Home prices have risen over 40% since 2006. This has prompted another round of media fearmongering that a housing bubble is imminent.
As you might have recognized, the media has been talking about a housing bubble for the past several years, only to see home prices continue to be well supported.
Is Today’s Market Like The Bubble of 15 Years Ago?
Comparing today’s housing market to the market in 2006 requires us to understand some key differences to help us see the full picture. Let’s break that down.
The majority of individuals who buy homes do so based upon monthly payment. Therefore, we must consider differences in mortgage interest rates, as well as differences in household income between the market in 2006 and today.
Mortgage rates in 2006 ran about 3% higher than interest rates that are available today. This helps make the monthly payment today much lower, even in some cases where the amount borrowed is higher.
Meanwhile, average hourly earnings have increased by 55% from 2006 to today, according to the Bureau of Labor Statistics.
Homes Are Actually MORE Affordable Today
Because of the rise in income, as well as the drop in interest rates, the cost to purchase a home today appears to be significantly more affordable than it was in 2006.
Additionally, today’s appreciation is due to record low home inventory levels and strong demographic demand, which wasn’t the case in 2006.
Don’t let the media scare you out of all the wonderful benefits of home ownership. Contact me today to find out more!
Owning investment properties can be a great way to earn extra income. I’m linking today to an article from Peter Warden at The Mortgage Reports on a fantastic article for would be real estate investors.
Whether it’s a career choice or an extra source of income, becoming a landlord requires hard work, knowledge, and time. The idea of rent collection as a source of passive income attracts many new landlords to this profession.
But experienced landlords know this job requires an active approach. The more you work to maintain properties, find the right tenants, and keep track of all the details, the more successful you can be.
Many of my clients have found that owning rental property is one of the best financial moves they ever made.
At the same time, owning rental properties isn’t easy and involves a good deal of effort. However, the financial rewards can make all that worthwhile!
As Warden states, “True, owning a rental property rarely makes people rich quickly. But getting rich slowly is a very attractive alternative.”
What’s the first step? Doing the research on how to make a rental property purchase. Do reach out to me for more, as it would be my pleasure to help on the financing side.
Most baseball players spend the majority of their time working on their physical skills. But what about the mental side?
Today, I’d like to highlight Austin Byler’s Major League University – and an article that he’s written regarding “Building Mental Toughness on the Baseball Field”.
The Program – Major League University
“Major League University is a top-tier mindset and leadership training company. Our mission is to inspire student-athletes to become the best versions of themselves by training in three major areas: mindfulness, character, and personal development. We believe these pillars lead to sustainable success on and off the field.”
Austin Byler
MLU was founded in 2018 by Austin Byler and Kewby Meyer. Both had just wrapped up their careers in professional baseball where the daily physical and mental struggles, as well as anxiety, were commonplace.
They realized that they could help provide athletes with a healthy foundation for success in life…and MLU was born!
Their Leadership Academy is something that I would highly recommend for players. I know Austin personally and he is one of the most outgoing and positive guys that I’ve seen. His goal is to serve others, build relationships, and demonstrate his deep faith to those with whom he connects.
Building Mental Toughness on the Baseball Field
Next, I highly recommend that you check out this articlethat Austin penned regarding his friend Ray McIntire and his college experience:
Austin highlights Ray’s grit and determination, and dives into mental toughness with definitions and actions. There’s also a podcast with both Austin and Ray that’s totally worth the listen.
I’d highly recommend that you take a look!
Again, do check out Major League University – and pass this on to others in your baseball circle, as this is an extraordinary program.
All players spend plenty of time on the field working on their physical craft – hours of batting practice, fielding practice and bullpen work. But what about practicing the mental game? I think that’s something that’s not done enough.
I highly recommend the read for all players, as there are tons of examples of how big-league ballplayers use their mind to enhance their game.
Here are some other articles that I’ve written over the years that might come in handy:
Whether a borrower is making a home purchase or refinancing their current mortgage, choosing the right mortgage loan originator is critical to their success.
The right lender is a crucial part of the purchase process…but how do you know if the loan originator is an expert and understands your needs and financial situation?
In this article, we’ll go over several ways to identify how borrowers can identify a great home financing partner.
Purchasing a home is one of the most important transactions of our lives, so we need someone who can not only find a low interest rate, but understands the borrower’s financial situation and long-term goals. The terms of the mortgage are going to impact the borrower’s household finances for years to come, so it’s important to find the right fit!
The right loan originator will help determine the mortgage program and term, as well as walk the borrower through that lengthy process. Lenders should have experience in the local market and the type of transaction (primary residence, 2nd home, or investment property), as well.
Understanding the Local Market
It’s important that a borrower’s originator has knowledge of the community. They should be able to offer personalized expertise and information unique to the area buyers are considering.
The lender should also have a good report with the borrower’s real estate agent and other real estate professionals. This will give the buyer access to a resourceful network of inspectors, contractors, financial professionals, in their area.
With record-low mortgage rates and the increased demand for living space, coupled with the entrance of a large group of first-time home buyers, our market is expected to be tight for the foreseeable future.
Utilizing a local loan officer to help you navigate the home market, one who is focused on helping you make the best decisions for your financial situation and long-term goals, is crucial.
Access to a Variety of Mortgage Programs
There are always a number of factors that impact loan qualification – such as self-employment, student loan debt, and credit score, just to name a few.
There truly is no one-size-fits-all mortgage, and you buyers should consider working with a loan originator that has access to multiple loan programs.
With that in mind, it’s critical that borrowers work with a local loan officer with access to a multitude of home loan programs that fit’s their scenario. There are many types of loans out there, and it’s the lender’s responsibility to recommend the right product for the borrower’s needs.
A Trustworthy Lender
The borrower’s relationship with their loan officer shouldn’t end at closing. A reputable lender should be concerned with your overall purchase experience and ask for your feedback after the transaction.
The borrower should continue to rely on their lender as a resource for advice and expertise for all of their future real estate needs.
One way for a borrower to find out about the lender’s reputation is to check online reviews. Both positive and negative ones should be readily available with a simple online search. Check out Zillow or Social Survey to find out more about your chosen lender!
Long Term Perspective
Ultimately, the right originator should be a strong advocate and listener who will act in the borrower’s best interest throughout the process.
The right lender should ask many questions, be cooperative and willing to listen, plus really know the borrower’s financial situation and goals. Their communication must be top notch.
Purchasing a home might seem like a one-time thing, but that’s not the reality of purchasing real estate. The right loan originator will be a partner for the long-term and shouldn’t take a one-time transactional approach. It’s wiser to find a home financing partner for a lifetime.
It would be my pleasure to help any borrower for the long term! Please do reach out to me for more information or to discuss how I might be able to help.
Thomas Eugene Bonetto
Mortgage Loan Originator
NMLS: 1431961
About The Coach
Tom Bonetto has been helping his customers and players achieve their best for nearly 30 years. His goal is to provide both a superior customer experience and tremendous value for both his business associates and his players alike.
The views expressed are my own and do not necessarily reflect those of Starlight Mortgage.
