The Tao of Mortgages
Francis L. Vena
Senior Mortgage Banker
Sales Engineering and Development
Tribeca Lending Corporation
6 Harrison Street
New York, NY 10013
The journey of a thousand miles begins with the first breath. Let’s hope
your mortgage broker helps makes your journey a good one.
Real Estate: The New Frontier
The New Year started with so many questions and really no one person can even
fathom where the market and mortgages are headed. We can expect a roll back in
prices, supply growing, and pressure on rates coupled with all banks tightening
their underwriting process and benchmarks. Also, keep in mind the old Taoist
saying, “Analyze the inner sanctum before you attempt to control the outer
sanctum.” (Mastering the Act of War, T. Cleary)
Regardless of the “outer sanctum”, your own personal situation overrides
the macro-dynamics of the financial equation.
Be defensive; prudent planning calls to go with a fixed rate versus arm; the
spreads are nonexistent and will not lower your dept to income ratios. In addition,
if you cannot sell your property within a pre-determined time frame, the fixed
rate will protect you against a ballooning monthly payment.
Take the path of least resistance (as stated in the Tao Te Ching, the heart
of Chinese Taoist philosophy written 2,500 years ago.) In other words, if you
are selling a property that has a very high profit and a buyer cannot attain
full financing, take back a seller second interest-only 5-year second mortgage.
It’s very prudent to lock in profit and not wait around for other buyers.
A wise old sage once said, “The first offer is the best offer.”
Run, analyze, and enhance credit scores to possibly refinance properties before
values and comparatives fall. This will reduce net interest cost and monthly
outlays to the borrower, especially if you own multiple properties.
In the future, we will provide ongoing thoughts about mortgages, money and other
capital tools merged with sound Taoist principles.
For more information or explanation, feel free to contact Francis Vena at (646)
207-8806 or fvena@tribecalending.com He
is willing to provide free credit reports, property analysis and other consultative
advice at no charge as a service to support Kahuna Valley. Click
here to go to Francis Vena's info page
|
