Warning: Tap Into Your Equity Now & Ensure Greater Returns!
Housing prices have appreciated at record levels in recent years, so you were wise to make this investment. On average, housing prices have risen over 56% nationally during the five years ending in June 2006. Some homeowners have even seen the value of their home increase over 100% during this same period.
Times are beginning to change, however. It was just announced that for the first time in 11 years, national housing prices fell in value. Not only did home prices fall 1.7% compared to a year ago, the price decline was the steepest in 38 years. Last week, USA Today reported that the National Association of Realtors projects that prices will continue to fall through the end of this year. The reason for this projection is that home sellers are reluctant to reduce their asking prices even in the face of rising inventories. With more homes for buyers to choose from, those homeowners who have to sell may do so at lower prices.
What does this mean to me?
Now is the time to think about the future for you and your family. As home prices are starting to decline, there may never be a better time to reposition your equity and employ those funds elsewhere.
Government statistics tell us that the Personal Savings Rate of Americans has been in the red since the first quarter of 2005. In a statement last week, Ben Bernanke, Federal Reserve Chairman, said that Americans need to start saving more, spending less, and preparing for retirement as we are living longer and medical costs are projected to rise.
While everyone's ultimate financial goals will vary depending on age and family status, it's important to ensure that they include a plan to minimize debt and plan for retirement.
What should I do?
The greatest opportunity to control your money can and should begin with your mortgage. The rate of interest you pay on your mortgage is typically the lowest interest rate you can obtain. The tax deductibility of your mortgage interest can drive the effective interest rate you are paying to below 4.00% depending upon your tax bracket at current interest rates.
Consolidating non-tax preferred interest accounts, including charge cards and automobile loans, can free up cash flow to devote to savings and provide a cash cushion for emergencies.
Three out of five people do not have an IRA account. Nearly one in three people do not participate in their company's 401K program. There is no better time to start investing in your future than today.
In many cases, homeowners who restructured their debt have saved over $700 a month in cash flow. By investing these savings into an investment vehicle yielding 8.00%, your money will grow to over $1 million in 30 years. Stocks have earned 12% on average annually in the post-war era. Obtaining a similar return on a $700 a month investment would result in your money growing to nearly $2.5 million.
Interest Rates for Fixed Rate Mortgages are very attractive!
Fixed interest rates are the lowest they have been in months, but they may be starting to rise following the economic news of last week. If you were waiting for rates to dip further before considering refinancing, THE TIME TO ACT IS NOW!
Call me today, and I'll prepare a FREE Analysis to see if a new mortgage program could benefit you.

