May 2017

Written by Robert H. Ruth

Here we are at the height of the Spring home buying season and the media is abuzz with news about the Real Estate market surging.  In many locations across the country, a shortage of inventory has fueled a seller’s market with the presence of bidding wars for properties and pricing rising rapidly.  

Much of the focus in the media has been on trying to decipher the intentions of the millennial generation and whether they will buy homes or continue to rent. And quite frankly, the idea of figuring out what an entire generation will do is complete nonsense. Millennials will buy when it makes sense for them to do so, not before.  

Regardless of whether they buy now, or in the future, there are 5 things about home

Written by Robert H. Ruth

This is a BIG Deal for Homebuyers in General, Millennial Buyers in Particular

Last week I provided an overview of the scope of the student loan debt situation in America and nowhere is the situation as impactful as when someone with student debt tries to purchase a home. This issue alone has held the housing market back from a truly significant rebound, and is putting the millennial generation behind their parent’s generation in creating wealth for their futures.  

In a recent announcement, Fannie Mae has publicly stated that they intend to be part of the solution by “implementing new policies to help borrowers qualify for a home loan and reduce student debt.”

Here is a link to the official press release by

Written by Robert H. Ruth

The financial burden faced by the millennial generation is simply staggering.  Here are a few statistics that portray the breadth of the problem, which is now the second highest consumer debt category behind only mortgage indebtedness, and higher than both credit cards and auto loans:

• 44.2 Million Americans have student loan debt, or 7 out of every 10 college graduates
• The average indebtedness of the Class of 2016 was $37,172
• More than 42 million people have student loan debt of  $100,000 or less
• Over 2 million borrowers had student loan debt greater than $100,000, with 20% of that total (415,000 people) have student loan debt greater than $200,000
• The largest concentration of student loan debt is

Written by Robert H. Ruth

“ Sometimes the path you’re on is not as important as the direction you're heading." - Kevin Smith

In the real estate industry, like many other industries, knowledge is a highly valued commodity.  The generally accepted thinking is that the more time you have in the business, the more knowledge you have amassed, and that cumulative knowledge can be used for the benefit of your clients. This is certainly true.

It is also true that over time you have been a participant in more transactions which gives you a wealth of experience in dealing with a variety of situations. This experience and situational awareness that can only be developed over time can be of tremendous value to clients.

Our industry then, is one

Written by Robert H. Ruth

In my last post, I gave an overview explaining how Adjustable Rate Mortgages are priced in the marketplace, and compared the pricing function to one used in retailing. This post will explore the 3 main types of ARM loans, how the rates can change over time, and what the impact of rate changes have on a borrower’s monthly payments.

Borrowers have 3 ARM Choices

Basically, there are 3 main variations of an ARM that are widely available for homebuyers. They are the 5/1 , 7/1, and 10/1 ARM.  These loans are known as “hybrid” Adjustable Rate Mortgages.

• Just as a hybrid automobile gets great gas mileage because it has the feature of electric assisted power combined with gasoline power, a hybrid ARM has the

Written by Robert H. Ruth

The Basics of Adjustable Rate Mortgages

Most buyers understand the basics of a fixed rate mortgage…there isn’t much to explain. The rate and the payment are fixed…they never change…You pay the same amount for a specific period of time and then the loan is paid off.  It’s a pretty straightforward concept.

But there is another type of mortgage, one that does not have fixed rates that never change. It is called an Adjustable Rate Mortgage, or ARM. The purpose of this article is to explain the basics of ARM loans so you will have a fundamental concept of how they work.  However, before we explain ARM loans, it is helpful to explain how everyday goods are sold in the marketplace.

Say you go into a large discount