develop these habits, since success only comes from a continued pursuit of right living, and the alternative of mediocrity is simply not an option. | | |
| Lately I have doing far too much of the former. The tax credit is coming to an end and people are starting to pile in to try and qualify. I felt like I had a good handle on the balance between work and down-time, but now I have been starting to ask myself, at what point to I start telling people no?
Don't get me wrong, I'm certainly in no position to complain, and this steady increase in business is certainly an undeserved blessing, but my dilemma still persists. I find that when I work too long, I can quickly develop a sense of bitterness and unimportance to anything that is not work related, but swinging to the other extreme, of pure slothfulness is just as debilitating. What ever happened to the good ol' 40 hour work week?
I guess at the end of the day, there is no quick fix to the dilemma, its all about consistently striving for that balance. Work is needed, but if we put it above all else, we will soon realize that our life has been wasted in the endless pursuit. | | |
| I think about the definition of instability, how it always denotes a negative meaning, in both personalities, jobs, and life in general. I have been realizing lately, however, that there really is value in it.
As a Realtor, my job could easily be the definition of instability at work, especially in this economy. Many of my clients have been pursuing foreclosures, and recently about one quarter of all those on the market have been littered with liens. I have also seen clients loose their jobs or get relocated while we were under contract, causing their financing to fall through.
I think because of this instability, I have grown stronger, both in the way I live my life and in the way I run my business. Instability forces growth, but I also think it creates a unique sense of excitement. Each day is unique and filled with the opportunity for stress and worry, but with each new crazy situation, I get two new leads. At the end of every day I can't help but say that God is good. | | |
| The year is about to end, as is the decade. Looking back, all I can do is smile. Life has certainly been good so far and I'm excited to see it continue to get better!
This last year I was privileged with buying and rehabbing two homes here in Charlotte. I certainly felt the stressed at times, but I think I've learned a little better about how to deal with it.
As a real estate broker during one of the worst real estate downturns of all time, I truly feel blessed to have a continued stream of business. I even surpassed my 2009 goal for clients. With most economists and industry experts forecasting an improving economy for 2010, as well as the extended first time buyer's tax credit, I'm thinking 2010 is going to be a great year! | | |
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