Questions…always a good thing. I found a new resource….

This last week I was in an email conversation with a client. It was a great back and forth email regarding a particular strategy that I suggested to him that was outside his comfort level. It was an excellent exchange of questions and what if scenarios, that was most enjoyable for me in a sense that it stretched my thinking and made me look at my strategies from all angles. It was fun and it actually made me consider things in a different light, expanded my look and made me go seek even more information not only to give a bigger picture and put things in perspective for my client but for myself in my financial decisions. That is what you call continuing education, if no one questions what is being done, then the learning stops for everyone.
So you may ask, well what was this exchange about, it was about paying down a mortgage vs an equity line? So I wrote that client back the following. That exchange prompted me to actually go out and look for projections on the said rates. At the website, and am now a member so that I can get 3 year forward forecasts/trends. Of course this can all change, and will change month by month. As you can see I started the first one but will continue to add tabs as each month it gets updated. (I created a table and graph comparing the rates in question). It will be interesting to continue tracking, with each additional month and to see how they are changing against the forecasts. When I did this I was expecting my Mortgage ( US treasury +2.75), to intersect with 30 year fixed mortgage rates, and according to forecasts they won’t intersect, not in this time frame, each month we will be adding 1 more month of data so we will continue to watch. Meanwhile, by keeping the lower rates I can pay down my mortgage down faster with the lower rates. So when/if the time comes for me to re-fi(when the trends for prime and US treasury exceed 30 yr fixed) it won’t be as big of an amount to re-fi. With this tool we will have a 3 year window to act on anything coming up. Pretty cool stuff.
So this will give you perspective and heads up as to where rates are and will be going. If you would like, I can email this to you each month after I complete it.

I have always been one to ask a zillion questions, so I respect others that do the same, since it educates all that are involved with the questioning process. Without my client questioning strategies, I wouldn’t have saught out this great tool for watching financial trends. So when that child, co-worker, client, friend is asking the questions, enjoy the process it is a win/win for all involved. And if you are one who doesn’t ask questions, try it, engage yourself in the process, remember the only stupid questions are those that aren’t asked.

~ by debt2dreams on December 21, 2008.

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