Saturday, December 26, 2020

Student Loans Debt and Homeownership

Hi. Like most people, I didn't have money saved for college and it took me until the end of my college experience to actually start paying back my student loans. I graduated with about $64,000 in student loan debt. Ouch! Is the appropriate term. I would advise anyone who is looking to get a college education to not make a costly decision as I did. Here's why; not only is that an insane amount of debt but student loan debt whether it's through the department of education or a Federal Perkins loan provided through the school - it accrues interest. Starting at 2.75% ranging all the way up to 5% if it's a Federal Perkins loan.

When it's all said in done because of interest a borrower may end up paying an additional $20,000-$30,000  in interest (interest - Debt accrued on top of debt for a duration of money lent) in addition to the original $64,000 taken out in student loan debt. Interest is and will always be an enemy of mine
. I don't want you to be in bondage to it either. It's a huge detriment to paying back any type of loan. It basically works against you diminishing the hard earn money that you've scheduled to go towards the principal.  There's usually some type of interest whenever you borrow money. Which makes sense from a lender's standpoint. The risk of not being paid and the generosity comes with terms and conditions. 

Here's my game plan to fight this mess I've made throughout my 4.5 years in Private college. I've place a time that I would like to be completely out of debt. For me, it was no later than 2023. That would put me at about 28 years old. Since I've made that decision and grasp that the less I pay towards my student loans, the more I actually pay for them in the long run. I've decided to pay more, happily! In the past year, nearly 75% of my income has gone towards my student loans. I couldn't pass up on the no-interest compounding due to pandemic. This has allowed more of my hard-earned money to go towards the principal of the loan. Allowing me to pay the loan off faster. In the last year, I've paid off $30,000 worth of student loans. My goal is to now be completely out of student loan debt by next year. I'm paying as much as possible while the interest payments are suspended. Saving me thousands in the long run.

Tuesday, December 8, 2020

How's the Sacramento Real Estate Market?

 Hi, I wanted to take some time to do an overview of Sacramento's real estate market. Sales have declined by 1.1% from the previous month. In comparison to last year sales are up 8.8%. Homes financed with Cash made up 9.5% of the market. Those stats slightly debunking the bay area myth, I say slightly because there's a good chance the buyer from the bay used cash mixed with a conventional loan to complete the purchase. Speaking of conventional loans, 68% of the buyers market in Sacramento are financing their purchase with an Conventional loan. Folling with FHA at 15% and VA making up 1.8%.

Prices continue to rise. The median home price went from $438,000 to $439,950, an increase from .4%. In comparison to 2019, home prices have increased by 14.3%. Supply and demand is the cause of the continuing rise of home prices. Inventory, the amount of homes for sale have decreased .3%. In comparison to 2019, there is a decrease of 45% of homes available for purchase. In other words there are 1,048 less homes for sales than it was this time last year. California gold rush has been reborn in Real Estate. 

The average days on market for homes listed has decreased from 18 days to 15 days. Of the total 1,695 sales completed during the month, 1,463 were on the market for 30 days or less.  95% of the homes sold 60 days or less. If your looking to buy a home you would have more options if you're looking below $200,000 or on the contrary above $750,000. If you or anyone you know are interested in selling they're home now would be a great time. Just make sure they contact me (916) 968-7159. 


Tavon Willis

DRE #02095751

(Source: Sacramento Association of Realtors)

Wednesday, December 2, 2020

Fear is Fuel

Fear, that ol' feeling that gives butterflies and causes you to sweat profusely. I'm looking to overcome, conqueror, or better yet use fear as an indicator to better my life. Fear comes from survival mechanisms that we were born with. Today our chances of being eaten by a predator as compared to when we were being preyed upon are much less likely to happen. Today we live in a safer environment, and Fear can be counterproductive to our goals. Yet, we still get nervous when we meet new people when there's a new adventure that awaits us or not knowing what the future holds for us. Fear as I come to realize maybe the most important thing to conquer in one's life. The Buddha says 'all of life is suffering", most people are causing their own internal suffering due to external influences that they cannot control.

I'm looking to use Fear as Fuel as indicated in the book written by Patrick Sweeney. Fear often points out the things which we need to take action towards. I've been putting off making a tough visit for about a week now. Not sure of what the outcome will be or if there will be danger being associated with it. Guess what, my body is telling me I need to handle that situation now or simply forget about it. I'm going to change my association with FEAR, I will turn it into arousal. Once fear is transformed from something that is associated with not knowingness or pain it can be used as an indicator for EXCITEMENT. 

It's a new life, a bold one that awaits you and I if we cultivate courage, love, and proper context. The only thoughts we produce should be that of action, solving what needs to solve, and planning what needs to be planned. If we leave it to our mind to solve it will result in saving us energy and protecting us from harm. The main problem with this solution is that it can cause us to lose sleep, stopping our immune system from recovering which weakens our defense to fight viruses or be at our best to provide value.

I've always respected those who've cultivated fearlessness, I think it's time to transcend to a human being who is just 'being'.