Financial Update by Maurice Soussé

The rates are holding very steady and are as low as ever. The economy seems to be stagnant not only in the US but worldwide. The FED continues to purchase mortgage backed securities keeping rates very low.>/p>

A suggestion for you on a challenge that has been coming up recently. When you write a purchase contract, do not mention furniture anywhere in the contract. Furniture is personal property and is not part of the real estate sale. Whenever you include furniture in the contract a value is supposed to be placed on the items and reduced from the sales price. For example, a price of $500,000 with an 80% loan would be $400,000. If a value of $10,000 is placed on the furniture, the bank then lends 80% of $490,000 for a loan of only $392,000. Sometimes we are lucky and a “zero value” letter eliminates that problem, but often times not. Because furniture is personal property, we suggest you keep any mention of it out of the sales contract and create a personal bill of sale. If you determine it is $1 for the furniture, so be it. It is best if we don’t see it.

Lech Walesa said “The thing that lies at the foundation of positive change, the way I see it, is service to a fellow human being”. Do something good for someone today and see how it makes you feel.

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