I just read that nearly 25% of mortgage holders in the US are underwater, owing more on the mortgage than the house is worth. That is bad news. Next year a bunch of 3/1 ARMs will reset. This is usually not a problem, in general the rate would roll over to the prime + whatever markup you signed up for, except if the home is 10% or more underwater the mortgage company can turn it into a fixed rate mortage. If you've been paying an interest only rate for 3 years and one of you lost your job, it will be doubly tough to pay a fixed rate 30 year on a home that is worth less than what you're paying for it. Watch for more empty houses near you.
Bri and I sold our small Florida condo in March of 2006 and relocated to Cary, which has not lost value. I'd like to tell you that I saw the writing on the wall, and I did to the extent that I knew the houses around us in Orlando were selling for much more than they were worth, but if I really did then I would have sold the REITS short in late 06. The truth is we just got lucky with the timing. We might step up in the next year or two (no garage at our place), and one of my personal finance goals is to pay the mortgage off as quickly as possible. I don't care about the opportunity cost of the cash or the possible amplified return we could get from using leverage to play the Forex or commodities markets, a house you own is a house that can't be taken away, unless the government seizes it, in which case you'll find us arming up with all the other militias that will hopefully fight for the Constitution, booya.
If you have not seen them, Delta Triathlon has put up several videos we filmed a few months ago discussing various aspects of triathlon training. I am the dude doing the lecturing.
Just got back from a visit to the studio at Rival Health. The owners are going to let us reshoot the lecture portion of the Powerstroke DVD video there in exchange for use of the film in their site and some developmental content from One Step Beyond. Not a bad deal at all.
Our next Powerstroke clinic dates are January 24 in Huntersville and January 30-31 for a 2 day clinic in Cary.
Don't forget about the February 2010 Winter Training Camp in Florida.
Running the Inside Out Sports Turkey Trot 1 mile this Thursday. Happy Thanksgiving!
Tuesday, November 24, 2009
Life is good
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