What does the Fed Rate Cut mean to you?

Well, that's a steep question isn't it. First, let's make sure we're clear that the feds DO NOT control first mortgage interest rates. Economics control the rates. Does the fed rate cut influence economics, absolutely yes.

Being that the feds cut a whole 1/2 point, will almost work against mortgage rates in the next few weeks. The bond market was negatively effected, therefore putting upward pressure on rates.

However, the feds also cut the discount rate again which is the rate at which banks borrower their money. Banks get money cheaper, they've already built in stiffer margins, now they can ease slightly assuming the secondary market comes back and mortgage can once again be bought and sold easily.

Hang on tight, get your ducks in line, and be ready to move quickly should you be in a position to refi or purchase.

If you would like some more in sight, or a free mortgage review, feel free to contact me anytime.

Don't forget to tune into the Straight Talk Real Estate show this Sunday, 6PM on KRLA am-870 or online at www.straighttalkre.com.

The Greatest Real Estate Market in 10 years...

That's right, this is one of the greatest real estate markets we've seen in over ten year! It's all in your perspective.

Some may sit back and be saying, what a horrible time it is. Prices are falling, jumbo loan rates are skyrocketig, qualifying for a new mortgage is almost immposible, etc, etc, etc.

The way I see it, for those who listened to good advice, got liquid, and who were prepared for the 'crash', there are tremendous opportunities.

Homes are not a bad investment right now, in fact, this may be one of the greatest buying times we'll see for another 10-12 years as real estate always has been very cyclical. Homes are on sale, at a discount, like a pre-holiday sale. If you could turn back the clock and purchase the home you live in for 40, 50, 60, or 70 cents on the dollar would you? Of course you would, and that's what we are already seeing, and I imagine will be seeing more of in the coming months.

As I spoke about on the Straight Talk Real Estate program last Sunday, more mortgage loans are due to reset in the next three months than ever before in history, according to a report by CNN Money. More home owners than ever will see their payments slightly, to significantly increase. For those who are qualified, can document their income, prove reasonable and logical assets, and have decent credit, there shouldn't be a problem, assuming they have equity left in the home. For the rest...this could spell huge disater. It's no surprise that there will be an increase in default rates, more bank owned property sales, and foreclosures.

The bright side? Again, the buying opportunities that lay ahead. I have several neighbors who made a fortune in the years following the big LA earthquake. The other good news? It's not too late to get prepared for this opportunity. You are sitting on tons of cash if you've owned your home for more than 5 years. Take advantage of the cash you have access to. Get liquid. In no time at all, you'll be enjoying huge profits. In the mean time, you can also be earning a conservative, safe return on your home equity.

If you would like a copy of 'How the Affluent Manage Home Equiy', visit the website and 'ask a question' to request the report.

On a side note, we had a blast playing CashFlow 101!!! Thank you to those who came out. We look foward to another fun crowd at the end of this month. Check the events page of the radio show website.