Market Update for October 20 2014: Tremendous Opportunities

By chrisking • October 20th, 2014

I’m looking at this 4th Quarter of 2014 as a time of tremendous opportunity. As I write this newsletter, I’m noticing bank rates on 30 year fixed mortgages at or around 3.875% at 0 points. We can attribute this most recent drop in rates to global insecurity: European economies are struggling, as is that of China. Add to this the bombings in Syria; the uncertainty of international relations with countries such as Turkey, Russia and Ukraine; and even a global epidemic with Ebola, and we find an explanation for low rates in the US. In times of trouble, rational actors both here and internationally are moving their money into US Government Bonds, which in turn drives down mortgage rates.

On top of increasing refinance opportunities and more purchasing power due to lower rates, I’m adding more professional offerings to my own repertoire. I am now a licensed Life Insurance Agent, and I’m excited to begin reaching out to clients offering them opportunities to consider Life Insurance as not only a mode of protection, but also as a powerful, conservative investment tool. Cash value life insurance is something that I greatly believe in and have invested in. Not only do these policies protect my heirs if I should die (the funds are inherited estate tax free and could be used to pay my mortgages in full, giving my heirs property that is free of any loans), but the policies also grow cash value, which I could use someday in my retirement years. These accounts offer guaranteed returns between 5% and 7% annually (sometimes higher!) backed by the full faith and credit of the institutions providing the insurance. Some of the companies, such as New York Life, have survived and paid dividends through the Great Depression and most recently through the Great Recession. Principal protection, mortgage protection, protection of loved ones and guaranteed returns far in excess of any bank CD, are just some of the reasons that I would like to make this product something that I share with my clients.

On top of these happenings within CPK Mortgage, I’m also attending school part-time to obtain my Emergency Medical Technician license as I plan to enter the Fire Academy in January of 2015. It’s likely that I will be able to pursue a career of service as a Fire Fighter while still maintaining the boutique mortgage and life insurance company that I have now.

For these reasons, I couldn’t be more excited for this 4th Quarter of 2014 and for the prospects of in 2015. I feel blessed to have all of you in my life as friends, clients and associates. Know that I’m here to help you and your clients in any way that I can.

 

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