A Bodey in Motion

Building momentum, one step at a time

FPU Lesson 8 – Real Estate and Mortgages

Making the right decisions when it’s time to buy or sell a home are a huge part of financial success. Below are my notes from the lesson, including the key points that I highlight from the video when leading the class, and some supplemental material that I think could help the class go further on this topic.

Financial Peace Unversity

Lesson 8, Real Estate and Mortgages

Key Points

Be patient when buying a home. Think like an investor. Overlook bad and outdated features. Use experts to confirm the home’s value. The purchase of a house is a major financial event in our lives. Rushing through the process would be a mistake. Surround yourself with advisors to find a house that you will enjoy living in and will hold it’s value.

Never get more than a 15-year fixed mortgage, with at least 10% down. No more than 25% of your take-home pay in house payments. Being house poor is usually a worse fate than being in heavy credit card debt. Setting a specific upper limit to your purchase helps keep you from being in over your head.

When you get ready to sell your home, think like a retailer. You’re not selling someone a house, you’re trying to sell them their new home. Your home is now a product, show off its best features.

Next week: Lesson 9 – The Great Misunderstanding

April 24, 2013 Posted by | Work and Money | , , , , , , , , | Comments Off on FPU Lesson 8 – Real Estate and Mortgages

Quick Hits of the Week

  • If you’re employed, what is it exactly that you do? Do you build widgets? Do you sell stuff? How would you describe your everyday work? Now, here’s the important question: How is your everyday work serving people? Dan Rockwell wants us to remember that the only reason we’re in business is to serve. If you can’t immediately see how the work you do serves others, then you need to take some time and figure it out. More importantly, if you can’t figure out how your work serves others, then you need to find work that does.
  • In the last couple of months, we’ve lost Sheriff Taylor,  Lt. Commander McHale, and Corporal Newkirk. That also means that we’ve lost Ben Matlock (Atlanta’s greatest criminal defense attorney), Dominic Santini (co-pilot of human civilization’s crowning achievement), and the most kissy-faced game-show host ever. I don’t like focusing on death, but it’s hard not to take note of the passing of television legends like these.
  • I’m a big fan of individuals creating and innovating. Looking at old materials in new ways, or putting a fresh spin on an old concept. So, it makes sense that the work being done by UpCycle Living would get my attention. Taking shipping-crates and turning them into affordable homes. Providing relief for Haiti. Not to mention, making a splash right in my own city. The engineer in me is busy assembling shipping-crates into different configurations in my head to see what kind of weird but interesting home designs could be created. The burgeoning financial coach in me wants to warn you not to buy one unless you are dead set on making a statement instead of an investment. These are a niche market with the potential resale value of a mobile home. I still liked them on Facebook, though.

Is there something valuable or important or cool or funny or weird or awesome out there I missed this week? I can’t hit it all, but you should let me know about it by dropping me a line or sharing it in the comments below! I’d appreciate the heads up.

July 12, 2012 Posted by | Quick Hits and Links | , , , , , , , , , , , , , , , , , , , | 1 Comment