Second-Richest Man Says Mortgages Now a "No Brainer"

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Warren Buffett is the second-richest man in America today, behind Bill Gates. (He was the richest man in the world in 2008.)

He made his fortune through the financial markets. Buffett, to me, is the one of the greatest financial mind of our time – if not ever.

Right now, Mr. Buffett says to get a fixed mortgage… Specifically, he calls it a "no brainer." Mortgage rates have been falling again lately, and they're not far from all-time record lows.

"You would think that people would be lining up now to get mortgages to buy a home," he said at a Fortune magazine conference this week.

Buffett has been surprised about the speed of housing's recovery. He said it "has been slower than I anticipated." But he is not worried.

Buffett expects housing will recover, as it always does after recessions. He joked that inevitably "Hormones kick in, and in-laws get tiresome."

Buffett likes 30-year fixed mortgages best, calling them "incredibly attractive."

Here's why…

He says that if interest rates go up after you get your mortgage, you win – because you're locked in for 30 years at a great rate. And if interest rates go down, you win as well – because you can easily refinance at a lower rate.

If you have a long-term view that the dollar is going to weaken eventually, and that interest rates will rise eventually, then, according to Buffett, you really want to get that 30-year fixed-rate mortgage…

"It's a good way to go short the dollar, [and to] short interest rates. It's a no brainer," he says.

The greatest financial mind of our time says a 30-year mortgage today is a no brainer…

Are you going to listen to him?

Mortgage rates are near-record lows relative to history. And house prices are still affordable.

I suggest you take the advice of America's second-richest man… and (if it makes sense for you at all) consider getting yourself a fixed mortgage of some sort, right now!

Ken
951-760-3833

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You'll Believe This But No One Else Will ...

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If you've been working on your bank in an effort to get your loan modified you'll believe this story I'm about to share with you. If you have no experience dealing with banks "negotiators" whose sole purpose is to drive you crazy and make you go away then you might not believe me.

I recently had a client who was told by his lender that he would not qualify for a loan modification unless he became 60 days late.  Up to that point he'd never missed a payment and in all likelihood could have continued doing so even though it was a mighty struggle and the property was worth less than he owed. He nervously followed their advice in order to qualify for the loan modification.

After skipping his second mortgage payment he called his lender and was shocked to have the new negotiator assigned to his file promptly inform him that he would still not qualify for a loan modification because of his debt-to-income ratios.

Luckily for my client, he had consulted with me before starting the whole process and took my advice about taking copious, detailed notes about everything he was told on every phone conversation he had with his 'Negotiator.' After detailing all the conversations he'd had with the original negotiator for 30 minutes she finally agreed that he was in fact qualified and then actually whispered into the phone, "they make me say all that stuff."

Can you believe that?!  If you haven't figured it out yet, believe me when I say, the Wall Street power brokers who control the lending industry are corrupt.  Absolute scumbags.

Unfortunately, the new terms they offered (after 2 years of trying!) did nothing to fix his long term problem of being more than $75k upside down on the property.  

If you or anybody you know is in a similar situation, please don't keep me a secret! I can help.

Regards,
Ken Hall
Allison James Estates & Homes
43015 Blackdeer Loop
Suite 104
Temecula, CA 92590
951-760-3833
KenAHall@gmail.com
www.KenHallProperties.com

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Being Able to Fully Trust Your Agent is the Most Important Thing

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While many home sellers will list with an agent they know personally from their place of worship, health club or other association, things don't always work out so well. It's important to work with someone you trust and feel good about, but if it's a relationship you value or someone you'll have to continue to see even if things don't go so smoothly than it might make sense to interview others.

I'd love to interview for the position of "selling agent" should you decide to put your home on the market.

Ken
951-760-3833

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Bankrupt Lender ... No More Mortgage Payments? ...

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One of the questions I'm asked often is, "What happens if the lender I got my mortgage from goes out of business?"

That is a great question! I think a lot of people are concerned that they'll somehow lose their home, or that the bank will ask for the loan to be paid back immediately. Well, neither of those things can happen.

Your debt is a valuable asset of the bankrupt lender and it will be sold and transferred to another lender. So all it means is that the firm receiving your payment will change.

You see the firm that receives your payment is called the loan servicer, and they may or may not own the actual mortgage itself. Most loans today are serviced by specialized servicing companies who don't own the loans but collect a fee from the owner to process all the payments and other paperwork, like collecting escrows.

Transfers of servicing occur quite a bit, occasionally because the servicing firm goes bankrupt, but more commonly because the servicing contracts get sold.

When a lender buys your mortgage they assume all the terms and conditions of your original loan. By law they cannot change anything other than where you mail the payment.

If you ever have questions and you want honest answers, don't hesitate to give me a call.

Thanks for not keeping me a secret!  I look forward to talking with you soon!


Sincerely,

Ken
951-760-3833

CA DRE License #01418440 
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How to Hack Your Electric Bill

Here's how to drastically hack your electric bill.  This is really great information.  It's a large image and doesn't paste very well into this blog's format but just email me and I'll send it to you as a more readable attachment.

KenAHall@gmail.com

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Sellers: Protect yourself and your home

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Never allow random house-hunters into your home unescorted. A serious buyer will be working with a real estate professional or should be willing to contact your agent to schedule an appointment.

Also, always lock your valuables away before an open house - the agent onsite will be monitoring traffic, but it's impossible to be everywhere at all times.

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Important Questions to Ask Yourself About Your Prospective Real Estate Agent

• Is the agent a good listener?
• Is the agent accessible?
• Is the agent part-time or full-time?
• Is the agent cooperative and enthusiastic, or rude and arrogant?
• Do you think you can have a good working relationship with the agent? 

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