Ben Olson

NO MORE $15,000 TAX CREDIT!!

The House and the Senate agreed upon a compromise stimulus plan totaling $789 billion. One of the major spending cuts that will effect the real estate industry is the proposed $15,000 tax credit for home buyers. Instead, the current $7,500 tax credit for first-time homebuyers will be increased to $8,000. Another positive change is that the $8,000 no longer needs to be repaid!

Ben Olson - Minnesota Mortgage Specialist, Mortgages Unlimited, 763-416-2620

Perspective is everything in life, and considering where most of us in the Real Estate market have come from over the last 12-18 months, a little perspective is due. I've heard many clients and colleagues complaining recently about the "high" rates. Since when is 5.0%, or 4-point anything a "high" rate for home financing?!

The truth is, there is an argument for the "high" rates claim. The national average for a 30-Year Fixed Rate is currently 5.12%, while the 10-Year Treasury note has a yield of 2.62%, a "spread" of 250bps (5.12 - 2.62 = 2.50). Though we know that the 10-Year Treasury does not have a direct impact on mortgage rates, they do tend to have a symbiotic relationship. Since 2000 the difference between the two has averaged 186bps. So all things being equal, the national average for 30-Year Fixed mortgages should be about 0.625% lower, or 4.49%... for a 30-Year Fixed Rate!!

I hope the Fed is learning that the free markets will always win out.

"You can bring a horse to water, but you can't make him drink."

"You can bail out banks with billions, but you can't make them lend."

"You can buy up Mortgage Back Securities in hopes of driving the yields down, but you can't force the lenders to pass that savings onto the consumer."

Ben Olson - Minnesota Mortgage Specialist, Mortgages Unlimited, Maple Grove, MN 763-416-2620

4.5% as a 30-year fixed rate could be here sooner than later! Yes we've touched the mid-to-high 4's for moments here and there, but we haven't seen those rates sustain themselves for more than a few hours at a time.

Today, the Fed began purchasing Mortgage Backed Securities under a program that they announced on November 25th. The Fed will buy as much as $500 billion of MBS by the end of the second quarter. Never before has the Fed had direct control over mortgage rates. The rates they do control are short-term rates that typically affect credit cards, auto loans and home equity loans. But now, with the ability to buy (and eventually sell) Mortgage Backed Securities, we are treading further into uncharted territory.

Like you, I'll take as much advantage of the lower rates as possible, but what will the consequences be? What are the future side effects of the "open market" being influenced so dramatically by policy makers?

Though we don't know the day or the hour, we are certainly in the times and the seasons where 4.5% will become a reality. Thankfully in the short-term, these lower rates will make houses more affordable and will hopefully begin to turn the housing market around, and help to shorten market times.

Ben Olson - Minnesota Mortgage Specialist, Mortgages Unlimited, 763-416-2620

Your "Big Why" is what gives you your focus, your purpose, and your determination to keep going and to stay positive. In Gary Keller's book, "The Millionaire Real Estate Agent", he uses the following example to show how a "Big Why" works.

Ever see anyone work the day before a vacation? It is truly amazing! No matter how they approached yesterday, today they have become a model for the entire world on how to get things done. Why? Because if they get it all done, they get to go play! That's a pretty Big Why! So the day before we leave for vacation, we're on a time-management mission! We don't sit around idly and surf the Internet or chitchat with fellow workers. We screen our calls, ignore trivial emails, and toss out junk mail with abandon. Maybe we even eat lunch at our desk or on the run, and by the end of the day we've accomplished more than we ever thought was possible in a single day and still have time to pack, drop the dog off at the kennel, and cancel the newspaper. It's simply incredible! How does all this happen? Because a Big Why brings big focus and big energy... HIGH ACHIEVERS ALWAYS HAVE A BIG WHY!

You may have experienced this exact setting just within the last week. So how do we keep this kind of focus every day? By taking the time to ask the question, "Why do I do what I do?"

I like the way Paul McKee (Keller Williams Realty Mid Maine) put it, "When you think of your Big Why, ask yourself ‘why', then after you've answered the question, ask it again five more times. It really digs deep and makes you think!"

Take some time to really ask yourself, "Why do you do what you do?" Identify your Big Why and keep it in front of you always. Every day will become more productive and more rewarding.

Ben Olson - Minnesota Mortgage Specialist, Mortgages Unlimited, 763-416-2620

In his book, "The Millionaire Real Estate Agent", Gary Keller talks about the Big Why... that diving force that keeps us focused and motivated.

The Big Why is about having purpose, a mission, or a need, that in turn give you focus. High achievers always have a Big Why powering their actions.

Though our "immediate why" might be money to pay the bills, or perhaps some other superficial desire, our Big Why will always be something that can sustain us through the ups and downs of our everyday business. It's the one thing that motivates us to keep doing what we're doing.

So you have to be careful when you're trying to discover your Big Why. We hope that what motivates you isn't just money or a comfortable retirement. The truth is, you can achieve those things faster than you think; then, if you're not careful, you'll be left with a lot of life and little reason to live it. We hope you're getting in touch with what truly motivates you. Maybe you love to do the deal. Some of the best agents I know love nothing more than a difficult negotiation that gives them a chance to really shine, to acknowledge objections, to discover a solution with which both sides can be happy. This is the kind of Big Why that doesn't easily fade.

I've also known real estate agents who like nothing better than providing exceptional service to their clients and handing them a key to their dream home. This kind of Big Why has led them essentially to become invaluable financial advisors for their clients, guiding them on investments so they can eventually buy their dream home.

He goes on to say,

As you've probably guessed, my personal favorite is the Big Why that drives people to be the best they can be. You might try thinking of it this way: Being your best is actually a goal-less pursuit. You can never ever really reach a point where you can truthfully say, "I just can't grow anymore." And what is so exciting is that this kind of Big Why can create personal growth. It is where the unimaginable you dared not dream becomes the imaginable you dare to live. And as far as money goes, when you are always striving to do the best you can do, you will always be making the most money you can possibly make.

So... what's your Big Why? What keeps you motivated to do what you do? What is your driving force? If you've never identified your Big Why, I encourage you to buy Gary Keller's book, and read it over the holiday. I guarantee your 2009 will be the most focused and successful year of your career so far!

Ben Olson - Minnesota Mortgage Specialist, Mortgages Unlimited, 763-416-2620