Retirement

One of the Venerables in my corner of the world is retiring. The word went out; her spot of the shopping carts is up for grabs. Now, mind you, I do not have a mind to retire myself, but it did put me in the frame of mind to think about retired folks. I see them, you see them. They walk in the malls, plan their days around their meals, drive big cars, make quick stops and turns use a lot of washroom facilities, make a point to know the names of kids and grandchildren.

They go out for coffee, read the obituaries, make a point to know the score last night, know which neighbor is scoring with which widow - or at least creating the illusion of scoring. They wash their cars, when they work they do so when they want to work. They go to town meetings and actually read the local weekly rag.

I look over the above litany and make note that those items are NOT retirement...that "is" Real Estate Agents. I begin to wonder...who retires from Real Estate? It IS retirement. What other gainful employment has so much chock full kibitzing and noshing and just all around social buitterflying. Maybe being a Mayor, but there is only one per city of those, so the waiting list is too long. I would stick to the Real Estate and not wait for the mayor spot...afterall after retirement comes the final real estate deal, and I CAN wait on that.

And Now a Word from Jim Brown of First Investors (Belmont)

Mortgage rates have remained relatively stable with a slight bump yesterday due to the increase in the T-Bills. Jumbo pricing has gotten alot better so that should
bring the Jumbo market back into play somewhat. Keep an eye on the adjustables as there is starting to be a big spread on the conventional adjustables versus the fixed
rates. Yesterday we had 5.25% with no points on a 5/1 year ARM. These adjustments
should make purchasing more attractive to borrowers. Be aware of the lenders who are adjusting for declining markets as we have lenders who are going solely on DU
conditions which does not require an adjustment. We can do 95% financing on purchases for singles even in a declining market.

Just wanted to tell everyone to keep the community homebuyer program in minds which
provides a lower downpayment and easier loan qualifications. We have a program
For:
1 Unit 97% LTV
2 Unit 97% LTV
3 Unit 95% LTV
4 Unit 90% LTV
The max combined income is $108,000.00. This is a great program for first time homebuyers.
CONFORMING
30 YEAR FIXED
6.000% 0 Point
5.500 % 2 Points
15 YEAR FIXED
5.625% 0 Point
5.125% 2 Points

Conventional 5/1 ARM
5.375% 0 Points
4.500% 2 Points
JUMBO
30 YEAR FIXED
6.375% 0 Points
7/1 YEAR ARM
5.875% 0 Points
5.375% 1 Point
5/1 YEAR ARM
5.625% 0 Points
5.125% 2 Points
GIVE JIM a call with questions, scenerios, or pre-approvals
Jim Brown
President
First Investors Mortgage Inc.
MB0063
24 Trapelo Road
Belmont, Ma. 02478
Work # 617-484-8383
Fax# 617-489-4976
Email: jimbrown@firstinvestorsmortgage.net

Pass the Puck

Summer is coming, and I intend to be on the ice. If you are a parent with a skating kid, a parent who wants his kid to play hockey, a parent who lives in Belmont or Arlington, come join us on the ice this summer. Yes I HAVE ICE, lots of it for hockey kids. Hockey Summer '07 is now Hockey Summer '08. For an hour each week I won't be talking homes and plot lines, but rather zones and blue lines - actually I'll be shouting it. Contact me if you want your kid in (boys AND girls). Oh, by the way...beware, I use the Suzuki method here...parents will be forced to come out onto the ice and make fools of themselves.

Touch base with me for details... 617.470.8085

Living Quarters

I saw a "Utah" quarter this morning. It sends the mind in motion to that day a long time ago when, getting what turned out to be a "Delaware" quarter in my change, I complained to the clerk that the said coin was not United States and must be from some foreign clime -- say Cambridge. The clerk, nun-plussed, explained to me that the coin is from a new series, "Coins depicting the states in the order that they joined the Union," she said. "Delaware is the first one. I'm going to collect them."

I asked her how to get them and she said, "In change. Over the next NINE years. They will do this until 2008".

2008 sounded so high-tech and space age. So far into the future that is was "un-fathomable". Yet it turns out it was all a "nonce", the flick of a hummingbird's wing: it was no time at all.

What it IS, is nearly 1/3 of the way through a thirty year mortgage. And to that end, I contemplated the financial implications of two souls over these last years --a renter and a buyer. The renter has paid $1,000 a month (let us be generous and not factor rent increases) for those 9 years or $108,000 to "the Man". The "newby" buyer in 1999 paid 150,000 for his modest home. He pays 800 a month in a mortgage and 200 in taxes and insurance. He has paid $71,000 in interest and $21,000 in taxes. That is $13,000 in tax savings (money not given to Uncle Sam). He has paid himself! (yes!) $15,000 in the form of the principle on the loan. And -- his property is worth about 25% more, or, conservatively, $35,000 more.

The numbers speak for themselves. I invite you to speculate in YOUR corner of the world. In my corner, The renter has spent 108k; the owner has lived in the home and is -- balance "sheetwise" -- $63,000 wealthier for the same cash out efforts.

That's 252,000 quarters. Now, if you can find a "Hawaii" in there, I'll be happy to trade you a "Utah".