G. Bruce MacDonald Real Estate

Independently owned & operated, Brokerage


A Lady Says Thank You

Anyone remotely interested in real estate (I realize not EVERYONE has my passion for real estate) is aware of a housing disaster in the United States.  Very basically, the banks, in their over exuberance to lend money in a real estate market that saw values dramatically increasing, created lending vehicles to allow people who had no real business of owing a  home  at least not homes of the value they were buying, to purchase.

To allow buyers to qualify, the banks created  SUB PRIME mortgages.  These mortgages were as much as 2% under the PRIME mortgage rate.  The effect was profound.  The buyers usually had NO DOWNPAYMENT  ZIP!  A $150,000 mortgage at say 7% amortized over 25 years would normally cost $1,050.62 per month, requiring approximately $42,000 of income to qualify.  Banks lowered the rate by 2% and extended the amortization (years to pay off) to as much as 40 years  lowering the payment to $718.21, requiring an income of $29,000.  THEN, after 2 years, the rates would go to as much as 9% to cover the 2 years of SUB PRIME.  Payments would increase to $1,138  over $400 more per month.  When prices leveled, disaster struck.

To bail out the faltering economy, the U.S. Federal Reserve is chopping rates and we can benefit too, as rates here are also being cut  currently @ 5.89 for 5 year terms or 4.75% for a variable rate.  I recommend a variable rate with the 5 year term payment schedule.  On a $150,000 mortgage, this equates to $950.00 / month  requires about a $40,000 income to qualify.

These thoughts were sparked by a letter I received from a young lady named Carol


Dear Bruce,


You don t know me but you have had such a positive impact on my life.  In 1998 your ad showed the cost of buying two homes with various down payments with a mortgage @ 5.9% amortized over 25 years.


My parents had recently passed away and a family friend appraised their home.  Although I trusted her, I was apprehensive about buying  I had never owned, and wasn t confident I could afford it.


Then, I saw your ad.  I inherited 25% of the home.  I studied your numbers for days, then I went for it.


I can t thank you enough for showing me the way indirectly and every week when I see your ad, I say a little Thank You Bruce , and you don t even know you helped me!


I hope this letter brightens your day  thank you so very much.





Believe me, it brightened my day (week, year  ).  Tell everyone you know about the satisfaction and pride that comes with ownership  talk to a professional who will explain differing payment schedules, cost savings, all things that should be considered when buying  give us a call, we d love to hear from you.