What’s the longest time period you have ever lived in a home? Consider Jane and John Doe who are buying a new house with a $200,000 mortgage. In this example: The expected ownership period is seven years The interest rate / APR on a 30-year fixed-rate loan is 4.5 percent The interest rate / APR … Read more
Last month I had a great new client meeting. I asked this couple, who were first-time home buyers, young professionals, and in a really good place financially for someone in their late twenties: “When you purchase this house, have you decided what you will do with the extra cash you’ll be saving each month?” The … Read more
The Financial Industry Regulatory Authority (FINRA) regulates broker-dealers and their registered representatives. Over 10 years ago, FINRA issued a few investor alerts and notices regarding the use of mortgage funds for investment purposes. Here are the direct links: http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p012714.pdf http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/MarginAndBorrowing/p005961 As you can tell by reading the notices, FINRA does not prohibit broker-dealers or their … Read more
The previous year was tough on all of us, but let’s hope those tough times stay away! Those times provided many challenges to us and our families and many people were hit with financial challenges that impacted them in new ways. On the other hand, the stock market performed incredibly well and the savings rate … Read more
