YOU Magazine - January 2011

Christy Fuentes Mortgage Consultant Capital Mortgage Corporation Phone: (405)692-2345 Fax: (405)691-3743 christy@capital-mortgage.com License: 218690

January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010		What Should You Expect in 2011, Part 1 Forecasts for the Economy and Employment – Their Impact on the Housing Market The economy and housing markets have seen some rough times the last couple of years. But the good news is last year we saw some stabilization in 2010 – and 2011 should continue on the road to recovery. Keep Reading »    You Spent What? Strategies for Talking to Your Spouse about Money Did you know that spouses who argue about finances once a week are 30 percent more likely to get divorced than spouses who argue less frequently about finances? Keep Reading »    Tasty, Healthy, Inexpensive, and Quick Four Words to Kick off the New Year By Kirk Leins The New Year represents a fresh start. It's a perfect opportunity to set personal goals for the next twelve months while putting any failures from the previous year behind us. 2010 is now a part of our past, so it's time to get excited about the future, at least the next 52 weeks of it. Keep Reading »    Travel Scams: Top Five Red Flags Is Your Travel Deal a Travel Steal? By Marianne Schwab Everyone wants to find a great travel deal, but how do you spot a travel deal from a travel scam? Since pre-payment usually is required for travel products, scam artists often concentrate on travelers. And the Internet has also provided growth opportunities for such illegal and unethical activity. Keep Reading »    Calcium: Absorbability Makes all the Difference So Does Building a Strong (Bone) Foundation By Dr. Linda Mundorff, MPH, MSN, ND, RN, CNC, CTN Bone growth is a gradual process that peaks around age 30. The process of bone loss will take longer if there is a good, strong bone foundation. This is why it is important to build and maintain strongbones while we are young. One of the most important minerals necessary to achieve this goal is calcium. Keep Reading »    A 4G Revolution for Cell Phones New smart phones and other mobile devices promise nearly instant Web access. But is the technology worth the price? By Jeff Bertolucci, Kiplinger.com So, what is 4G? Fourth-generation, or 4G, technology is the moniker the nation's cell-phone providers are using to promote the latest upgrades to their network infrastructures. The main advantage of 4G is improved performance: Sprint says that its WiMax 4G network is up to ten times faster than its 3G service, with average download speeds of 3 to 6 megabits per second. Keep Reading »

What is the Velocity of Money and How Does it Impact Home Loan Rates?

If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home.

Here's why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren't spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that's good for home loan rates. That's because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there's an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result.

Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact me.

Happy New Year!

Can you believe it's already New Years?And what a year it's been with the historically low home loan rates we've seen!  Don't let this year go by without seeing if you can benefit. Once you've settled in to the new year, give us a call. Let's review your mortgage plan and make this year even better for you!
Happy New Year!
Christy Fuentes

Happy Holidays

YOU Magazine - December 10, 2010

Christy Fuentes Mortgage Consultant Capital Mortgage Corporation Phone: (405)692-2345 Fax: (405)691-3743 christy@capital-mortgage.com License: 218690

December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010		Home (of Your Own) for the Holidays? Now May Be the Perfect Time to Buy There's no place like home for creating memories. And no place like home for the holidays. While it may sound a bit crazy to add this to your shopping list...this holiday season could be the very best time in history to give yourself the gift of a new home. Keep Reading »   The Simple Truths of Appreciation Acknowledging the People Who Matter Most Mary Kay Ash, founder of Mary Kay Cosmetics and one of the most successful entrepreneurs of all time, once noted, "Everyone wants to be appreciated, so if you appreciate someone, don't keep it a secret." Those are important words to live by not just during the holidays, but any time of year. Keep Reading »   December Dish Creating the Perfect Hearty Dinner By Kirk Leins December has arrived, and it's brought along some unfortunate baggage. It's freezing outside, our social calendars are booked solid, work is busier than ever, and our to-do lists are overwhelming. And, as if the cold and the chaos aren't enough to deal with, there's yet another challenge we face. I'm talking about the harsh demands of preparing weeknight dinners. Keep Reading »   Last Minute Holiday Travel Tips... For Planes, Trains and Automobiles By Marianne Schwab Do you remember the old Steve Martin movie about doing whatever it takes to get home for Thanksgiving? Well, whether you're taking planes, trains or automobiles to get home for the holidays, traveling can be very expensive and stressful...especially if you've waited until the last minute to make your plans. Keep Reading »   Vitamin D: The Key to Good Health What Deficiencies Could Mean to You By Dr. Linda Mundorff, MPH, MSN, ND, RN, CNC, CTN The news is out: Vitamin D is a hormone (not a vitamin) that targets more than 2,000 genes in the body. That's 10 percent of the total number of genes in the human body! But that is not all. Deficiencies have been implicated in at least 17 different cancer types, cardiovascular disease, ankylosing spondylitis, birth defects, and more. Keep Reading »   Signs Your Parents May Need Help With Money Tasks Look for these red flags when you spend time with mom and dad over the holidays. By Cameron Huddleston, Kiplinger.com The holidays can be a good time to assess whether aging parents are having memory issues and need help managing their finances – as well as other tasks. You might not notice many of the early signs of dementia if your only contact with your parents is by phone. But if you spend several days with them over Thanksgiving or Christmas, you should get a better picture of how they're coping. Keep Reading »