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Hail and Farewell
By - Craig Hill
No, No, No. I'm not going out of business and I'm not going to quit sending you these irregular missives. You'll have to put up with me for a lot of years yet. In fact, I was working on it the other day and I have carefully calculated that I can retire about three years after I die, if I keep working 60 hour weeks and the Real Estate market continues its current rate of growth.
Actually, I want to hail 2005 and bid farewell to 2004. There are some current trends that lead me to believe that your real estate investments will continue to grow in value and remain the heart of your financial planning. Here are some thoughts that you might want to research for your own benefit.
The National Association of Realtors forecasts 10 more years of growth in the real estate market. They also forecast increasing interest rates, a sustainable 5% appreciation rate and regional corrections towards national trends. That is good solid economic news but it has some rough spots for our area.
We can probably say farewell to the lowest interest rates most of us have ever seen. The long term rates are already starting to float up a little. The prime rate has been tweaked upwards and will see more fiddling as the Fed attempts to redirect some investor dollars back into the stock market. The really good news here is that there have been some great loan programs spawned by the low mortgage rates and we don't see those going away.
We can hail a little slower growth in prices with the increasing interest rates. Of course I want to see the strongest market possible but that means a sustainable market. Recently The News Tribune reported 14% growth in home values across 2004. I hope you read the whole article. Those numbers are really skewed by new home construction which is driving the mean price of all housing up to as high as $215,000 in our county. In reality, a 5%-6% growth rate is pretty darn good over the long haul. More importantly, it can be sustained. If you'd like the real numbers for your home, call me. I'll work them out for you.
Finally, farewell to friends and family who won't join us on our trip through 2005. Jeanne Hase, Les Rogers, Victoria Godinez, and LeRoy Hill you each made a big impression on my life.
So, Hail to the new year and Farewell to the old. Welcome to new opportunities and so long to old baggage. This is a great time for all of us.
Thanks from Craig and Gail
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Gail and I experienced a wonderful year in 2004. Business was super, of course, but this was a year that we were really tested. At the end of it, we just have to thank you for trusting us to help you with your real estate investments. At the end of a successful year it is easy to count transactions, pay the IRS and move on to the next set of tasks. But we need to say thank you.
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Some of you used us to purchase your first home and some to sell your last one. Some of you were just moving on, some moving over and others were moving up. Some of you needed help finding additional investment property and some needed to liquidate to take advantage of other opportunities. All of you who used us, however, trusted us with huge chunks of your personal wealth. Thank you. We understand your risks and we appreciate you for trusting us.
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We closed over 40 transactions in 2004 and nearly 30 of them came from referrals. Thank You.
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Every one of those 40 transactions had its own personality. In fact some of them took on lives of there own. Solving problems and completing the tasks you asked of us would not have been possible without your consideration and that of our other team members. Duane and LeAnn Garcia at Northwest Real Estate Magazine consulted with us for advertising while Susan, Sarah, Kristen and the whole crew at TICOR handled our title and escrow work without flaw. Shawn Lynch, our designated money man, was consulted on every transaction we initiated. We think each of our clients and customers benefited from their efforts last year.
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We've put together a thank you list. The problem is that we are guaranteed to leave somebody off. If you got left off, call, 'We'll take care of it'.
| Jeff & Shauna Barrison |
Amy Brown |
Brian & Kim Cornelly |
| Anthony Chrestler |
Marie Cronk |
Linda Daniel |
| Barry & Char Darling |
Bob & Debbie Deviney |
Christopher & Wendy Easter |
| Lyle Fox |
Steve & Christina Gagne |
Ralph & Amie Godinez |
| Janet Goodart |
Craig & Kristen Hill |
Ginger Hill |
| Holly Hill |
TJ & Sarah Kelly |
Helen Klatt |
| Shawn Lynch |
Diane Malone |
Anna & Karl Matsunaga |
| Tom & Mary Mc Andrews |
Robert L. Michaels |
Billie Middendorf |
| Dave & Tina Parkhurst |
Gerald Piefer |
Ginnette Rabon |
| Les & Susan Reeves |
Rory & Debbie Reynolds |
Kevin & Elisa Rizzolo |
| Jim & Ellie Simons |
Nick & Diane South |
Terry & Colleen Sprague |
| Joseph Strong |
Christopher & Erin Tavern |
Mike & Shawn Tavern |
| Diane Thompson |
Heidi Timmerman |
Craig & Mike Toups |
| Kasee VanWernigen |
Haley VanWeringen & Brian Hammon |
Mary Wilson |
| Rick & Brenda Wyma |
Troy & Jennifer Zamira |
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MONEY - Out with the Old and In with the New
Out with the Old and In with the New - Shawn Lynch, First Horizon Home Loan Corp.
As we enter the beginning of a new year, many changes are taking place in the mortgage industry and at First Horizon in particular. Now, more than any other time of year, is a good time to take a look at what's out and what's in at First Horizon.
First, there have been many changes in underwriting. We no longer are tied to archaic underwriting guidelines that hindered approvals in the past. In their place is a new risk-based underwriting system that is much more flexible and allows good borrowers to get their loans approved even if there is an area of concern that may have disqualified them in the past. We have many new loan programs as well. For our clients that are going to build their next home, we have a wonderful One-Time-Close loan that can allow a custom home to be built with no money out of their pocket. Gone is the old loan where you must put down 10% and then pay closing costs and interest as the house is built. In many cases, the new loan can be funded and the home built without any cash at closing.
In the past, we've had trouble with borrowers taking equity out of their current home to put down on their new one. It has traditionally required a bridge loan. These were cumbersome and costly. New, in its place, is our regular Home Equity Line of Credit, (HELOC) that can now be used specifically for this purpose. They are so much easier and smoother to close and it does not matter that the current home has been listed for sale! This will save the borrowers time, money and make the entire process much easier.
Of course the buzz for the latter part of 2004 and I'm sure will carry into 2005 is Interest Only loans. The old loans are not gone by any means, but these new loan products are taking the market by storm. They will increase cash flow on rental properties and lower the monthly bill on your current residence. While not for everyone, these are a wonderful fix for many situations.
Without lengthening this article further, it's safe to say that there is some type of loan out there for just about any situation. Feel free to contact Craig's team or me to discuss which one might be right for you.
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