Mortgage Blog

We see the stock crashes all the time. But after sometime, we will see that was our opportunities, and we hated ourselves why we did not buy and hold those equities. The coronavirus will come and go. It is the time to pick up good quality stocks, those stocks you wished to own but too expensive.

Let's back to my main business. Anyway, I still keep running, almost 6 miles everyday, and I will have LA Marathon on March 8, 2010. No fear, I will go and run.

Talked to a few clients about the mortgage.
1)One client asked about ARM rate for his primary home. I suggested him to cash-out the rental to payoff the primary home. This is not about the rate. This is about taxes. Since he already used the standard deductions, the interest payment will not save him any penny. But if he moves the loan to rental property, then those interest payment will be deducted from the rental income(or other way around, the rental income will be deducted, you know what I mean, you will pay less tax).

2)The 0.125% interest difference. This is not a big deal. Some people started a loan application, and found out the rate dropped 0.125%, then worried. Why? It is not necessary. The rate drop trend is your friend, and that means you might get lower rates later on. Just be happy when you get a good rate, and wait for the next opportunity.

3)We talked a lot about opportunities here. Mortgage money are cheap money. You do not have to pay them off fast. If you can, use it to invest somewhere. You can get 5.x% from AT&T. You can get over 4.5% from Wells Fargo. As long as you hold longer enough, and the company survives, then who cares about the short term.

4)Time is your friend. If you think about 10 years or 20 years ago, everything cheap. And if you think 10 or 20 years later, everything would be expensive, just stay and hold the equities, then you would be a winner.

5)And the last, do not trade too much and pay the taxes to Uncle Sam. Just get some good assets, hold long term. I am not an advisor, but I know how to do it. I did not trade stocks for the last 12 years. But my return was good since I do not pay taxes. And I know the market is down now, but it will be back.

Now back to the main business, I have very good 7/1 ARM rate. Check with me for your loan scenarios. Email: efloans@gmail.com.