Today the Associated Press released statistics that Americans net worth rose by 3.8% during the last 3 months of the year last year. The numbers are showing how we are continuing to rebuild net worth lost from the recession. This is welcome news for us in the mortgage business because rising net worth means that the recovery is continuing. Higher net worth means more available cash and other assets to draw from in order to make mortgage payments.
The AP article also stated that cash accounts for 13% of corporate assets, the highest percentage since 1984. The 1/6 trillion dollars in cash being held by corporations could be used for job growth, much needed hirings which would bring the unemployment rate down faster.
In the recession we lost nearly 8 million jobs in this country. There are only just over 1 million replaced since. The recession technically ended in the last quarter of 2009, but jobs are lagging sorely. We still have a long, long way to go to recover the remaining 7 million.
Prices of oil, food, metals and just about everything are rising as the dollar is weakened by both federal government policy and the events that are unfolding in the world. The federal reserve announced that their policy of quantitative easing of interest rates will be phased slowly out, meaning that rates will be going up in the future at a planned slow pace.
If you are holding a seller-carryback note, I would say that now is most likely the best time to sell it. When interest rates rise and as the economy gets a little better and better, your fixed low rate on your note will become less and less attractive. The main factor affecting the discount on a note is the face rate or “coupon rate” it bears. If your note is only written at say 5%, when interest rates rise, it will have to take a higher discount to make up for the then market rate. A higher discount means less money paid to you.
Call or click for a top dollar quote on what your note is worth now. We have been buying notes for decades and have a great reputation to pay the highest possible market price.