I was looking at the number of homes for sale around the Logan, Utah this moning and was surprised to see how many of them were built in 2007. Some of the area like Logan and Smithfield aren't bad, but in Nibley, Wellsville, and Hyde Park over half of the homes are new builds. I don't think this can be sustained. If builders don't slow down the number of spec. homes they are building some of them are going to belly up. Cache Valley is growing, but not this fast.

If you are looking to buy a new home in Cache Valley now is a great time.

Information as of Nov. 12, 2007

Active U/C Sold in last 90 days Active built in 2007 % of Active homes built in 2007

Logan 167 45 144 28 16.77%

Providence 62 9 23 15 24.19%

N. Logan 38 6 17 14 36.84%

Smithfield 45 17 23 7 15.56%

Hyrum 36 11 18 6 16.67%

Hyde Park 39 4 9 20 51.28%

Nibley 54 6 15 31 57.41%

Wellsville 26 4 9 17 65.38%

Others 79 16 44 11 13.92%

Cache Co. 546 118 302 149 27.29%

I don't know how this compares to other parts of the county, but I was very surpised.

•5. Not carefully evaluating whether a fixed or adjustable-rate is the best mortgage loan structure for you.

Adjustable Rate Mortgages vs. Fixed-Rate Mortgages.

Which is better?

We just talked about getting "canned" advice when it's "best" for you to refinance your mortgage. Well, these same people will try to give you general "rules of thumb" about which kind of mortgage structure you should elect too. Once again, your decision should be made based on sound financial calculations that are tailored to your specific needs! If you just pick out the advertisement that sounds good, and choose the wrong type of loan, you may end up either paying too much now, or paying too much later.

Picking a lower adjustable rate might sound great now, but come back to haunt you in a few years time. It is extremely important for you to understand the terms and fine print that are contained in adjustable-rate mortgages.

MAKE SURE YOU UNDERSTAND THE FINE PRINT BEFORE YOU SIGN ON THE DOTTED LINE!

It's extremely important to know IF and WHEN you can "float" and "lock-in" the rates on your fixed or adjustable-rate mortgage during your financing process.

No one on this planet can predict what interest rates will do. But it's important to understand the fine print of your mortgage so you have the best advantage to lock-in your mortgage at the lowest rate possible!

Some bankers and mortgage brokers may not be happy to hear me tell you these things. But you need to know them so you don't get unpleasantly surprised or pay too much when you finance your home

•2. Not accurately determining whether you should elect a 15 or 30 year loan... or some other financing schedule.

This question is probably one of the most common ones asked.

Over and over again, people choose the length of their loan for all the wrong reasons. They choose the length of the mortgage based on the monthly payment, or being able to qualify for the mortgage, or whatever.

Sometimes, it's because of an emotional decision.

"I want to pay this debt off!"

"I want it free and clear, as soon as possible!"

Ever heard that one before?

But, what's any of that got to do with the real question, which is:

WHAT WILL BE LEAST EXPENSIVE FOR YOU IN THE SHORT... AND LONG RUN???

That's what you want - right?

Don't you want the loan to cost you the least?

Sure... but it's important to know how to make the right choices and calculations so that you DO pay the least amount possible!

Let's look at an example:

You would be amazed at how much interest you pay on your mortgage over the life of the loan. For example, over a 30-year loan of $100,000 at 9%, will cost you a monthly payment of about $804. Sound okay doesn't it? But when you read the fine print, over the term of the loan you will pay over $189,000 in interest! Wow!

That's unbelievable, but true. Let's take a look at some other options.

If you were to set up a prepayment fund, and add only $67 a month to it, and have it forwarded directly to your mortgage company every two weeks - you would save over $61,000 in interest over the life of your loan, and pay off your house in just under 22 years!

If you kept paying the normal $804 per month on that loan, you would owe over $55,000 at the end of year 22. (You would also still have 8 years left to go on your mortgage.)

By setting up this simple prepayment program, you would owe ZERO at the end of year 22!

What a difference huh?!

DO YOU THINK YOUR BANKER IS GOING TO VOLUNTEER THAT OPTION TO YOU?

It DOES make a difference who you select to handle this for you, but it definitely makes financial sense to do it. Now then... let me ask you something.

Do you think your bank wants you to know about any of this, and lose that extra $61,000 of interest you will pay? I don't think so.

Remember, they make their money by charging you lots of interest!

Don't let anyone tell you otherwise.

The potential interest savings are substantial, with virtually any size mortgage!

This simple pre-payment strategy alone can make an incredible difference in your life-style. Would you like to save significant dollars of interest? Do you think you would be able to figure out what to do with it? Are you going to be really upset that the poor old bank didn't get your money? (I sure hope not!)

So, as you can see, coming up with the right calculations and choices can make a big difference in literally thousands of dollars of savings to you.

The "right" and best financial answer for you is based on the simple goal of whether or not you can put more money in YOUR pocket by doing something else.

Your pocket.

NOT the bank's pocket!

What's most important is to understand how to make the right choices and calculations that are in YOUR best financial advantage.