What if you wait until next year to buy?

Time to buy your new home!First-time homebuyers are flocking to the housing market in greater numbers than any time in the last few years.

Let’s look at an example of what the experts are predicting for the upcoming year, and what that really would mean for you. Let’s say you’re 30 and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 4%.

Your monthly mortgage payment (principal & interest only) would be $1,193.54.

But you’re busy and moving is such a hassle. You decide to wait until next year to buy. CoreLogic predicts that home prices will appreciate by 5.1% in the next 12 months, which would mean your dream home now cost $262,750.

Freddie Mac predicts that over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month would now be $1,410.50.

The difference in payment is a whopping $216.96 PER MONTH!

That’s basically like taking $8 and tossing it out the window EVERY DAY!

Let’s look at that number annually. Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!

Over the course of a 30 year loan, your home would cost an additional $78,105.60. That is not small potatoes. What could you do with $78,000 and change?

Now that you know what the cost of waiting a year to buy is, what do you think? Is it time for you to buy? Please call Josh Mettle at 801-747-1210 to see if it makes sense for your situation to buy now. Or click the chat button above to reach us. We’d love to hear from you. What is stopping you from buying a home now?

Thanks to KCM blog for this post.

Would you rather pay your mortgage or your landlord’s?

Build wealth with homeSome people have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:
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Meek may inherit earth, but they rarely get the best compensation

We know physician loans!Josh Mettle: I’m just kind of putting myself in the position of let’s say I’m coming out of residency or fellowship and I’m taking my first attending position and I get this offer letter. I’m excited at this stage in my life that I’m in. It’s been a very long journey and now my first real offer letter is in my hand.

Do you find that sometimes there’s just maybe a lack of courage – maybe courage isn’t the right word – but just the lack of there’s got to be some element of fear that would go through my mind. Certainly there’s going to be some trepidation about countering or objecting to the terms in one’s offer letter, especially if it’s your first offer letter. What advice would you give a young physician who’s thinking of countering that letter?
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Pending Home Sales Reach Highest Mark In 9 Years!

We specialize in mortgages for professionals!

The National Association of Realtors (NAR) recently released their Pending Home Sales Index Report and revealed that it is at its highest level since April 2006. The Pending Home Sales Index is “a forward-looking indicator based on contract signings”. The higher the Pending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales. The PHSI is a leading indicator for the housing market, since it takes one to two months for a signed home contract to be turned into a sale. Pending sales show where the market is heading.

Every region of the country has experienced year-over-year gains in pending sales as seen below:
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Three Critical Pitfalls of Physician Mortgages

We know physician loans!

If you spend a few minutes in physician chat rooms where the topic focuses on mortgages, you’re more than likely to read nightmare after nightmare and horror story after horror story. It’s so devastating to see what happens to a crushed home loan and what closing can do to a family.

One time out of the blue, we received a call from a young resident while he was relocating to Utah. The gentleman was working on a home purchase for two months and he was called the day before his closing and two days before he anticipated moving into his home with his wife and two kids.

They were literally driving across the country in a U-Haul truck, and told they were declined for their mortgage loan. He was wrecked. He did not know how to respond to that. He couldn’t believe that he could get so deep into a transaction, supposed to have his keys the next day, and move into his home, and at the last minute he was declined.

What we found out is that the loan officer had failed to realize that he had about $170,000 in student loans and they all showed a zero payment. The loan officer made the mistake of just excluding all of that debt from his debt-to-income ratio. When the loan finally made its way to an underwriter, the underwriter had not made the same mistake and eventually declined the loan.

Explore with us three pitfalls that you can implement today in order to make sure that this doesn’t happen to you.

Read the full article by clicking here.

By Dave Denniston, CFA and Josh Mettle

We love happy clients!

We know physician loans!

Thanks to our clients to take the time to let us know how we are doing and what we can improve. We’d love to hear from you!

“Today we were able to close on our home and sign all the documents. I just wanted to say thank you to everyone involved. Mostly to Brandon who admittedly considered buying a room size white board to make my loan happen ever since our first communication clear back in December. I’m sure my phone calls were not always the most pleasant and full of questions, but Brandon was nothing but pleasant and professional throughout. I also want to thank Josh for stepping in at the end to make sure we got this done. Once again, thank you from both me and my wife. Good luck with the other 100+ closings this month.”
Eric Lindley, MD, Interventional Cardiology Fellow 2014-2015, University of Utah Medical Center Division of Cardiovascular Medicine

“I have confirmed from my account today that the refinancing process is over and both of my BBVA compass Bank mortgages are paid off. I want to sincerely thank you for all the things that you have done for me and for your time and energy. This was a long process for the reasons that are obvious to you; however we arrived to finish line. It was certainly a great pleasure with you and I appreciate your professionalism and your knowledge. Hopefully in the process I did not stress you too much, as time to time issues came up. Some of it is my meticulous nature, so hopefully no hard feelings! I will definitely refer anybody to you that I know who needs a mortgage/refinance. You know where I am in California, if you happen to visit please let me know.”
Dr. Serhat Aytug, Physician, St. Jude Medical Center

Where do most millionaires make or hold most of their wealth?

Click here to watch on YouTube.

Eric TaitEric Tait:  Getting to business school, I kind of took my first financial accounting course. Enron was a big company here, a big company in the world. Doing their books, we found out about a year before they collapsed that they really weren’t making any money from operations. That kind of set me on the pathway of trying to find a different way to invest my own personal money.
I didn’t start out saying, “Hey, I was going to go out there and create an investment firm and have other investors.” It was really a quest to place my own dollars to begin with. Then it just so happened once we started doing it, we had other physicians who wanted to align with us. Getting to the real estate path when I was in business school and in residency, I just looked at many, many different ways to try to create income whether it be trading stocks to maybe kind of long-term buy hold person or looking at franchises, all of them required active, everyday management to really stay on top of it.

What I found with real estate was you could decide to do that if you wanted to or you could bring in professionals to do that for you. Then also in looking at it, I just asked the basic question: where do most of the world’s millionaires and billionaires even make or hold most of their wealth and it kept coming back to real estate. I’m not that bright a guy, so I just said I’ll just copy and follow instead of trying to create something out of whole cloth.

Josh Mettle: I think that’s the brightest kind of guy.

Please visit http://physicianfinancialsuccess.com/ to listen to the full episode and read the full transcript.

Eric Tait, MD, MBA – vernonville.com on our podcast

VAM3Tune in to listen to Eric Tait, MD, MBA founder and senior fund manager at Vernonville Asset Management as he talks about alternative investments as well as:

  • why he started his investment firm
  • the reasons he likes investing in real estate
  • where he feels physicians payment model is heading and why he feels creating passive income is crucial to stress levels and quality of life for doctors
  • his formula to see if a property is a good investment
  • the difference between price and value
  • what the 1 percent rule is
  • an equation to determine what you should pay for a property

Josh Mettle: Hello and welcome to the Physician Financial Success Podcast. My name is Josh Mettle, and this is the podcast dedicated to advising physicians how to avoid financial landmines. Today, we’ll be talking with Dr. Eric Tait, practicing internal medicine doc and alternative investment expert. In addition to earning his MD, Eric also earned his MBA in Entrepreneurship from Rice University. He is the founder and senior fund manager at Vernonville Asset Management. Beyond practicing medicine, Eric has analyzed, purchased managed, and developed numerous income-producing investment projects both domestically and now internationally.

Eric, I’m really excited for today’s show. Thanks for your time. How are you doing this morning?

Eric Tait: I’m doing great. Thank you for having me on.
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This is the most crucial part of a doc’s employment agreement

Josh talked to Dennis Hursh, a physician focused attorney about employment agreements on our podcast. Here is a short clip about the most crucial part of a physician’s employment agreement:

Josh Mettle: Okay, so this is one that I would guess 99 of the physicians miss and you mention that the restrictive covenant is one of the most important aspects of a physician employment agreement. Can you tell us what we need to know and what the risks are that surround this area of the agreement?

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If you can, buy now. Mortgage rates expected to rise!

One of the biggest questions plaguing the current housing market is where mortgage interest rates will be at this time next year. Over the last two months, rates have begun to creep up (see chart).

Interest-Rates.1

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