Porch Pirates Foiled by NASA Engineer

We’re all in the housing business.  There is a current phenomenon affecting people that have packages delivered to their front doors.  YouTube sensation, Mark Rober, a NASA engineer that helped put the rover on Mars, was plagued by “porch pirates” stealing packages off his front door.  Here’s how he got his revenge – this is classic! CLICK HERE

The Easterbrook Team is Your Local Lender!

Women are Snatching Them Up in Record Numbers!

They say statistics don’t lie.  The stats are in:  

·         More single women buy homes than single men.  According to the NAR 2018 Home Buyer and Seller Generational Trends, 18% of recent home buyers were single females while only 7% were single males.

o   Women are entering marriage later in life – age 27 now, compared to 21.5 years in 1940.

o   In 1940, only 3.8% of women graduated college, compared to 30.2% now with a bachelor’s degree or higher.

o   Women professionals are on the rise – civil engineers increased by 977%, pharmacists by 434%, surgeons by 334%, and lawyers and judges by 681%.

o   According to the CSA retail site, women are quite influential. Women influence 91% of all home sales. The influence 85% of all purchases.

·         From Panel Study of Income Dynamics, having wealthy parents increases a young adult’s likelihood of owning a home by 8 percentage points. The study also found that a 10% increase in parental wealth increases a young adult’s likelihood of owning a home by 0.15 to 0.20%. If two sets of parents are identical in everything else, but wealth, and one set has $260K in wealth and another has $200K, the child of the wealthier family will have a 5-6% greater chance of owning a home than the child of the less wealthy family.  This is a strong reminder that our clients that have bought homes with children are likely to encourage their family members to buy.   

Speaking of successful women, Oprah Winfrey is worth approximately $2B.  For those looking to the New Year and change, she shares an inspirational thought on moving your life forward on her website: CLICK HERE.

The Easterbrook Team

The Upper Crust is Rising

High Net Worth Individuals (HNWI) grew last year, globally, by 13%.  Their wealth grew 16% to $31.5 Trillion. In a recently released white paper report by Luxury Portfolio International, 38% surveyed HNWI plan to purchase in the next three years. Only 23%, however, plan on selling.  Some highlights of the white paper are:

·         Purchasing a home ranks as the most obvious indicator of success worldwide.

·         Real estate is seen as a smart financial investment and driver of personal wealth.

·         HNWI’s are more likely to say the “physical space” is the most important factor in the buying decision.

If you’d like to get a copy of the white paper from LPI, CLICK HERE.

Houston, We Have a Problem

Improvenet did a survey of 2,500 people in major cities throughout the US.  The survey asked about how people felt about their neighbors.  They found 36 common annoyances and loud music topped the list.  Loud adult voices were a close second.  The top 5 cities were all in southern hot climates (sorry Houston and LA).  For the breakdown of the most annoying cities, CLICK HERE.

How would you even disclose a neighbor that was a major pain?  “Seller reports calling the cops on Mr. Neighbor for his loud parties on 4 different occasions”.  Or how would you let prospective buyers know about #8 on the list – General Grumpiness?

The good news is that Sacramento, El Dorado, and Placer Counties didn’t even make the list.  We may not be LA or New York, but we do have a pretty chill place to live. 

All You Can Do Is Laugh

Did She Trump Herself?

We start with the Carmichael, CA, woman that gave her real estate agent specific instructions inform all buyers that she would absolutely NOT sell her house to a Trump supporter. Talk about a seller from left field.  In the end, she had to switch agents and reduce her price by $130,000 before she could get a suitable buyer.  We would have loved to take a peek at the TDS on that one… CLICK HERE . The Donald was not available for comment.

Real Estate Follies

Sometimes even the most important investment vehicle to our economy and the very shelter that we live in can be MESSED UP!   Bias, mixed messages, market bellwethers pointing in all directions – sometimes all you can do is laugh.

Realtor.com Covers All Bases on Market Prediction

Realtor.com features BOTH of these articles sharing its front page.  Wait, what?  The optimist says the glass is half full. The pessimist says the glass is half empty. The project manager says the glass is twice as big as it needs to be. The realist says the glass contains half the required amount of liquid for it to overflow.  The rest of us, well, the best we can do is to stay hydrated and try not to perspire.

Mortgage Rates Tick Down More Home Buyers Choose to Wait It Out

Interest rates for home loans decreased as trade tensions kept investors flocking to bonds, even as more would-be home buyers begin giving up.

Mortgage Rates Climb as Housing Market Loses Its Mojo

Rates for home loans surged along with the broader fixed-income market, pressuring mortgage affordability again even as housing market growth falters.

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Did you hear about the guy that traded a paper clip up to buy a house?  Or perhaps that Warren Buffet, one of the richest men in the USA, still lives in the house that he bought for $31,500?  More amazing facts about our favorite topic – REAL ESTATE- can be found by CLICKING HERE.

Want to Earn More Than the Average Agent ($39,800)?

Many Realtors go into the business underfunded. According the National Association of Realtors, the average real estate agent spent $820 on promotional expenses, $750 on technology products and services, and $1,930 on vehicle expenses in 2017.  The NAR advises that before embarking on your career, make sure you set aside enough money to pay for the basics.    Here is the rest of their advice.

1. Focus on your current sphere of influence.  Many agents spend too much time and money casting a big net.  By marketing to people that already know you, you overcome the trust and familiarity factors.  Starting a geographic farm is not a bad way to go once you've established yourself, but it's always best and more economical to tab the resources that you've already acquired.

2. Don't put too much energy into something that isn't working.  Many agents, early in their career, try a lot of different things to get their business off the ground.  Hiring a business coach to help you focus on productive activities is usually money well spent.  It also helps to have a system to help track your business activities.  Programs such as Top Producer and Boomtown have been a great help to help agents contain costs and focus on what works.

3. Start delegating business as soon as possible.  New agents may feel like they have to handle all their business tasks themselves until they become more established to avoid the expense of hiring help. But bringing on an assistant could help you focus more on income-generating activities and boost your business faster.  Hiring a virtual assistant is a great first step.  Small tasks, such as maintaining a database, processing new listings, managing paperwork, and sending marking mailings to all be done virtually.

4. Shift your role to what consumers want.  Nobody wants to be sold, but everyone likes to buy.  Shift your job title from sales to customer service.  A recent poll of consumers purchasing homes said that 72% of the respondents wanted someone that is helpful.  Be that helpful agent that helps buyers and sellers get what they want and you are on the road to success. 

5. Team up with helpful partners.  Just like consumers are seeking out help Realtors, Realtors should seek out helpful partners to make the buying and selling experience a memorable one.  Always have one of two excellent title people, lenders, and pest control pros to make your job easier and make you shine.  On the Easterbrook Team, we a purchase specialists and we truly mean it when we say that "We Make the Loan Process Easy".    

"If it Bothers People, Then It's Working"

The national debt clock tracks the U.S. debt, which topped $21 trillion on March 15, 2018. The clock is physically located at One Bryant Park, west of Sixth Avenue between 42nd and 43rd Streets in New York.  Real estate investor Seymour Durst created the debt clock on February 20, 1989. He first put it up at Sixth Avenue and 42nd Street. That's when the national debt was nearing $2.7 trillion and 50 percent of gross domestic product. Durst said, “If it bothers people, then it's working.”

Why the clock is important to real estate and mortgage is that as our debt increases and the dollar is devalued, foreign interest in our Treasury bonds will diminish.  Interest rates are based on bond pricing.   The rate of return must be increased on bonds that diminish in value as the debt increases and foreign and domestic investment in our bonds decreases.  This raises rates.

How do we fix the debt?  We'd like to hear your thoughts. 

Plug Into the Power!

The Easterbrook Team –Plug Into the Power!

When you want speed and efficiency, you go to the source.  The nationwide hub for Sierra Pacific Mortgage is based in Folsom.  SPMC is a direct lender and one of the top 25 lenders in the USA!   From processing to underwriting to document drawing and funding, SPMC is fast and responsive. 

It is no coincidence that the Easterbrook Team is also based in Folsom.  As a nationwide direct lender, we can provide you with the personalized service you require and power you need to close your transactions fact.

The Easterbrook Team
916.850.6050 EasterbrookTeam@spmc.com

Love Thy Neighbor

Love Thy Neighbor

Realtors are the neighborhood hosts that introduce new homeowners to neighborhoods by profession.  One excellent piece of advice that they can provide their buyers to thrive in their new home is to be neighborly.

Neighborliness usually delivers big benefits. Here are three excellent reasons to get to know your neighbors.

1. Increased safety (good neighbors look out for each other)
2. Improved health (tight communities experience less heart disease and stress)
3. Appreciating home values (close-knit neighbors enjoy neater yards, lower crime rates and better schools)

Studies show improved health and educational outcomes for those living in mutually supportive neighborhoods.

The “Roseto Effect” was named after Roseto, Pennsylvania. That was the site of a half-century  study that explored the medical advantages of living in a supportive, closely-knit community. And it found such environments had a significantly lower incidence of heart disease and other stress-related illnesses. A good starting point toward neighborliness is to participate in an online community.  One such online site, Nextdoor, provided these findings:

·         93% of homeowners say it’s important to look out for each other.

·         67% of homeowners say that they feel safer when they know their neighbors.

·         35% of those that know their neighbors report that they have shared information about crime and safety with them.

·         79% of those that use an online community talk with their neighbors in person at least once a month.

Who would have thought that it would be in your best interest to go out of your way to say Hi?  Good luck with your community building.

The Easterbrook Team
916.850.6050
EasterbrookTeam@spmc.com
916.850.6050

3 Things to Look for in a Lender Partner

Subject Line:  3 Things To Look for in a Lender Partner

All top producing Realtors have a top-notch team surrounding them.  A good contractor, home inspector, and transaction coordinator are invaluable.  Few team members, however, are as important to keeping a transaction together as a good lender.   Here are 3 things to look for.

1.       Look for Expertise:  Look for a direct lender with direct lending capability and a loan officer with extensive experience.   The mortgage process has become very complex.  Knowing how to apply that knowledge to a large suite of products like FHA, VA, conventional, first time homebuyer programs, and move up products is critical to keeping your business running efficiently and keeping your buyers happy.   

2.       Look for In-House Capabilities:  A good in-house underwriting team can review loans within 24-48 hours.  Dedicated in-house loan processing is so important to keep the loan process flowing smoothly with a priority on YOUR loans.  That means you can reasonably expect a loan commitment in seven days or less.

3.       Look for an Array of Products: There are many federal, state, and local programs available that can put homeownership within reach. Make sure your buyers have access to all of them.  Make sure that your lender has the knowledge and confidence to use them. 

On the Easterbrook Team, we are constantly striving to “Make the Process Easy” for our borrowers and Realtor partners keeping up on all the newest loan products and working to process them with quickly and efficiently.  If you are looking for a lender, a second opinion, or just want some loan advice about a new listing you have, call the Easterbrook Team at (916) 850-6050.   

Rates are Still Historically Low!

Rates are Still Historically Low!

It’s easy to forget how good we still have it when rates on a 30 year fixed rate mortgage were in the low 3’s.  One of the most significant ways the Fed stimulates the economy is lower and raise rates based on a variety of factors, such as the unemployment rate (which is currently at record lows).  Since the US economy has had a good run lately, the Fed has started to steadily increase the rate at which lenders borrow money.  We pass the cost on to the borrower in the form of higher interest rates.

As 30 year fixed rates climb back into the 5’s however, ARMs will be a tool that many buyers will consider to lower their monthly payments.  Call the Easterbrook Team for other options as well. 

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com

"We Make the Loan Process Easy!"

As Rates Rise, Is an Adjustable Rate Mortgage a Good Idea?

As Rates Rise, Is an Adjustable Rate Mortgage a Good Idea?

It’s pretty tempting – that that lower rate on the ARM in a rising interest rate market.  Is it a good idea?  That depends…read on.

An ARM starts with an initial period that has a fixed interest rate.  Different loan terms vary and the low rate can usually last from one year to ten years.  After the introductory period expires, the interest rate moves up and down with another interest rate called the index.  Most ARMs have one of three major indexes: one year treasury yield, COFI, or LIBOR.  ARMS also have limits, or caps, that restrict the amount rates and payments can change.

 

 

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com

"We Make the Loan Process Easy!"

Down Payment Hurdles

Down Payment Hurdles

Home ownership percentage has dropped to its lowest rate since 1965. Rates are decent, there's an incredibly strong job market, but renters continue to struggle coming up with a down payment. Rents have gone faster than any other component of the Consumer Price Index, which hasn't helped, student debt payments impact many, and other bills add up. Interestingly, in areas around the nation, a mortgage payment is less expensive than a rent payment. There's general agreement that potential buyers are more than capable of affording a monthly mortgage payment but saving for the down payment is a problem.

EASTERBROOK TEAM gives your buyers a leg up: John and Patty are down payment coaches.  We can assist your buyers with a wide variety of programs to assist them, such as: conventional HomeReady and Home Possible, CalHFA MyHome, ZIP, grant, and more.  We can investigate funds that buyers didn’t even know they had available to them, such as 401K borrowing, gift, and asset conversion.  Get them in front of us and we’ll get them excited about jumping over their home ownership hurdles!  

401K Today

Driving Your Retirement Vehicle Home

A 401K should be on the radar of any W-2 employee that wants to have a comfortable retirement.  A 401K builds and earns interest tax free for retirement years.  Taxes are paid on withdrawals in retirement years when income and taxes are lower.  But a 401K has some other benefits that many people are not aware of.

Having a nest egg is like having a safety net.  Most 401K plans allow for a hardship withdrawal before 59 and a half.  With the security of knowing that there is money set aside in case of emergency, there is less fear in asking for a raise or taking a chance on a good opportunity that presents itself. 

The number one hidden benefit to having a 401K is that it can be borrowed against.  The 401K is still earning interest when borrowed against.  Most plans allow the interest paid to go back into the retirement account – which actually benefits the retirement account.  For more information about borrowing against a 401K, CLICK HERE.

The average 401K balance is just under $100K.  Most 401K plans will allow a loan of up to $50K or 50% of the vested balance – whichever is less.  The loan does not affect credit, nor is it taxable.  From a lending standpoint, the payments on the loan do not count against a borrower’s debt to income ratio. 

Borrowing against a 401K can often be the difference between home ownership and renting.  A larger down payment using a 401K loan could also be the difference between paying a higher rate of interest or higher mortgage insurance rate on a home. Considering the rate at which housing increases, borrowers can leverage and maximize the benefits of their retirement savings to live the American Dream of home ownership.  Call the Easterbrook Team today for more information.

Can't Make This Up!

More housing news from Zimbabwe.  Dr. Smelly Dube won three awards for her achievements in housing development, which is cool.  "A rose by any other name would smell as sweet".   The article then took another fast turn like a comedian switching topics - According to the Zimbabwe Association for Housing Finance “providing proof of incomes from informal business activities continued to be problematic for increasingly cautious lending institutions.”  Sounds like 2006 all over again.  Here's the article: CLICK HERE.

At Any Rate

Useful Mortgage News…Mostly Fact: In January of 1985, 30 year fixed mortgage rates were more than 13 percent. By January of 2012, rates had dipped to under 4 percent. What’s happing right now with rates?  Even with slightly higher consumer borrowing rates, housing loans are still a bargain compared to past years and decades. Economist David Clark... "...certainly mortgage rates have gone up, but they're still in the neighborhood of 4 percent. By historical standards, that is low. If you look at 30-year fixed rate mortgage where it stood at the beginning of January, it was just under four percent at 3.95 percent. By February it had moved up to 4.38 percent..." Clark says by historical standards that rate is still low... "....it's because the Federal Reserve has started moving up short term interest rates. They have a federal funds rate that they set is at 1.5 percent now. It was at 0.75 percent this time last year. The reason they've done that is that they're concerned about inflation...." He says those Federal Reserve moves caused some sharp adjustments in the stock market. That also pushed up the long term rates. He says when lenders are providing 30 year loans they want to know what is happening with inflation. Clark says the moves by the Fed now are designed to keep inflation under control. Tip: Want to know where rates are on any given day?  Check the price of gas at your favorite intersection – there is a direct relationship between gas prices and inflation – CLICK HERE.  Or call us.  We’re always here to help…and put your business pedal to the metal!   Putin’s Interest Rate Woes Vladimir Putin proclaimed this week that Russia must get interest rates below 7% to solve the country’s housing problem.  We always thought that their housing problems were because half the country is living in poverty.  He solved that problem in the same speech – he ordered the minimum salaries to be increased.  But won’t artificially raising incomes cause inflation, thereby rising interest rates?  Maybe Putin can outlaw inflation in Russia too. Assets - How Much You Need to Buy a Home Think you need 20% of the purchase price to buy a home? Think again. This class will describe what an asset is and what is not acceptable for a home purchase. We also will discuss creative solutions for borrowers that are "asset challenged". We will provide handouts and be available for questions. Instructors will be John Easterbrook and Patty Aguon. John and Patty are seasoned Mortgage Loan Officers, experienced in all facets of the home loan financing. Sign up now. Thursday!  March 8th 6:00 PM - 7:00 PM 806 Bidwell St, Folsom, CA 95630, USA Sign Up Here!

A Presidential Recommendation

Franklin Delano Roosevelt, commonly known as FDR, was born January 30,1882.  He was an American statesman and political leader who served as the 32nd President of the United States from 1933 until his death in 1945.  He had brilliant quote about real estate that is as true back in the WWII era as it is today.  This quote captures the essence of real estate - smart and safe. 

 

Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world. - FDR

The Easterbrook Team 916.850.6050 EasterbrookTeam@spmc.com

We're Giving You Credit

The Easterbrook Team would like to see standing room only on February 8th at 806 Bidwell Street for our class on Credit Solutions.  We'd like you to go through your files and find at least one buyer that didn't qualify because of credit and send them to the class next Thursday. Agents are welcome too.  It's free and life changing!  We'll talk about how to get out of the credit mess that many of us find ourselves in and that many of us are better off than we think when it comes to credit. 

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com

www.HomeLoanWorkshop.org

Job Interview

 

For those of us in the mortgage and real estate business, it seems like every time that we meet a new buyer or go on a listing presentation, it feels like we're on a job interview - because we are!  We are being judged by prospects before they "hire" us to become their mortgage or real estate representative.  We can learn from those that do the hiring for the workplace to better attract and keep our future clients.  One of our favorite websites, Lifehack.com, has a great article on the 5 attributes that employers (prospects) are looking for in an employee (you) - CLICK HERE.

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com

www.HomeLoanWorkshop.org

Do You Have Unclaimed Monies?

Here is a Link Concerning the Vast Amounts of Unclaimed Money with the State of California.

Every year, we get an email from someone who took less than a minute to enter their name or name of relatives, friends, etc. They will tell us that they found some money for someone dear to them.

The link is simple.

UCPI.SCO.ca.gov.

Maybe some State Agency just found some money for you.

When you find the money, please take a moment to let us know. Then, we will keep giving the alert each year.

Good luck!   

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com