Tyler Osby

Great Advice

I'm an advice guy. I've always enjoyed short, and to the point conversations (thanks Dad). Every once in a while I hear something that is such a powerful (yet, extremely obvious comment) and it's worth repeating.

Here It Is!

Are you ready for it? The quote I heard today was:

"To do as little as possible in the long run, Tyler, do as much as possible in the short run."

Go get it...

The Universe

Why Is The Universe Talking To You?

It's a valid question and one I have to cover before I make my point here. I subscribe to a super cool *FREE* daily e-mail called "TUT..A Note from the Universe". I don't get paid to mention them.. I'm probably not even on their radar, however, this is a very unique service and I thought I'd share it.

Wasn't that cool of me?

Each day I get a note from The Universe (or some really smart and sassy guy in a cubicle) and It's always motivational and makes you think.

Back to the Point

Yea, I did have one.

Financially, everyone wants to retire. They often want to retire sooner than later.

But guess what?... They want to buy the Escalade and throw it up on 30s (that's a big, big wheel..). They're ballin' right now. But what happens when they have to buy a Fiesta when they retire?....at 80. Not so sexy huh?

I'm not against living life and enjoying it at the same time. But live within your means. You may not live the super sexy lifestyle that gets you on the front of a magazine cover, but you'll be laughing all the way to the bank.

Application of this Information

If you haven't already considered what your long term plans are, you really should.

I'm not a financial planner (nor did I ever play one on television).... But I can connect you with someone who can help. If you don't start working hard now, you're much more likely to live a fruitful life long-term.

I'm Not a Motivational Speaker

As I'm writing this, I'm quickly realizing this is a little dorky.

The big 'takeaway' from this could be applied to many parts of your life, such as:

• Financial
• Significant Other
• Work / Career
• Reading?
• Physical Health...

Ok, I've got to get back to work - but if you have any great examples of where you could apply this quote, post 'em in the comments.

Either way, this is great advice no matter how old you are. If you don't start today, you'll only have to work harder in the future!

See YOU on the beach....

Tyler's Daily Blog is Found at WealthWithMortgage.com .

Also, If you have any questions, please don't hestitate to contact Tyler and his team!

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What’s The Real Estate Market Doing?

Do you ever wonder how our real estate market is here in Des Moines? Unfortunately, we spend a lot of time listening to how rough things are in other cities around the country, but too often we don’t really consider what our real estate climate is like.

I’m a fan of having as much information available before I take action on any big decisions. I don’t know about you, but I think buying or selling a home is a pretty big deal.

As a blogger and mortgage professional, when I receive good information - I pass it on. Home listings and sales are an interesting set of information most of us don’t have super easy access to. Thankfully, I have a Realtor that hammers me with e-mails (Just kidding, I don’t mind them) on market updates and her opinion on where things are at.

Do YOU Need Help?

As a mortgage professional, I cannot sell real estate. I can however help you connect with a Realtor. If you are looking for some answers, I’d be happy to introduce you to someone who can help! No question is silly or too off the wall.

I can also reach out to my connections throughout the country if you’re looking for real estate outside of Iowa. So please, feel free to contact us, we’d love to help!

Why Should You Care About Statistics?

Whether you’re looking to purchase, sell or refinance a home - this stuff matters. These statistics are compiled from the Multiple Listing Service and cover the Des Moines, Iowa residential real estate market.

With her permission, I post the facts here so you can come up with your very own market opinion. Here’s this week’s market commentary:

“I have decided to start including numbers to show how the new construction market is performing. I’m working on getting these numbers as accurate as possible, but it can be difficult if all agents aren’t reporting their listings as “new construction.” Our sale pending numbers and solds last week have increased over our 2 month weekly average, but days on market is holding steady in that 90+ day range. You can also see that our total active listings has decreased below 6400 which is the first time in many weeks, last year at this time we had almost 6900 listings on the market!” - Heather Barglof, RE/MAX Real Estate Concepts

(Click to Hugisize)

What Does This Report Cover?

I really enjoy this chart because it gives a breakdown of:

• Days on the Market
• Price Per Square Foot
• Number of New Listings
• Number of Expired Listings
• Number of Price Reductions
• Pending Home Sales (by price)
• New Home Sales (by price)
• All Active Home Sales (by price)
• Best of all, it compares this week vs. last week and last year!

This is a great chart. I’m not a Realtor and would never try to take the place of one. If you’re looking for statistics in your specific neighborhood (because your neighborhood is the only one that matters when you’re selling), I can help connect you with the right Realtor for the job!

We Love Great Information and Love to Give Great Information!

If you’re a super cool person and have any market statistics you think our readers would find valuable, please feel free to contact me. If it’s relevant, It’ll show up here!

If you’re looking for my professional opinion or looking for a comment (press related), please contact me here.

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Tyler's Daily Blog is Found at WealthWithMortgage.com .

Also, If you have any questions, please don't hestitate to contact Tyler and his team!

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Trying To Time The Real Estate Market?

Don’t. You may think that you’re going to get a home while it’s at the ‘bottom’. Here’s the thing though, are you considering what your overall cost of ownership would be? More importantly, do you know what is going on in the mortgage market today that will impact you 60 days, 120 days or 12 months from now? If you don’t, step back and listen. You may think you get the real estate market, but I’d be willing to bet you don’t know what’s happening in the mortgage market.

So What’s Up?

It’s a great question. The mortgage market has seen a lot of changes in the past year. Now that we’re pretty much down to conventional loans (Fannie Mae and Freddie Mac) and FHA loans, they’re calling the shots. As you may have heard, the conventional lenders aren’t being extremely profitable right now (understatement of the YEAR). Since they’re seeing rougher times, they’re naturally passing that cost onto consumers. The good news is you still have time to beat the clock! Remember, home ownership is not all about the price of the home. It’s your overall cost of ownership and your home financing should be taken into consideration!

How High Will Rates Go?

I want to be extremely clear - mortgage rates are NOT moving higher because of inflation fears right now. They are moving higher because Fannie Mae and Freddie Mac are re-assessing risk. They’ve seen way too many deals go south and they’ve lost their shorts (and so have their stock holders). Fannie Mae recently announced (last Monday) that they will be increasing their ‘adverse market fee’ from .25% to .50%. For consumers, that roughly means about .125%-.25% higher interest rate. That is about $16 per $100,000 your borrowing. Over 30 years, that’s over $5,700! Do I have your attention yet?

It Gets Better

Yes, Fannie Mae and Freddie Mac often follow each other. So, count on Freddie Mac instituting the same increased fees in the next couple of months. Furthermore, Fannie and Freddie have been implementing credt score (FICO) based increases to interest rates. You could literally have a 1% higher rate than some consumers just because of your credit score. This credit score based system is likely to stay and likely to get even worse. That’s right, it will get worse before it gets better.

Still Don’t Believe Waiting is a Suckers Choice?

I’m going to put together a comparison. This is simply for demonstration purposes only, but it should drive my point home that your overall cost of ownership should be what you’re focusing on.

Assumptions:
Let’s assume that homes could drop another 5% and that would be the skeptics “bottom”. Let’s also assume in this scenario, there will be 20% down (only to make this the best case scenario for skeptics). Let’s also assume that in the future the new ‘adverse market fee’ from Fannie Mae has kicked in with a small credit score adjustment (this really is more than fair).

Today:
You decide you want to buy a home for $200,000.
You are financing $160,000 (80% of purchase price).
You can obtain financing at 6.25% for 30 Years, Fixed.

Your monthly payment (principal and interest) would be: $985

Billionaire Investor, Waiting For Bottom:
You have waited for the home to be bought for $190,000.
You’re financing $152,000 (80% of purchase price).
You can now obtain financing at 6.75% for 30 Year, Fixed.

Your monthly payment (principal and interest) would be: $985

They cost EXACTLY the same!

The Big(ger) Picture

The one thing that isn’t being addressed here is the availability of these programs. If you’re putting 20% down, you’ll always be able to get a loan (assuming you have a job, and some money in the bank). However, What If:

• You’re short on cash?
• You’re a first time home buyer?
• You’ve got less than perfect credit?
• Don’t have a credit score at all?
• Need to use a roomate’s rent for income?
• Want that home that’s currently on the market?
• Your landlord kicks you out?
• A dog had a square….?

My point is these things begin to matter. If you want to bulletproof your approval, you need to get started today. While there is still a loan you can get. I’ve had multiple potential homeowners come to me (in the past few months) and I’ve had to turn them down (when they were well qualified) and they could have qualified without a problem just 6 short months ago. That hurts.

There Is No One Size Fits All Answer, But There is a Way to Find Out!

If the answer was the same for everyone, there would be no need for professionals in this business (oh wait, that recently changed huh?)… Truth is, things have changed. Some Iowans are sitting on the sidelines waiting for the ‘bottom’ of the market, but have no idea how their financing impacts their plan.

If you or someone you know is looking to purchase…. or sitting on the bench, tell them to check this out. I think the comparison is about as ‘best case scenario’ you could use. Trust me, things could get much more different.

As always, if you’ve got questions and need answers, I’m here to help.

Photo Kudos!

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Tyler's Daily Blog is Found at WealthWithMortgage.com .

Also, If you have any questions, please don't hestitate to contact Tyler and his team!