tag:blogger.com,1999:blog-24669300974067616882024-03-12T23:57:57.744-04:00Bo Knows The Economy!My 2 cents on what's going on. Do I really know economics? Nah, but it makes for good reading!Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.comBlogger126125tag:blogger.com,1999:blog-2466930097406761688.post-35334243599710995452016-02-11T10:32:00.002-05:002016-02-11T10:32:58.637-05:00"Timing" your closingAs investment advisors say, you can't time the market. But in real estate, there is one sure thing--the end of the month will be a busy time for closings. Why? Well, when you buy a home, the interest clock starts ticking from the date of closing. When you pay your mortgage, the interest is paid for the full month in arrears. That means that any interest 'charged' in the current month is due at closing. Let's put that into perspective. Today is the 11th. IF you closed today, your new loan's first payment would be due in APRIL. When you pay April's payment, guess what? You just covered all the interest for MARCH. That leaves February hanging so that would leave 19 days of interest left due and payable at closing. For a $200,000 loan at 4.25%, that would be around $23 per day SO you'd have to come up with $437 at closing to cover the interest. If you closed on the 29th, you'd have to pay ONE day of interest or $23; if you closed on Friday the 26th you'd pay $92. IF you are a cash-strapped buyer that extra money can mean a LOT (like paying for movers or pizza for all your buddies who are helping you move). I can see why people want to close at month-end but let me tell you why NOT.<br />
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Think of it this way--this is not a revelation to realtors and loan officers. They know their clients' personal situations and will try to schedule these cash-strapped buyers on the last day or as close to it as possible. Again, I get it BUT just realize that there are many issues that could come up. As EVERYONE is super busy, what happens if something goes wrong? Primarily, if the loan is delayed then the closing can be delayed. Again, everyone is busy; things happen. BUT why would you want to set yourself up for something to happen to YOU? Also, people tend to want to close on Friday. Why? Well, the theory is so that they can move the next day. IF something goes wrong though, guess what? If your Seller (especially if they are a builder) "doesn't care" that you have a $100/hour mover idling in the cul de sac. They "don't care" that you have everything lined up. If they don't get their money, it didn't fund. If it didn't fund, you don't own a home. If you don't own the home, do you expect them to just let you move in? NO. Again, they aren't truly uncaring people (hence the quotes around don't care). With that being said, ask any closing attorney or agent about horror stories about people moving in and causing damage, etc. prior to owning the home, with the extreme example of that happening PLUS something totally going south with the loan process and then they can't actually buy the home. Who would be stuck? THE SELLER. (SO if you are a Seller, think twice about allowing someone to move in w/o closing; call and ask me why sometime; that's another post!).<br />
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Tips? Close the equivalent of the week of the 20th or 25th on a WEDNESDAY. Why? Well, you're close to month-end (less out of pocket, CHECK) and guess what? If 'something' happens at closing, there are several days to sort it out. What could happen? Missing documents, underwriting issues, missing funds, delayed funding wires, delayed documents, etc. etc. etc. In all honesty, I haven't had many closings take more than a day (extra) to fund when issues have come up; but if it was on a Friday, you'd be looking for a hotel! <br />
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There's my tip for the day! Get out there and find your next home! (and remember to call us to close it for you!) BoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-51512818131987783092015-12-07T12:13:00.000-05:002015-12-07T12:13:50.867-05:00Spend, spend spendI had missed this email back in November but click <a href="http://www.ftportfolios.com/Commentary/EconomicResearch/2015/11/13/its-the-domestic-spending-stupid">HERE</a> for an excellent read on why the government's SPENDING is killing our country. Well reasoned and supported... Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-57281207820919222412015-06-11T11:33:00.000-04:002015-06-11T11:33:43.663-04:00Interest rates on the rise... move fast!Are you considering a home purchase? A refinance? The time is NOW. Why? Read <a href="http://www.cnbc.com/id/102746711">THIS ARTICLE</a> noting that rates are rising but also take into account that it is widely accepted that the FED will raise short-term rates this summer. Sure, those rates actually have nothing to do with Long-term (e.g. mortgage) rates BUT it will still affect the marketplace. If they do raise the "Federal Funds Rate" expect to see car loan interest rates to go up as well as 2nd Mortgage (HELOC) rates, which are based on the Prime rate AND don't forget credit card rates will likewise rise. SO as noted, while the Prime rate may have 'no affect' on mortgage rates, the factors allowing people to AFFORD a mortgage will definitely be affected (okay, if they don't have ANY car loans or ANY credit card debt or ANY other interest rate affected items, then you are correct, I am wrong ; ) <br />
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In sum-if you want to buy a house or refinance, do it NOW and definitely before August 1st when the world ends, thanks to dear old blubbering Barney Frank. Cheers! Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-15051047032218635102015-01-14T10:52:00.000-05:002015-01-14T10:52:53.682-05:00Rent vs. Buying in ATLThese people DO realize that you could buy a nice HOUSE in-town for somewhere close to the monthly rents listed, right???<br />
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Click <a href="http://www.bizjournals.com/atlanta/morning_call/2015/01/top-10-most-expensive-atlanta-neighborhoods-for.html?ana=e_atl_rdup&s=newsletter&ed=2015-01-14&u=AIE9ggwMphNSmCkAoGndog00a1c01f&t=1421249344">HERE</a> for the story. Bottom line--if you can afford rent over $1200 per month, you can afford a home!Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-7036798603127563752014-11-20T15:29:00.000-05:002014-11-20T15:29:54.494-05:00Home sales info! More info on the housing market (click <a href="http://www.ftportfolios.com/Commentary/EconomicResearch/2014/11/20/existing-home-sales-rose-1.5percent-in-october-to-a-5.26-million-annual-rate">HERE</a> for the article).<br />
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While I understand the comment from an economics standpoint I totally disagree with the 'concept' that existing-home sales don't contribute to the GDP. There is a HUGE ripple effect from the purchase/sale of a home--Sellers (hopefully) got paid and now can purchase another home or more 'stuff' (or pay down debt so they can get more 'stuff') and Buyers need to make that home 'theirs' (Home Depot/Lowes, here they come! Ditto for furniture, electronics, etc.). Regardless, good info! Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-58545484646946799892014-09-10T13:35:00.000-04:002014-09-10T13:35:26.191-04:00Buying vs. Renting--in a word: Wealth!Click <a href="http://realtormag.realtor.org/daily-news/2014/09/09/why-it-pays-be-home-owner">HERE</a> for a great article as to why homeowners are in general more well off than renters. Food for thought! BoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-43200764600323364992014-05-09T12:53:00.000-04:002014-05-09T12:53:00.357-04:00Renting vs. Owning--a quick commentaryI was reviewing a contract for a gentleman purchasing an in-town townhome in the $300's; his mortgage was going to be about $1700 with Dekalb taxes and it seemed like a killer deal. While he will probably pay some monthly HOA dues, I know that there are older homes in our area (Brookhaven) that can be purchased in this price point that would NOT require HOA dues. What is the point of this commentary? He moved out of an upscale apartment complex because his monthly rent on a 2 Bedroom/2 Bath apartment with less than 1300 square feet was going to be $1625 per month! OUCH! <br />
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I am just using this example to give you pause to think about why you're renting (if you are...). If you pay rent, it goes to the landlord. If you pay your own mortgage, your asset is (hopefully!) appreciating and your balance is dropping. If you do your homework, you can find something much larger than 1300 square feet for a lower monthly cost. Yes, you may have more to upkeep but the tax benefits alone may make it worth it! Regardless, I continue to be blown away by renters who pay such high amounts when financing is so inexpensive! <br />
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With that being said, move quickly! Rates are still low; inventory is still tight. BUT rates WILL go up and there will always be houses out there--you just have to dig! Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-42466846122121806082013-10-01T16:07:00.001-04:002013-10-01T16:07:59.781-04:00One way the shutdown could hurt the mortgage industryTake a look at this document from the Mortgage Bankers Association; this explains how mortgages could be affected by a prolonged shutdown. One client's thoughts said that we're probably good for the next few weeks but if this lasts longer, month-end closings could be affected! Yikes! <br />
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Click <a href="http://www.mortgagebankers.org/files/GovernmentShutdownImplicationsforMortgageIndustry.pdf">HERE</a> for the article. Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-4964503875400714702013-08-30T10:13:00.000-04:002013-08-30T10:13:11.756-04:00Why Good Credit is important for loan rates. I stole the following from a newsletter I received from a realtor friend, Byron Williamson (click <a href="http://www.byronwilliamson.com/">here </a>for Byron). This is great info about WHY it's important to maintain good credit! THANKS, Bo<br />
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There's a big difference between having an excellent credit score of 740 and the riskier low score of 620.<br />
Not only will the home buyer with the low score have a higher interest rate and mortgage payments, but the closing costs will be more as they pay points to the lender so they can get a lower interest rate.<br />
Lower score pays more for same rate<br />
Consider a $300,000 conventional loan with 20% down on a $375,000 home. To get a 30-year fixed rate of 4.65 percent (under recent market conditions), a borrower with a 620 credit score would need to buy 3 discount points, at a cost of $9,000, according to Joe Parsons, a senior loan officer at PFS Funding in Dublin, CA. But a borrower with a 740 credit score could get the same rate by paying only 0.25% in points, or $750.<br />
To get around the cost of paying points, most borrowers will accept a higher interest rate and slightly higher monthly payment. In the scenario above, a 740 credit score would allow them to pay no points for a loan at 4.875% interest and a $1,588 monthly mortgage payment.<br />
To get the same loan rate, a borrower with a 620 credit score would have to pay 2.75% points, or $8,250 more in closing costs, Parsons said. As an alternative, they could go with a higher mortgage rate - the highest being 5.25% for a $1,657 monthly payment - but even then would still have to pay 0.7 % in points, or $2,100 in this scenario.<br />
Having a good, bad or mediocre credit score can be the difference between getting approved for a loan or having to wait on the sideline to improve your credit.<br />
"If somebody is just right on the cusp, picking up five to 10 (credit score) points may save them $1,000," Parsons says.<br />
Savings, income won't lower your rate<br />
Other than buying down the rate, there's not much more than improving their credit score that someone with a score of 650 or less can do for a conventional loan. Additional assets will help someone qualify for a loan, but they won't get them a lower interest rate.<br />
"Mortgages are generally income based, they're not asset-based," Herb Ziev, a residential mortgage loan originator in Plano, Texas says. "Low credit scores mean higher default rates on home loans".<br />
"It doesn't really have to do with how much money you have, or how much money you make," Ziev says. "It really has to do with risk."<br />
For someone with a low credit score, compensating factors such as having a high amount of savings or having a high-paying job can help make them approvable for a loan, but they won't help get a better interest rate, says Greg Cook, a lender who specializes in helping first-time buyers.<br />
A home loan approval is based on the totality of a borrower's financial profile, Cook says. This includes consistent, verifiable income and a demonstrated ability to save, along with a credit score. The down payment and credit score have the two biggest effects on a loan rate, with a higher down payment needed if a borrower has a low credit score, he says.<br />
Improving your score<br />
The best way to get around a low credit score - and thus a high home loan rate - is to improve the credit score, which can take time, loan experts say.<br />
For someone with a lot of credit cards and credit card debt, a credit score can increase by 70 to 80 points by paying off the cards, he says.<br />
"Sometimes it's as simple as going back and negotiating if you have an outstanding collection," Cook says.<br />
Six to 12 months of paying down credit balances and not having late payments will significantly affect a credit score, says Cyndee Kendall, regional sales manager in Northern California in the mortgage banking division at bank of the West.<br />
Having a high percentage of credit balances to available credit can be fixed in a month by paying down credit balances, Cook says. The ratio should be 30 percent or less, he says.<br />
A borrower can have three different credit scores from the three credit reporting agencies, but lenders usually use the middle score.<br />
Borrowers with low credit scores have the most to gain by improving their scores, Kendall says.<br />
Easier approval on FHA, VA loans<br />
First-time buyers with low credit scores can get FHA and VA loans that aren't dependent on credit scores, though credit history is taken into account, Kendall says. For an FHA loan, a credit score in the low 600s is as low as they can go to get a loan, Ziev says.<br />
"They can get a better interest rate," Cook says of borrowers of the federal government's backing of FHA loans, "but they're going to have to improve their credit score."<br />
What shouldn't be done to improve a credit score is to get rid of credit cards entirely, experts say, though not using them for awhile is a good idea if it can help the user pay off the balance quicker. It's almost a Catch-22, but you need credit to get more credit.<br />
"If you've got no credit history, then people aren't going to give you credit," Ziev says.<br />
(note: Mortgage rates may change rapidly. All rates cited above are based on market conditions at the time of the conversation)<br />
Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-71912447517430147902013-02-08T13:36:00.001-05:002013-02-08T13:36:09.050-05:00Golf and taxesI am not a golfer. In fact, my standard joke is that I am a failure as a lawyer because I don't play golf. I have played about 4 times; with about a 90 for 9 holes for each 'outing'. Again, I obviously don't play golf. I am also not an Econ major but I love to dabble, as evidenced by this blog. I have to share an amazing article with you about what 'real' taxes cost. Please click <a href="http://www.ftportfolios.com/Commentary/EconomicResearch/2013/1/28/defending-mickelson">HERE</a> to read an article about Phil Mickelson's complaints about taxes. Pretty interesting read and shows how horrible our taxes really are. (then again, if you want to 'share the love' and steal from the 'evil rich' then this article will make you giddy--not me!). <br />
Cheers, BoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-3050083839821279512012-06-29T11:26:00.000-04:002012-06-29T11:26:14.624-04:00More unintended consequences with ObamacareI was intrigued to read <a href="http://www.bizjournals.com/atlanta/morning_call/2012/06/expect-to-pay-more-when-dining-out-due.html?ed=2012-06-29&s=newsletter&ana=e_atl_rdup">this article </a>about Obamacare affecting the Restaurant industry. Kind of makes you think... this is only the 1st article I've seen of its nature; I expect we'll see more of the same (or we'll experience more of the same). Ouch...Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-7081276524836892712012-03-03T13:39:00.000-05:002012-03-03T13:39:18.304-05:00Obama: Fuel Efficient Cars to the Rescue! Bo: HA!I read <a href="http://my.earthlink.net/article/bus?guid=20120303/51e7cbf9-311a-4afa-8b76-ce00fe503679">this article</a> today, noting that Obama is touting fuel efficient cars are 'the answer' to rising gas prices. Actually, lower gas prices would be the answer I am looking for. Let's put this into perspective here...<br />
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I am the 'greenie' in the family. I conserve water when I am able, recycle everything I can, turn off lights when I leave the room and keep the house cooler in winter and warmer (somewhat!) in summer. Likewise, if I had it my way, I'd have a lovely $25K solar array on my roof so the power company would owe ME credits on my summer cooling bills but the problem there is that I don't have $25K to make that happen! <br />
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I realize that we need to conserve energy and natural resources. I also realize that energy alternatives will be our future. HOWEVER (and this is a biggie) this is TODAY and NOW. Right now gas prices are too high; families are going to make proper choices with this new reality--do I go shoppping or do I fill up my tank so I can get to/from work? That's the TRUE reality today. Using ME as a case study, tell me how the new fuel efficiency standards are going to help ME? Oh, you say I need to buy a new car for that to happen? Sorry, that's not in the budget! SO now what? I am stuck paying for expensive gas! I cannot run out and buy that Gucci edition Fiat 500 (or better yet, an Abarth) or even a cool little Kia Soul like the other dancing hamsters. <br />
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No, while we are blessed to have 3 vehicles, the reality is something different than what Obama seems to realize. My commute? It's 57 miles a day. I can't change that (and remember that most of that 57 mile run will be spent sitting still or rolling at 5-10 MPH. As a closing attorney, I often close loans out of my office. Roundtrip to my Alpharetta client is around 38 miles (plus that lovely $1.00 in tolls on GA 400) but at least that's at speed-limit (or higher) speeds most days. What about those cars? 2 of the 3 take PREMIUM fuel and the other is a minivan that averages (on a good day) 19MPG. So what am I to do? NOTHING! I am expected to shell out almost $4 for premium and over $3.50 for regular. So again, how are those fuel efficiency standards helping ME? Cash for clunkers? No thanks. While the 1999 SUV has over 165K miles it's still running great; the 2000 sedan has over 151K and is still going strong. That 2009 minivan is the 'child' of our automotive family and is nearing 30K but no matter what we are unfortunately tied to the fuel pump. <br />
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So again I ask our current administration--what is that fuel efficiency doing for me? What does it do for 'Bubba' and his pickup? That single Mom with a car as old as mine? A working family who can afford only one vehicle? It does NOTHING for us all! <br />
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Why is gas so expensive? OIL prices are going up! Why are oil prices going up? Besides commodities brokers and Wall Street speculators (shame on you!) at last check the middle east is a mess and demand is through the roof in China and all over the world. How can you decrease prices? By lowering demand (NOT going to happen) OR to increase supply! Gee Bo, how can we increase supply? Why ask Obama why he didn't approve the Keystone XL pipeline (POLITICS of course!)? That would have increased supplies. What about drilling in ANWAR in Alaska? Again blocked by politics! Even though drilling today wouldn't result in oil production for at least a decade, it would put the world on notice that there are other sources coming on-line and as a result prices would DROP. But again, let's make the environmentalists happy at the expense of our National Security (yes, our SECURITY). <br />
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Bottom line, YES we need OPTIONS. But NO, right now gas prices are too high--a better Prius or a Ford Fusion Hybrid (41 MPG!) would be nice but that's not the answer. Not for right now, this second. More supply = lower prices! Give us more options for production! <br />
<br />Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-38703357645465823902012-01-24T11:23:00.000-05:002012-01-24T11:23:34.370-05:00An open letter to President Obama about the State of the Union AddressHere is the text of an email I just sent to the White House (from www.whitehouse.gov). <br>
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"In anticipation of the State of The Union Address this evening I want to put forth the following-I know your focus will be on the Economy and Jobs. With that in mind, I want to share something that doesn't make sense to me. I drive over 60 miles a day to get to and from work; I frequently have to drive to appointments as well. I have heard several predictions that gasoline prices will rise to over $4.50 this summer and with the saber rattling over the Straits of Hormuz I am not surprised by this. Couple that with the fact that my 1999 SUV with 165K miles takes premium my payments will be much higher. So why did you stop the Keystone pipeline project? This is something that will help OUR country and provide immediate jobs (I believe you have used the term Shovel Ready for several other projects that haven't yet started). I try to conserve and recycle and yes, we DO need to come up with other energy sources. But TODAY we need oil and that won't change. We also need JOBS. Please reconsider for the good of our COUNTRY (not political factions). Thanks for you time, good luck tonight!"
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So why did he block the Keystone Pipeline project? For Jobs? NOPE. For the Economy? NOPE. For the safety of our fine Union? NOPE. He did it to appease environmentalists. They believe this pipleline to be a horror show for our country. Yes, there are risks involved and they need oversight to ensure they 'get it right'. We DO need alternative energy sources; I wish I could afford a solar array on my roof so I could thumb my nose at the Energy companies during our hot summer but I can't. We don't have enough wind and the more or less 'clean' nuclear industry (yes, I know it's not perfect) is also blocked by environmentalists. SO what does that leave us? OIL. We need oil NOW and it's time to approve this (Especially before CHINA inks a deal with Canada).
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So in the interests of our country, why not approve this? OR are you interested in Elections and Polls? We will soon see. I am not so sure...Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-49260081262293339882012-01-11T14:01:00.000-05:002012-01-11T14:01:14.363-05:00Chapter 11?I just read an article about Hostess declaring bankruptcy. Why? To be able to truly <i>bargain</i> with their Unions and to ease some of their Pension pains. Look, I understand the problems of management versus workers but many of our unions have crippled their companies. It's pretty bad when such a well-known and well-loved company has to do something so draconian as to declare Bankruptcy in order to be able to negotiate! What's my thought on this? I am not a huge union fan obviously and I want to see more US companies be able to compete with foreign companies. Why did so many companies move offshore? Cheaper labor! I am sure the hourly wages are much different but if you add in all the governmental regulations PLUS the higher wages PLUS all the Union demands it makes for an easy business decision to relocate (not only that, compare rust belt Automakers vs. all the Southern US Plants--lower wages and benefits, yes, but people are WORKING). Look at all the new auto plants being built in the South--Kia, Hyundai, VW. Not only is it cheaper to produce here (due to exchange rates and shipping costs) we have a solid workforce. So I guess I'm just griping about unions today. Do I "applaud" Hostess' move? In some respects, I agree with it. However, no one wants to see someone 'fail' (at least that's how I see Bankruptcy). Will we see more of this? It all depends on the marketplace. In essence, both sides need to work together--pay a fair wage but work a fair amount. It's all in the balance! I wish Washington, DC worked like that... Cheers, BoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-28724597965722689162012-01-03T08:14:00.002-05:002012-01-03T08:14:48.989-05:00The US Budget definedI got this from an email (so of course it's true :)
SO even if the facts aren't fully correct, this is a pretty good depiction of why we're in such a mess. Have fun! (Sorry about the layout; don't know why Blogger won't let me format how I want it).
Why the U.S. was downgraded:
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000
Let's now remove 8 zeros and pretend it's a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385
Got It ?Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-47871994719255611882011-07-20T10:19:00.000-04:002011-07-20T10:21:54.210-04:00Repeal Dodd-Frank NOWRead <a href="http://www.humanevents.com/article.php?id=44957">THIS ARTICLE</a>. This is very well written, no matter what you think of Newt. I like Newt; perhaps not as my President, but as a solid commentator. I have long complained of the Dodd-Frank Act (and it's 'friend' HVCC) and its repeal would do wonders for our country! That important? YES!Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-49046418998933678872011-05-19T09:49:00.004-04:002011-05-19T09:59:36.436-04:00A mixed bag: Unemployment "Down" in GAI suppose any drop is a good thing, but since we're still at 9.9% unemployment, it's tough to get super excited! March numbers reported 10% so a .1% drop is small, but I doubt the 30,100 people who found jobs would complain at all! Most of the jobs were added in hospitality, services, trade, educational and health services and (so it is reported) construction (construction? really?). It's also important to note that we were sitting at 10.1% unemployment a year ago (April) so again, this is a good thing, but the last time it was below 10 was in June of 2009 when unemployment was reportedly 9.8%--and all the while we've been running above the national average. BUT, it's the third consecutive month of gains to "Way to go, Georgia!"Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-86412482896251121242011-05-13T15:32:00.001-04:002011-05-13T15:34:46.316-04:00Friday the 13--Feeling lucky today, punk?In case you've been under a rock today, it's Friday the 13th! And yes, that's a "Dirty Harry" reference (for those of you who are too young to know the movie, Google it and see what Clint Eastwood looked like as a "youngster"). Yes, some people will be extra nervous today, expecting something horrible to happen (or some horror movie reject jumping out of a dark corner with a chainsaw or an axe). Me? I'm more worried about the economy and business to fear Friday the 13th (actually, I have always liked the number 13). So what's going on? Lots!<br /><br /> Are you more upbeat today? According to a recent poll, 2 of 5 people believe the US economy will get better. No, that's not a ringing endorsement but it's still better than last month's poll (each randomly sampled over 1,000 people). Believe it or not, the death of Osama was one factor for the positive outlook but other news items are also helping to fuel the positives--job creation and sales data among them. Current pricing for commodities are dropping (silver, sugar, natural gas, and even OIL) and the dollar is strengthening (which allows the US to spend less to buy more!). This may be a temporary dip as it seems everything costs more (have you been grocery shopping lately???) and many of those increases have been due to higher fuel costs. Still, I am amazed that gas prices are over a dollar more expensive than last year. So much unrest in oil producing countries as well as supply demands, factored in with the switch to expensive 'summer blends' of gas have pushed up prices BUT expect prices to drop a bit as people changed their habits (drove less, traded gas guzzlers) and now supplies are up/consumption down so we're hoping to see $3.50/gallon again soon.<br /><br /> Despite gasoline cutting into our wallets, April retail sales were up-the 10th straight month of increases! Why? Earnings are growing (more jobs, higher wages, more hours worked), and people stepped back and paid down debt during the crisis (so now there is more disposable wealth on the sidelines). Sales are expected to keep rising in the months to come! <br /><br /> Recent employment reports are a mixed bag. Claims for unemployment fell last week by 44K, dropping to a seasonally adjusted 434,000 average. While any drop is great, it must be mentioned that 375,000 is the level generally accepted as being consistent with sustainable job growth so we're not there yet. Again, employers added more than 200,000 jobs in April for the third straight month. Various sectors were represented--retailers, factories, financial companies, education and health care-even construction! One source noted that Fed/state/local governments actually cut jobs (which may not be a bad thing for taxpayers as there tends to be overlap and waste in that area). So if gas prices are so bad, looks like employers are ignoring that and hiring more people! <br /><br /> The Fed is not ignoring the fact that despite commodities taking a breather of late, their last official statement noted "inflation has picked up in recent months." For now, they will hold the Federal Funds rate near zero, as has been the case for the last year or so. However, if inflation continues to take hold, they will have no choice but to raise rates (which would in turn raise other short-term rates like the Prime Rate, which will hurt many equity line holders as well as anyone carrying a credit card balance). If you further dissect their comments, in March they said labor markets "appear" to be improving; in April they noted they "are" improving gradually. What a difference a few words can make, eh? With that being noted, they talked about a few positive gains (household spending, business purchases) but they noted "the housing sector continues to be depressed." Gee, ya think? So what's going on with housing?<br /><br /> My view from the frontlines notes that yes, we're seeing more activity. However, we are still seeing a LOT of foreclosures, short-sales and investor purchases. As I've said before, if you have some cash, it's a buyer's market, baby! In late March, it was reported that new home sales were up (great!) but there is SO much inventory out there of existing homes, many of which are 'almost new' and all seem to be selling at deep discounts due to foreclosures and short sales (bad!). ATL home prices dropped below 2000 levels and hit a 3rd monthly low per S&P/Case-Shiller index. We're not alone--the U.S. as a whole is back to 2003 price levels. BUT, the Atlanta Board of Realtors reported sales were up 5% in February and median sales prices were up over 7% in March and foreclosures dropped a bit. So pricing remains a problem as well as credit--but again, who knew that rates would remain under 5% so long? That's great, but if you can't get a loan due to stupid laws and incredible restrictions on credit, what good is that? Likewise, these underwriting conditions are hurting entry-level buyers quite a bit and 'move-up' buyers are underwater or cannot hit the down-payment requirements for a new mortgage so looks like we're going to see a lot more renters for the short-term (Boo!). I hope that some common sense underwriting will return to our industry soon (repeal Frank-Dodd act?); it's still a great time to purchase a home--if you can. Good luck to all of you; thanks for reading and keep in touch! Remember--if you need a closing attorney, choose us! I'll be in touch again soon!Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-9475672753088049842011-05-13T15:15:00.002-04:002011-05-13T15:18:05.329-04:00Rent vs. Buy: The New York Times perspectiveSee <a href="http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html?_r=1">this article</a> from the <em>New York Times </em>to see what the fuss is all about. Also, read <a href="http://www.bizjournals.com/atlanta/morning_call/2011/05/nyt-still-better-to-buy-than-rent-in.html?s=newsletter&ed=2011-05-11&ana=e_atl_rdup">this</a> from the <em>Atlanta Business Chronicle</em> for ATL specific info. Rates are great; go buy now : )Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-9803513237448110532011-04-22T13:24:00.003-04:002011-04-22T13:28:00.868-04:00Interesting article on how to retire a Millionaire!<a href="http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/what-it-takes-you-retire-millionaire-no-matter-you/nCN7T/">This article from Clark Howard</a> is a pretty clear example expressing the time value of money. Pretty sobering to know that $14K invested at an early age can = $1M over time and how long (and how much money!) you'd need to effectively "catch up" later in life. So get motivated and get those kids out there saving money! (Note-I am unsure how they take into account inflation, but it's still a great idea to start early and contribute often!) Cheers, BoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-18414593825829889162011-04-12T15:09:00.002-04:002011-04-12T15:25:14.579-04:00Witness-only closings are a threat to you and your home...!I answer general questions from an attorney referral website from time to time. The scenario at the bottom (look for the link) REALLY struck a chord with me as this is a huge problem for citizens in Georgia. I must be honest that yes, my answers are self-serving as I would like only <strong>attorneys</strong> to close loans in Georgia. However, it's not just protecting myself and my business--it truly protects the <em>consumer</em> as well. These attorneys who show up at your house to be a witness for these out of state companies are not helping you out. Yes, it's convenient (and I do mobile closings from time to time--I happened to close a refi at a coffee shop with a good friend/loan officer this morning) but is it truly helping you? Let's look at the differences. <br /><br />So we closed at a coffee shop. As a GA attorney, we ran title here in GA (using an attorney-certified title abstractor). We processed the file in our office; a licensed attorney (ME : ) with E&O coverage closed this file along with a witness (and I am a GA notary). I processed this file and we will fund it using a GA IOLTA account (Interest On Lawyers Trust Account--required by the State Bar, and it funds indigent defense among other things). I wrote title on a GA licensed Title Agency, which will in turn cut a check to the proper oversight agency here in GA. If the customer has an issue with their closing, who will they call? ME. Who will pick up their phone (or call back within 24 hours)? ME. Who is liable for any mistakes on that file? ME. Period. <br /><br />Let's contrast that with a witness-only attorney who closed with their 'customer'-they received a file from an out of state company, showed up at the mutually agreed upon time and location and pulled out their notary stamp and pointed to where the customer needed to sign. When they were finished, they sealed up the FEDEX and sent it back to the out of state company/lender. NO taxes were collected in GA, no fees were generated in GA, no liability (so they think!) for the GA "attorney". So who does the customer call? GOOD LUCK PAL! And do you think that customer saved any money? From most HUD-1 Settlement Statements I have seen, the fees are more costly than a GA attorney's fees! Even if not, they are only slightly cheaper. <br /><br />Is losing your house worth saving $50? Read <a href="http://www.avvo.com/legal-answers/i-put-my-initials-on-the-security-deed-when-my-hus-447195.html?answered=true">this article </a>and see if you think it is....Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-5796080938679121102011-02-16T15:55:00.002-05:002011-02-16T16:07:16.329-05:00Georgia Economic 'Snapshots'When I first read the headline noting ATL is the #31 destination for movers according to U-Haul I was thinking 'cool, this is good for us!'. Unfortunately, when I read the article we were #1 in 2008 and #6 in 2009. People, Georgia is lagging! It's not just the data from 1.4M rentals by U-Haul--it's our water issues, our schools and our transportation problems. MARTA rail? Forget it... for a city our size we have the fewest miles of rail (compare us to Washington DC). We need to have a regional entity to make ATL competitive on that front. Many other topics but that's just one bugging me right now. The top 5 cities per U-Haul? 1-Houston (Houston?); 2-Orlando; 3-Vegas; 4-Chicago; 5-Portland. Oh what the heck-- 6-San Antonio; 7-Austin; 8-Brooklyn; 9-Sacramento and 10-Kansas City, MO (huh?). <br /><br />We're also #8 for "financial distress". We scored 61.3 on CredAbility's Financial Distress Index--a score below 70 indicates a state of financial distress. A score of 60 or less is considered an emergency crisis. We are unfortunately in "good company". The top-10 in order are: Michigan, Mississippi, Nevada, Alabama, Florida, South Carolina, Indiana, Georgia, North Carolina and California. The 'punchline' in this story is that these 10 states produce over 33% of the country's GDP (no, it's not really a punchline, more like a punch in the gut). In essence, economic indicators are looking up; it's just that individual bottom lines have not fully recovered. Give it time; hang on fellow Georgians! Who knows--maybe we'll be able to vote on Sunday sales sometime soon; wouldn't that be a novel concept!Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-69390583589167693502011-02-16T15:47:00.001-05:002011-02-16T15:48:42.739-05:00Losing to gain...?There was an <a href="http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisplayFullDocument&orgId=574&topicId=100020422&docId=l:1354208574&isRss=true">interesting article in the AJC </a>today talking about a couple that 'bit the bullet' and lost money on the sale of their townhome in order to purchase a new home for a pretty solid discount. That may well be our 'new normal' for quite some time with values continuing to drop (or remaining stagnant). This is a difficult mindset to overcome (to 'break even' or even lose money on a sale) and an even more difficult situation if a seller has to write a check to sell their home--how will they pay for their new home? <br /> There are more positive signs that the economy as a whole is looking up. Unfortunately, one of the indicators is somewhat misleading for us in Georgia. While unemployment has dipped to 9% in the US, the unemployment rate actually rose to 10.2% in Georgia. What is happening? Unfortunately, many of our lost jobs were tied to construction, be it commercial or residential. As we all know, neither area has bounced back solidly. I read an article in the Atlanta Business Chronicle and I think it actually said that there are NO commercial projects over 20 stories being built at this time and we all see the vacant strip malls and empty 'big box' stores all over metro Atlanta. <br /> So what's next for us? We still have several bright spots out there. The port in Savannah is growing like gangbusters (cross your fingers for money to deepen the harbor); the ATL airport is still the busiest in the world and Kia has expanded their plant already (and I believe they are expanding again!) down in West Point and there are other producers out there (though the new Volkswagen plant in Chattanooga didn't hire any Georgia workers--no wonder they chose 'the dark side' for their Super Bowl commercial). All in all, real estate is at or nearing the bottom. Prices are great; rates are great--no news there. The only change that needs to happen is to get people out there buying. Unfortunately, we need to get more people employed to make that happen. With that being said, consumers are out shopping again; my hope is that we'll see Home shoppers out there again soon!Bo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-42056730785023951722011-01-26T12:16:00.001-05:002011-01-26T12:18:11.906-05:00So you want to go to law school...This is an entertaining YouTube video : ) Have fun! Click <a href="http://www.youtube.com/watch?v=nMvARy0lBLE&feature=player_embedded">HERE</a> for the videoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0tag:blogger.com,1999:blog-2466930097406761688.post-75087868077517040612010-11-12T16:23:00.002-05:002010-11-12T16:33:33.648-05:00Good news/bad newsSo for the good news: mortgage rates are lower than they have EVER been in recorded history. Can you believe that? Rates are 'around' 4% and some say they may fall UNDER 4% if this QEII is successful. What's the bad news? Atlanta home prices (per the National Association of Realtors) have fallen 12.3% for the 3rd quarter, relative to prices a year ago. Not only that, the median sales price for ATL is $113,500 which is 34% lower than the peak prices of 2007. The odd thing about that is that I've heard so many say that ATL really didn't have much of a 'bubble' in real estate (truth be told, we had a bubble in real estate <em><strong>construction</strong></em>--which is why oversupply still exists)! Regardless of all that, keep positive and let's get people in houses! Time to move out of that basement and get into your new home! I hope sales remain strong for the next few months! Have a great weekend, BoBo Wagnerhttp://www.blogger.com/profile/14853041421646094822noreply@blogger.com0