Why do so many people beleive that Christmas is solely about the money we spend?
I've been saying this for years as do many people in the comments of this article. http://bit.ly/sFVEIX
Why isn't it about being close to family and friends and enjoying each others company? It's virtually the only time of year that we really stop what we're doing and make this happen as we're always "too busy".
Don't get me wrong it's nice to open up a gift or two and more importantly watching the children's eyes light up when they open their gifts! However, I would really like to see it go back to even when I was a kid. I did look forward to the presents, more importantly I looked forward to the big party in the evenings where we all got together and played as kids!
I guess I can keep dreaming and do my best to make sure my two little girls understand the true meaning :)
On a side note:
I particularly enjoy reading when big banks talk about this sort of thing. And quite honestly, I feel bad for the not so smart people who beleive what the banks say and beleive they have more money and spend more...all on the banks credit etc. More interest money for them!
Wednesday, November 23, 2011
Friday, October 7, 2011
How much more can we take?
Today I'm writing as I'm getting to that boiling point where many of you are as well.
There's one thing in life that I really can't stand and that's being taken advantage of. And especially being taken advantage of from our government and big corporations. Good on the people on Wall Street for taking a stand.
I wont get into the whole oil and gas spiel as I know I share the same views as almost everyone who depends on their car.
As well I wont get into the proposed 2c a litre gas tax being voted on today and the increase in property taxes to pay for a transit system that will NEVER work. Especially for us in the burbs.
My main focus is on banks and lending insitutions. In the last week we're seeing lenders dramatically reduce the discounts off of prime. They say due to liquidity issues. This is utterly wrong. In my opinion and I've been told by lenders themselve, the reason why the don't like variables is they don't make as much money off of them. So their reducing the discounts to bring them closer in line to the fixed rates so people lock in instead of float.
Oh and by the way, one lender just emailed me right now saying the discounts are pretty much gone as of Monday afternoon and will most likely be surpluses. Thanks for the heads up going into a long weekend!
Just today RBC announced rate cuts on their fixed rates. Conveniently only on the shorter 2 and 3 year terms. You may say this is good. No it's not! Why? Becuase anyone that bought into a fixed rate a few years ago are sitting in the high 4 to mid 5% range. If you wanted to take advantage of reducing your rate to lower your payments and pay less interest costs, you would have to pay an IRD (interest rate differential) on your current rate and the current 2 or 3 year fixed term. See where I'm going with this? I heard of one persons IRD go UP $4,000 in a matter of two days because of this. Absolutely NOT FAIR.
These big corporations are doing nothin more than taking advantage of us consumers by taking every last dime out of our pockets to put into theirs. Having a CEO making less than $10 million a year is just unheard of.
Anyways, theres my rant for the day and beleive me, I could go on for much longer!
Have a great long weekend.
There's one thing in life that I really can't stand and that's being taken advantage of. And especially being taken advantage of from our government and big corporations. Good on the people on Wall Street for taking a stand.
I wont get into the whole oil and gas spiel as I know I share the same views as almost everyone who depends on their car.
As well I wont get into the proposed 2c a litre gas tax being voted on today and the increase in property taxes to pay for a transit system that will NEVER work. Especially for us in the burbs.
My main focus is on banks and lending insitutions. In the last week we're seeing lenders dramatically reduce the discounts off of prime. They say due to liquidity issues. This is utterly wrong. In my opinion and I've been told by lenders themselve, the reason why the don't like variables is they don't make as much money off of them. So their reducing the discounts to bring them closer in line to the fixed rates so people lock in instead of float.
Oh and by the way, one lender just emailed me right now saying the discounts are pretty much gone as of Monday afternoon and will most likely be surpluses. Thanks for the heads up going into a long weekend!
Just today RBC announced rate cuts on their fixed rates. Conveniently only on the shorter 2 and 3 year terms. You may say this is good. No it's not! Why? Becuase anyone that bought into a fixed rate a few years ago are sitting in the high 4 to mid 5% range. If you wanted to take advantage of reducing your rate to lower your payments and pay less interest costs, you would have to pay an IRD (interest rate differential) on your current rate and the current 2 or 3 year fixed term. See where I'm going with this? I heard of one persons IRD go UP $4,000 in a matter of two days because of this. Absolutely NOT FAIR.
These big corporations are doing nothin more than taking advantage of us consumers by taking every last dime out of our pockets to put into theirs. Having a CEO making less than $10 million a year is just unheard of.
Anyways, theres my rant for the day and beleive me, I could go on for much longer!
Have a great long weekend.
Thursday, September 22, 2011
Inflation Hedge Strategy at Work
Here's the Inflation Hedge Strategy at work and how an un-managed mortgage compares to a managed mortgage from myself.
This strategy will save you thousands of dollars and shave years off your mortgage.
Most importantly, this strategy, avoids a potentially large payment shock at the end of your term.
The key to this, is to have someone manage your mortgage for you. Typically your bank will not provide this extra service and you'll only hear from them at the end of the term to renew. With me, at no cost, I will monitor your mortgage and implement this simple strategy to save you money.
Call or email me today if you need further explanation or would like to implement this to your mortgage! 604-786-9099 christos@gitersos.com
Here's the first video I created on this excellent strategy http://gitersos.blogspot.com/2011/09/inflation-hedge-strategy.html
This strategy will save you thousands of dollars and shave years off your mortgage.
Most importantly, this strategy, avoids a potentially large payment shock at the end of your term.
The key to this, is to have someone manage your mortgage for you. Typically your bank will not provide this extra service and you'll only hear from them at the end of the term to renew. With me, at no cost, I will monitor your mortgage and implement this simple strategy to save you money.
Call or email me today if you need further explanation or would like to implement this to your mortgage! 604-786-9099 christos@gitersos.com
Here's the first video I created on this excellent strategy http://gitersos.blogspot.com/2011/09/inflation-hedge-strategy.html
Wednesday, September 21, 2011
Influence and Association
Here I'm quoting one of America's top business philosphers Jim Rohn.
I truly beleive in a lot of what he says and this is no different. Brings true meaning to, you are who your friends are.
I truly beleive in a lot of what he says and this is no different. Brings true meaning to, you are who your friends are.
Purchase plus improvements
-This program is with all 3 insurers. The amount allowed for improvements is typically 10% -20% of the purchase price, or up to $40,000 maximum. The money is to be used for “improvements” or “upgrades”, not necessary repairs like leaks or structure issues. Also must be for something that adds value to the home, not a chattel like appliances.
-You need to get quotes for the cost of the improvements that the client wishes to complete. Add the amount of the quote/s to the purchase price, and this becomes the new purchase price. The down payment is now based on this new higher purchase price as well.
-The mortgage is funded in order to purchase the home, but the money to be used for improvements is held at the solicitor’s office until the work is complete.
-The work can be done by the client or a company/contractor, but client labor is not something that can be reimbursed for. If a client does the work him or herself, only the cost of the materials is released. If a contractor or company does the work, send us the invoice and we can pay them directly for the full amount at the end.
-An inspection report from an appraiser is required when all is done so we can confirm that the said work was completed.
-If the final cost ended up being less than expected, the left over money is applied back against the mortgage.
-You need to get quotes for the cost of the improvements that the client wishes to complete. Add the amount of the quote/s to the purchase price, and this becomes the new purchase price. The down payment is now based on this new higher purchase price as well.
-The mortgage is funded in order to purchase the home, but the money to be used for improvements is held at the solicitor’s office until the work is complete.
-The work can be done by the client or a company/contractor, but client labor is not something that can be reimbursed for. If a client does the work him or herself, only the cost of the materials is released. If a contractor or company does the work, send us the invoice and we can pay them directly for the full amount at the end.
-An inspection report from an appraiser is required when all is done so we can confirm that the said work was completed.
-If the final cost ended up being less than expected, the left over money is applied back against the mortgage.
Wednesday, September 14, 2011
What style of variable should I take? Open, closed, or LOC
Open? Closed? Line of Credit?
I get asked often whether or not I should go with an open variable, closed variable or if I should get a line of credit.
This is what I say.
The only time you would want to consider taking an open variable mortgage, meaning you have the ability to pay the mortgage out at anytime without penalty, is when you know for sure that you WILL be paying off your mortgage within the first 10 or so months.
In order to have the abililty to pay out your mortgage without penalty the lender or bank will charge you an increased amount over prime as opposed to a discount off of prime. This could be a large spread of over 1%.
If you kept your mortgage for more than the 10 months, it would be cheaper, interest wise, to pay the penalty on the mortgage, which is a 3 month interest penalty. This is cheaper than paying the premium on Prime on an open for the 10 months.
Every case is of course different and this is why we talk about planning and strategy from the get go.
Now when people talk about a line of credit there's one one important thing that needs to be said first. You can only obtain a line of creit with 20% or more equity in your home. If you have less than 20% equity, you can NOT obtain a LOC.
I also say to people, why would you want a secured line of credit at say Prime +.50 or higher, when you can have the same amount of money at prime -.50 or deeper today? You'd be paying 1% more for the priviledge of that LOC.
Well, I guess the interest only payments may be enticing, however, in my opinon, and I beleive debt is not good and should be cleared, paying that little bit extra and paying towards principal at a much lower rate is more realistic and a huge cost savings!
Of course though, everyone's situation is different and there may be a reason why you need a LOC attached to your mortgage. One being, you know a large sum of money is coming in. why pay a penalty on that portion of the mortgage your paying out.
Everyone needs to find a plan and strategy to make your mortgage work for you and not for the lender. This is what we'll do together!!
I get asked often whether or not I should go with an open variable, closed variable or if I should get a line of credit.
This is what I say.
The only time you would want to consider taking an open variable mortgage, meaning you have the ability to pay the mortgage out at anytime without penalty, is when you know for sure that you WILL be paying off your mortgage within the first 10 or so months.
In order to have the abililty to pay out your mortgage without penalty the lender or bank will charge you an increased amount over prime as opposed to a discount off of prime. This could be a large spread of over 1%.
If you kept your mortgage for more than the 10 months, it would be cheaper, interest wise, to pay the penalty on the mortgage, which is a 3 month interest penalty. This is cheaper than paying the premium on Prime on an open for the 10 months.
Every case is of course different and this is why we talk about planning and strategy from the get go.
Now when people talk about a line of credit there's one one important thing that needs to be said first. You can only obtain a line of creit with 20% or more equity in your home. If you have less than 20% equity, you can NOT obtain a LOC.
I also say to people, why would you want a secured line of credit at say Prime +.50 or higher, when you can have the same amount of money at prime -.50 or deeper today? You'd be paying 1% more for the priviledge of that LOC.
Well, I guess the interest only payments may be enticing, however, in my opinon, and I beleive debt is not good and should be cleared, paying that little bit extra and paying towards principal at a much lower rate is more realistic and a huge cost savings!
Of course though, everyone's situation is different and there may be a reason why you need a LOC attached to your mortgage. One being, you know a large sum of money is coming in. why pay a penalty on that portion of the mortgage your paying out.
Everyone needs to find a plan and strategy to make your mortgage work for you and not for the lender. This is what we'll do together!!
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