Equity Cycling » Posts page

Mortgage Acceleration is HOT – HOT – HOT

Lin Ennis — Mon, 16 Aug 2010 22:28:04 +0000

A few years ago, when I started out in the mortgage acceleration business, I rarely used the term mortgage acceleration in public, because it was not instantly recognizable. Here are a couple of examples to compare…

If I say "high interest rates," you immediately know what I mean.
If I call you up and say "Hel," before I even finish the "lo," you already know I'm greeting you cordially. In other words, the term is defined before it's even fully out of my mouth.

Right now, in mid-to-late 2010, the term mortgage acceleration is pretty much on a par with "car sale this weekend," or "low interest rates." People get it as soon as they hear the whole phrase. Most people I'm talking with these days don't know how it works, but they like the idea.

That's a good thing, because as soon as we have common language, we can find solutions more quickly. The people with the problem and the people with the solution can understand each other because they are now speaking the same language.

Another term that I did think was very useful two years ago was Equity Cycling. Read tomorrow's post on why that's NOT – NOT – NOT.

Meanwhile, please remember we are people with a solution!

The Healing of the Credit Market

Lin Ennis — Sat, 24 Oct 2009 12:00:16 +0000

The credit market seems to be alive and well again as sales in the bond market continue to rise. In the first half of this year, record amounts of debt have been sold in both the U.S. and in Europe. Even year-to-date, at the nine month mark of 2009, the credit market seems to be on the mend.

With more than a trillion dollars in bonds having been issued in the U.S. and more than two trillion dollars in bonds having been issued in Europe, it seems that bond issuers are moving from a reliance on bank debt to pushing money back into the capital markets.

Investors have shown up all year for a variety of bond offerings, which illustrates there is a great deal of interest on both the supply and the demand sides for the bond issues of the future.

Some corporate bond traders have described the activity in the bond market as being on fire. No matter adjective or term used to describe whats happening in the bond market, its a positive sign for the credit market as a whole. A healing credit market may just send an elated sigh across the country (and possibly even the world).

Those doing the best in this market are the folks who've been using their homes to pay for their homes. Yes. Using the equity in their home to pay off their mortgage principal. The result? They can buy more real estate, always a good investment when entered into correctly. Watch a video presentation of how to pay off your home years sooner

Future Looks Murky for Homebuilders

Lin Ennis — Fri, 23 Oct 2009 12:00:21 +0000

Even though home sales are improving and prices are increasing, the outlook for homebuilders doesnt seem to be heading in the same direction. Moodys Investor Service, in fact, recently reported that it expects homebuilder companies numbers to decrease by approximately 8% in the upcoming year.

Moodys expects the overall housing market to find itself in a better situation, but combined with the hits the building industry has taken in the past few years, the forecast isn't so positive. The service predicts that homebuilders will still suffer an overall loss in 2010. Moodys further predicts that these losses may linger into the first half of 2011 as welleven as the market works toward recovery.

And as is often seen when it comes to adverse market conditions, things may get worse before they get better. With an increase in unemployment malingering foreclosures, further housing price decreases may be just around the cornerand for a period that is longer than what was originally expected by analysts.

Moodys and other services do expect the overall housing market to take a positive turn, but there are some obstacles it still has to overcome–obstacles that may make the recovery a more long-term than short-term process.

Those doing the best in this market are the folks who've been using their homes to pay for their homes. Yes. Using the equity in their home to pay off their mortgage principal. The result? They can buy more real estate, always a good investment when entered into correctly. Especially when prices are low. Smart investors will snap up homes they can rent as affordable housing and still make a handsome profit. Watch a video presentation of how to pay off your home years sooner.