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July 2022 President's Message

     It’s official! The first half of 2022 is now behind us. The current zeitgeist in the housing market mostly relates to inflation. This reminds me of a book I read a few years ago called The Tuttle Twins and the Creature from Jekyll Island. This is just one book of a series that are meant to teach kids about the principles of a free society. This book talks about the Tuttle twin’s grandparents taking them to a movie. They overhear grandpa complaining about how expensive everything is and how movies were 50 cents when he was a kid. Grandpa talks to grandma about the creature from Jekyll Island stealing his money. The kids overhear them and are worried about this monster. Long story short, grandpa and grandma are on a fixed income, and the creature from Jekyll Island is really a representation of a group of people that control the money supply, which in turn affects inflation.       When the money you make doesn’t outpace inflation, you become poorer and poorer. This can happen to peo
  It’s a Battle Between Stocks and Bonds!  Who Will prevail? In these final weeks of Spring, I’d like to say congratulations to all the young graduates.   Graduation is a time we all remember, and I must say that it was great to see some resemblance of normalcy this year.   I also wanted to make one special shout out to Aiden Rodriguez, son of VP of Operations, William Rodriguez.   He is the first of the Smart Money kids to graduate from high school and we are all very proud of the fine young man he has become.   Continue to do great things, Aiden.   The aunties and uncles at Smart Money are cheering you on! Now on to mortgage news.   In our last newsletter, we spoke about the relationship between the Fed Funds rate and mortgage rates.   I hope you all got something valuable out of that article.   Today, I’d like to discuss the relationship between stocks and bonds.   Specifically, how stocks affect mortgage rates.   Imagine two buckets.   One bucket represents the Stock market a
Attention Home Buyers - Strategies to Get Your Offer Accepted by Sam Paltikian, Realtor-Associate® (RS-79996) Buying a home is very competitive due to low inventory and buyers competing for the same properties. When you find a home you like, make a strategic plan with your real estate agent to make your offer enticing and too good to pass up. A few items to consider include: How long has the property been listed? Properties listed within the past week means it could be competitive, as it is still fresh. Longer days on market typically has less competition, since potential buyers have already seen it, and did not want to make an offer. Study the market pricing of sold properties in the area, over the last 6 months (check out the interactive below!) When you apply for a loan, an appraiser will determine the market value by reviewing recently sold properties in the area similar to the home you are purchasing to determing the value of the property. Think like an appraiser!

Consider a Trust to Protect Your Home

Owning a home in Hawaii means you own property worth protecting. A trust can serve as a useful estate planning tool to do just that. With property planning, you can use a trust to express your wishes and instructions, avoid probate, help to minimize taxes, maintain harmony in your family, ensure a legacy for your loved ones, and keep your affairs private and out of the court system. A trust is simply a legal arrangement to care for property and is usually expressed through a written document. It requires that someone owning property transfers that property to a “trustee” who cares for the property on behalf of a “beneficiary.” In the typical case, you or your spouse act as both “trustee” and “beneficiary,” meaning that you care for and manage your property for your own benefit.  After you're gone, or in the event that you were to become unable to care for your own property, whether through accident, illness or aging, then someone who you have designated takes over as trustee. On yo

The Feds rising rates might be a good thing for all of us!

  The Feds raising rates might be a good thing for all of us! Today the Fed moved the Fed Funds rate up by 0.50%, which is the second increase this year.  In March they increased it by 0.25%.  The expectation going into the rest of the year is that the Fed Funds rate will continue to move up until it has met its goal of containing inflation pressures. Whenever the Feds increase or decrease the overnight rate, we receive an influx of inquiries for mortgage refinances and purchases.   Today I wanted to explain the relationship between the Fed Funds rate and mortgage rates.   One of the biggest misconceptions is that when the Fed Funds rate goes up, mortgage rates will go up.   And when the Fed Funds rate goes down, mortgage rates will go down.   I do admit that sometimes it does happen that way, but in many cases, it is pure coincidence.   Truth be told that there is no direct correlation between the two.   I think the first thing to understand is what controls mortgage rates.