I’m linking to a great article from COR (a California based physical therapy firm) that outlines specific, baseball related strengthening and flexibility exercises.
Baseball is unique in that many typical weight training exercises can be counterproductive, as players really need to stay flexible, but strong at the same time.
Doing bodybuilding type work can actually be detrimental, as
you can’t play baseball effectively if you are muscle bound!
Many of these exercises shown in the COR sequence are similar to what Jordan Zimmerman uses with his ZB Velocity and Strengthening program – and you can find our more on that here…
Here’s their concept:
Let’s explore what
makes great exercises for baseball players. You need to know which exercises
are blunders so you can pick the best for your performance and your body. Great
exercises for baseball players do the following:
Train the entire body
Improve explosive power
Strengthen and protect the shoulder
Improve mobility of the thoracic spine
Improve ankle, trunk, and shoulder mobility
What exercises should
not be are painful. Don’t shy away from soreness, but don’t fall victim to the
ridiculous myth – “no pain, no gain.”
Baseball players need to focus on balance, explosive power, agility, and rotational power. Strength-training helps baseball players achieve these results, but only if the exercises are done properly and with the mechanics of the game in mind.
What baseball players need to avoid are exercises that exhaust only certain muscles, such as muscles in the shoulder. Doing so causes significant imbalances and leads to injury instead of success on the field. Baseball is a full-body sport, so the greatest exercises for baseball players must address all the muscles, not just a select few.
I highly recommend that you go through this link and take a look at the exercises and make them part of your routine.
It does look
like most economists are pointing to a recession (although most do think it
will be relatively mild by historical standards) in the next 12 months.
A recession
occurs when there are two or more consecutive quarters of negative economic
growth, meaning GDP growth contracts during a recession.
When an economy is facing recession, business sales and revenues decrease, which cause businesses to stop expanding.
How do the
economists know this? And what does this
mean for interest rates and real estate values?
Read on for more…
Recessionary Indicators
The Yield Curve
One of the major
indicators for an upcoming recession is the spread between the 10-year US
treasury yield and the 2-year US treasury yield.
While
various economic or market commentators may focus on different parts of the
yield curve, any inversion of the yield curve tells the story – an expectation
of weaker growth in the future.
What does
this inverted yield curve look like?
Here’s a good depiction:
Why does
inversion matter? Well, the yield curve inversion is a classic signal of
a looming recession.
The U.S.
curve has inverted before each recession in the past 50 years. It offered a
false signal just once in that time.
When
short-term yields climb above longer-dated ones, it signals short-term
borrowing costs are more expensive than longer-term loan costs.
Under these circumstances, companies often find it more expensive to fund their operations, and executives tend to temper or shelve investments.
Consumer borrowing costs also rise and consumer spending, which accounts for more than two-thirds of U.S. economic activity, slows.
Unemployment
Unemployment
is a recessionary factor, too – as economic growth slows, companies generate
less revenue and lay off workers to cut costs.
A rapid
increase in the overall unemployment levels—even if relatively small—has been
an accurate indication that a recession is underway.
Here’s a
chart that shows what happens when unemployment starts to trend upward – and
notice that recessions follow shortly thereafter:
As you can
see, when things in the economy starts to slow down, one of the first things
business do is to reduce their labor force.
The curve is flatting now, and unemployment might be ticking up soon.
Mortgage Rates During Recession
When a
recession hits, the Federal Reserve prefers rates to be low. The prevailing
logic is low-interest rates encourage borrowing and spending, which stimulates
the economy.
During a
recession, the demand for credit actually declines, so the price of credit
falls to entice borrowing activity.
Here’s a
quick snapshot of what mortgage rates have done during recessionary periods:
Obtaining a mortgage during a recession might actually be a good opportunity. As mentioned, when the economy is sluggish, interest rates tend to drop.
Refinancing
or purchasing a new home could be a great way to get in at the bottom of the
market and make a healthy profit down the road. A borrower should be market-
and financially savvy when considering large real estate purchases in a
recession
Real Estate During Recession
Believe it
or not, outside of the “great recession” of 2007 (which was caused, in part, to
a housing crisis), home values and real estate actually appreciate historically
during times of recession.
That seems counter intuitive…but because interest rates generally drop during recessionary periods, homes become MORE affordable to potential buyers (even though property values are higher), due to the lower payments provided by those lower rates.
When more
people can qualify for homes, the demand for housing increases – and so do home
prices.
In Closing
Although no one likes to see recession, you can observe that it actually can be beneficial for homeowners and would-be purchasers to refinance or purchase during these periods.
If you have more questions and or would like to strategize about purchasing or refinancing, don’t hesitate to contact me, as it would be my pleasure to help you!
When you need cash for home improvements,
school tuition, a down payment for a 2nd home, or debt
consolidation, you might want to consider tapping into what could be your
greatest source of wealth — your home equity.
Interestingly, there is more than one way to access your home equity – so it’s smart to compare available options to find the right fit.
Two of the most popular ways are a home equity line of credit (HELOC) and a cash-out refinance. Both of these loans can work if you want to access your home equity, but they do work rather differently.
The “Cash-Out” Refinance
Cash-out refinancing involves replacing your current home
loan with a new one. The “cashing out” part of the equation means you
essentially take out a larger home loan than you currently have so you can
receive the difference as a lump sum. This strategy works for those who have
equity in their homes due to paying down their mortgage balances or
appreciation of their property.
To qualify for a cash-out
refinance, you need to meet similar requirements as you would if you were
applying for a first mortgage – and you must have the equity in your home to
qualify, as well. You can borrow up to
80% of your home’s value.
So, let’s assume your home has a
value of $300,000 and you want to take cash out. In that case, you could only
borrow up to $240,000 through a cash-out refinance. If you owe that much or
more on your home already, you wouldn’t qualify.
The Home Equity Line of Credit (HELOC)
While a cash-out refinance
requires you to replace your current mortgage with a new one, a HELOC lets you
keep your first mortgage exactly how it is.
Acting as a second mortgage, a
HELOC lets you borrow against your home equity via a line of credit. This
strategy allows you to withdraw the money you want when you want it, then repay
only the amounts you borrow.
You now have two mortgage payments to make each month – your first mortgage payment and the new HELOC.
To qualify for a HELOC, you need
to have equity in your home. Depending on your creditworthiness and how much
debt you have, you may be able to borrow up to 85% of the appraised value of
your home after you subtract the balance of your first mortgage.
For example, let’s say your home
is worth $300,000 and the balance on your mortgage is currently $200,000. A
HELOC could make it possible for you to borrow up to $255,000, because you
would still retain 85% equity after accounting for your first mortgage and your
HELOC.
Generally speaking, HELOCs work a
lot like a credit card. You typically have a “draw period” during which you can
take out money to use for any purpose. Once that period ends, you may have the
option to repay the loan amount over a specific amount of time or you might be
required to repay the balance in full.
Like credit cards, HELOCs also
tend to come with variable interest rates, so you should be prepared for some
rate volatility.
Key Differentiators
Before you decide between a
HELOC or a cash-out refinance, it helps to do some analysis on your personal
finances and your overall goals.
A cash-out refinance may work better if:
Your current home loan has a higher rate than you could qualify for now, so refinancing could help you save on interest
You need more than $50,000 overall
You prefer the stability of a fixed monthly payment or only want to make one mortgage payment every month
You have high-interest debts and want to consolidate them at the same rate as your new mortgage
What you save by refinancing — such as savings from a lower interest rate — outweighs the fees that come with refinancing
You are able to roll your closing costs/fees into the new loan amount so there are no out-of-pocket costs
A HELOC may work better if:
You are happy with your first mortgage and don’t want to trade it for a new loan
You need less than $50,000 overall
Your first mortgage has a lower interest rate than you can qualify for with today’s rates
You aren’t sure how much money you need, so you prefer the flexibility of having a line of credit you can borrow against
You want to be able to borrow up to 85% of your home’s value versus the 80% you can borrow with a cash-out refinance
Here’s a quick “snapshot” of two
different options – notice how the smaller transaction works well with the
HELOC, the larger one with the refinance.
As you can see, for the smaller transaction, the HELOC is less expensive overall – both in fees and monthly payment. However, once you go over the $50,000 mark in cash-back, it appears that the cash-out refinance is the most economical, all things considered.
Applying for a HELOC allows you to maintain the terms of your original mortgage, which can be an advantage if your rate is low.
You can use money from a HELOC for anything you want, and you only have to repay amounts you borrow.
HELOCs tend to come with lower closing costs than traditional mortgages and home equity loans.
HELOCs can generally be closed quicker than refinances
Cons
Taking out a HELOC means you’ll need to make two housing payments every month — your first mortgage payment and your HELOC payment.
Interest on a HELOC is no longer tax-deductible, unless the funds are used for acquisition or updating your home.
They are more expensive the more you borrow – if you are needing more than $50,000, your payments might be higher than that of a refinance
Since you only repay what you borrow and the interest rate on HELOCs is typically variable, you may not be able to anticipate what your monthly payment will be. Your monthly payment could also be interest only at first, meaning your payment won’t go toward the principal or help pay down the balance of your loan.
The interest rate on HELOCs tends to be higher than first mortgages, and their variable rates can seem riskier. You may also be required to pay a balloon payment at the end of your loan, so make sure to read and understand the terms and conditions.
Refinance Pros and Cons
Pros
You can use the money from a cash-out refinance for anything you want, including home upgrades, college tuition, a vacation or debt consolidation.
If rates have gone down or your credit has improved since you took out your original home loan, you could refinance your mortgage into a new loan with a lower interest rate.
You can choose from different types of loans for your refinance, with various terms and fixed or variable rates available.
Interest on your first mortgage may be tax-deductible.
Interest rates on first mortgages tend to be lower than other options, such as home equity loans or HELOCs.
Cons
Closing costs for a cash-out refinance are typically higher than those of a HELOC
If interest rates have gone up since you purchased your home, you could be trading your mortgage for a higher interest loan that will be more expensive.
Refinancing your home to take cash out may leave you in mortgage debt longer.
You won’t qualify for a cash-out refinance unless you have at least 80% equity in your home after the process is complete.
In Conclusion
As you can see, there’s really no right or wrong decision to be made here, but it is important that you know the benefits and drawbacks of both options. Please do reach out to mefor more information, as I’d be happy to go over the specifics of your scenario to find the best option.
In today’s competitive real estate market, potential home-buyers need every advantage they can get.
One way to differentiate your offer from the myriad of others is a true “TBD underwritten” loan approval.
I’m not talking about the typical pre-qualification letter that is a cursory overview of a borrower’s ability to gain an approval, but a fully underwritten approval that is only waiting for a contract.
This process is for the home-buyer who wants a
solid, iron clad pre-approval that has been fully underwritten and signed off
by mortgage underwriters.
How does that work?
Well, it
works very similarly to a full-fledged underwrite – except the address is left
blank – or “TBD” (to be determined). The
underwriter analyzes the file as if it was a true loan – and provides the
actual loan conditions that the borrower must meet.
What’s the downside?
The only real
downside is time. This process could
take as long as a few weeks, because all documentation needs to be gathered
(tax returns, W2s, pay stubs, bank statements, etc.) and then analyzed by the
underwriter.
What’s the advantage?
There are a multitude of advantages. First and foremost, the borrower will know the exact size of the mortgage that they will be able to qualify for. They will have a very good idea of the monthly payment and be assured that the loan will go through.
Equally important, the offer you submit will essentially be like a cash offer. The real estate agent presenting the offer will share with the seller’s agent that the mortgage approval is actually confirmed – not pre-qualified. This will make your offer much more attractive to the sellers, as they don’t have to be concerned about mortgage approval.
Finally, the closing can take place more quickly than standard
financed transactions. Essentially all
that’s needed is an appraisal to confirm the value of the property. Instead of a 30 to 45 day close, these can be
done in less than 20!
In Conclusion
If you know that you will be purchasing a home in the near future,
ask your mortgage lender about a “TBD approval” to see if that’s an
option. If so, I highly recommend that
you go through the process early – and in that way you will be miles ahead of
your buying competition!
Please do reach out to me for more information, as I can absolutely help you with a “TBD” underwrite!
Self-employed mortgage applicants must prove stability of
employment and income, traditionally going back at least two years. This
regulation is a bit tougher than it is for regular salaried employees.
Traditionally, mortgage lenders have required two years federal
income tax returns in securing a mortgage for purchasing or refinancing real
estate.
Fortunately, there is a way to use just one year of tax returns to qualify for a mortgage.
This can help newer business owners, as well as those who experienced a down year in the past.
Introducing Two-X Flex 1-Year
Finance of America Mortgage has a new, proprietary product that drastically reduces the amount of documents and simplifies qualification.
Two-X Flex 1-year requires only one year of income documentation and offers borrowers more flexibility in qualifying for a mortgage.
Product Details
1-year of income documentation used for qualifying
Wage earner and self-employed borrowers
Up to 90% loan-to-value with no mortgage insurance
As low as 640 minimum FICO
$100,000 minimum loan amount
Up to $3,000,000 maximum loan amount
30 year fixed
5/1, 7/1 and 10/1 ARM –fully amortizing and interest only
Primary Residence, Second Homes, Investment Properties
Up to 50% debt-to-income ratio
1-2 units, PUD and warrantable condos
In order to utilize this one-year requirement, it’s important to
understand that your tax return must reflect a full year of
self-employment income.
For example, if you became self-employed in April 2017, that
year’s tax returns are not going to reflect a full year. If you
started your business in November 2016, then your 2018 tax returns will
demonstrate a full year of experience running your business.
Give me a call to find out more – as there are multiple alternatives that we can examine!
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.
