Your March Letter From My Heart

Good morning in the hopes of Spring rains,

Fears of the new strain of Corona-virus continue to drive the headlines. With this mind, there is some older data, offering helpful, though general, trend lines. From these, we can derive a sense of how our markets will likely respond, as fears of the Corona virus are overcome.

History says this virus will be handled. The unknown: The scope of itsimpactupon our economy, as the virus spreads. Is a recession possible? No one knows for sure, but the risk is less for the USA, than the rest of the world. The better question: Will current supply-chains shift and how this shift, may benefit our economy and our country. One should also note, falling interest rates. They should help overcome short-term fears and stimulate new growth in America. Even ourFed can lower rates or add money. Stay healthy – Don’t over-react. 

The Good News: We bring our special talents, well-tuned experience, and focused training to your success story, and your referrals. We focus onworking together – helpful and informative. 

Rates are even better. So prepare today, for a better tomorrow. Call today. 

Housing:Appreciation: Low supply + increasing demand = even more appreciation. Case-Shiller offers 3.8% year-over-year and FHFA says 5.2 %. Don’t miss out. Our entry level properties are tracking a 10 % year to date increase. Just not enough supply.

Current home owner?Fantastic! Let’s talk. Now maybe “that” good time you have been awaiting. Interest rates are great and with current market fears, this is a great window of opportunity. My suggestion – let’s talk now. Most rates are beginning with a 3. Does yours?

Still renting?With todays’ improved mortgage rates– let’s see how much more home your downpayment can buy. Let’s see why buying maybe better than renting. The old rules seldom apply today. Let’s discuss the ‘other side of the coin’ – home ownership – then you decide.

If you agree, we can begin to lay out the many differing strategies for buying a home, until we find the one best for you. We offer an excellent, step-by-step approach, so you feel confident you are making the best decision. Best of all: It’s free.And with our assistance, we can make buying your new home, a simple, straightforward process. 

Recession?

Is it time to wonder about recession? My opinion – No. 1) Short-term yields higher than 10 year. Bandied about, yet historically it has been the 2 year vs. the 10 year. Such rates are NOT inverted. Additionally, short-term rates are no longer market driven only. The short-term Fed influence on the market – pumping new money into the economy – makes yield curve analysis more suspect, Thus it is no longer the best marker to follow.

Spring Buying Season 

With improving rates and a strong economy, now is the best time to prepare for the fun of Springtime buying. Good News: We have working arrangements with the very best major lenders, in our marketplace. This includes Wells Fargo and Chase Banks – “a best source” Jumbo loan source, for well-qualified providers. We have remarkable, strong lenders who love to compete for your business – price, quality, and service. Let’s talk today.

We are ready today, toprovide you a strong loan, best in price and service. Call us today. 

Our real estate friends suggest this can be the difference maker. Let’s talk. 

Is this your Time to Buy or Refinance? 

We willshow you how and why, now is the time to make this dream happen.

– Call Mike – 

Helpful News:Facts are the best counter to “fake fears” about a recession. It overcomes misguided distortions and brings a helpful reality to what matters to you. 

  • Economy:Still adding jobs, low un-employment claims and layoffs.
  • Monetary policy influence:Recent drops in the stock market reminds us that the world invests through American stocks. Fears in China, the Mid-East, and Europe will effect our markets, as the world needs money, in fears of slowing economies. We will have to watch to see how the worldwide “Fed’s” respond and wait for science to gain a better scope of this latest virus fear. We will be here, for you. Preparation – not panic.
  • Trade talks:Worldwide trade talks continue. Let’s remain watchful of actual outcomes. Good News: the world is waking up that China is not a third-world economy. It is time for China to step up and become a peace-minded, open country. 
  • Trade:Past inflation numbers may not be helpful near term. The impact on pricing due to corona-virus is yet known. Cass Freight index shows thelargest drop in shipments, yet we need numbers regards corona-virus. Decreased shipments will eventually effect stocks. At the same time, US companies continue to grow, with increasing revenue and profits. Next month, we should know more. My interest: Will Real Estate benefit?

WE ARE MORE THAN HOME LOANS

1) We provide loans for Small Business and Commercial. 2) Even more, we offer specialized tax-advantaged alternatives, when selling highly appreciated real estate. We are proud to say: Don’t pay Capital Gains taxes now, unless you want to deplete your cash. 3) And, We provide strategies to stay in your home longer, only one solution being the Reverse Mortgage.

Call today and let’s prepare for your tomorrow – Now.

The Good, the Bad, n the Ugly

The Good: Global Economy

Fears or facts regardingcorona-virus seems key. Typically the pendulum of fear swings to far, and then markets play catch up, on lost opportunities. I trust our overall economy and that our medical sciences give indication of a summer reprise, regards the virus. 

The Bad: Political games are on

California politicians playing dangerous games, that are childish and arrogant in perspective: Attempting to take down Proposition 13, first on the commercial side. Trying to regulate the self-employed independent contractor, thinking it to be a new revenue source for their over-spending. So wrong. Their’s an acceleration of people leaving the State and restaurants closing. Think about the net loss revenues for a nickels worth of “new” tax money. Be wary! 

The Ugly: Political Will

The Ugliness of elections whereby the political elites think voters can simply be bought and or persuaded through waves of expensive TV commercials. That’s Ugly – the assumption by Politicians and Major Source Media, that we don’t get it and we don’t care. Vote wisely. Show them California voters are educated, aware, and should not be taken for granted. Issues matter. 

Springtime Buying 

Normal or a Spring Season Surprise ?

Headlines speak of affordability. Yet mortgage rates are historically very low and most attractive! And if one understands that a 3 % increase in one’s wage, will translate into a 6 % increase in buying power (in the Bay area) one will not be distracted by purposed headlines.

In the alternative, is my gauge – Live-ability Standard. This is the crux of my conversations with my Buying clients. It is critical to your buying options and possible financing strategies. I incorporate – income, expenses, and life-style – to aid in supporting and guiding your buying.

If you, your friends, or co-workers are looking to buy or refinance? Give us a call. We are ready to help. And, well-prepared to discuss your options and opportunities. To see the benefit of having a highly qualified and experienced loan officer working with you. We love to put each of our client’s success first – today and tomorrow. And more, we stand with you, until the sale or refinance is completed and all questions answered. 

And, there are many who are ready to ‘take the chips off of the table’. In the past there were few options to do so, and minimize the tax liability on the appreciation. We have Many more tools at our disposal today. Call, let’s begin the conversation and see what works best for you. Capital Gain tax deferral and avoidance strategies, are a phone call away. 

Closing Thoughts: 

We are the financing arm to help leverage your strengths with assets andaccumulate long-term wealth. We offer needed information – perspective and plausible financial solutions– with strong lenders ready to say “Yes”. Give us a call. If you are interested in this kind of outcome, let’s start building your future, today.

Thank you and continued blessings. 

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