Addicted to (Spoiled By?) Ultra-Low Interest Rates Two years ago, when the shortage of housing inventory in the Twin Cities first became apparent, the leading theory was that underwater homeowners literally couldn’t afford to sell.* Now that local housing prices have rebounded significantly, that theory . . . umm, holds less water. With current Twin Cities housing inventory the...Read More
Wasting a Perfectly Good Postage Stamp How low are interest rates today? So low that it literally doesn’t pay to spend 44¢ on a first class stamp to mail a deposit to my broker’s local branch, vs. using their (free) self-addressed envelope and sending it out-of-town. Time Value of Money? Infinitesimal Once upon a time...Read More
Why Aren’t Contracts for Deed More Popular? With interest rates in the toilet and the stock market having already almost doubled from its 2009 low, you’d think that there’d be more takers for contracts for deed. An alternative to bank-financed mortgages, they allow Buyers with tarnished (or too-brief) credit histories to buy, and Sellers to sell...Read More
The Factor in Selling a Home Today If you have a choice between price and terms . . pick terms. –famous real estate line Once upon a time, when mortgage rates were in the stratosphere, “terms” — specifically, financing terms, if the Seller was providing it — were everything in real estate deals. Fast forward...Read More
1.5% in Really Big Type is Still . . . 1.5%Just a heads up to whoever writes the marketing copy for banks advertising “fat” interest rates on their saving deposits, CD’s, etc.: 1.5% in really big type is still just 1.5%. And it doesn’t matter how pleased the actors in the ads look.Read More
