A WARM WELCOME from Dan Heon at ProLink
Mortgage & Financial Corp.
Mortgage News provides you with
information you need to keep your business profitable and enjoyable.
Mortgage News will be published in
concise monthly editions offering information, suggestions, tips and
opportunities at-a-glance to investors.
Season’s
Greetings Everyone!
It hardly seems possible that we are at the end of yet another
year. Sometimes I just do not know
where the time goes!
I enjoyed hearing back from some of you folks after
sending out the November newsletter.
Your feedback and comments help me to provide you with information and
suggestions that will be integral to your success and the success of this
Newsletter.
I would also like to thank Mike Lathigee and the
Freedom Investment Club.
You put on a powerful due diligence workshop last
week. Everyone should know the stuff you teach before they Invest their Hard
Earned Money.
I wanted to talk this month about the
“ Rule of 72. “ (Investing Terms101)
As you probably know, Real Estate is the best way to
compound your money. Rule of 72
is a fast and easy way to calculate how long it takes an amount of money to
double depending on the interest rate.
The way it works is this:
Divide the whole number of the interest rate or
return into 72. The result is how long
it takes for that amount to double in value.
For example, if you wanted to find out how long it would take a
$10,000.00 investment to double if you could earn a 6% return your formula
would be like this: 76 divided by 6 =
12. This means it would take 12 years
for the $10,000 to double at 6%.
Real Estate Investors figure their rate of return
before buying a property and will usually want at least 18% return on their
investment. This is not an unreasonable
expectation. This type of return is
common by investing in other instruments such as discount mortgages, tax
certificates(US only), creating notes in houses or becoming an equity
lender. 72 divided by 18 = 4. At 18% it would take just 4 years to double
your money.
Now you do the math! Instead of having $20,000 at the end of 12 years like the individual
investing at 6%, your value over 12 years at 18% would make your money worth
not $20,000 but $86,000! People who invest in Mutual Funds today at
2-3% will see their money double in just over 20 years. For the same time period, the person
investing $10,000 at 18% would have earned over $320,000 after 20 years.
If you are really interested check out this link and
read why mathematically this formula works. It really shows you the power of
compound interest.
http://www.moneychimp.com/features/rule72.htm
The Rule of 72 assumes your investments are
tax-deferred and earning compound interest.
When you do your future financial planning always
keep this rule in the back of your mind. It is a good rule of thumb to see how
hard your money is working. After all,
our goal is to have our money working harder for us than we do for it. (like
relaxing on the beach in Costa Rica)
Interest Rate Information: ( News Flash )
U.S. Federal Reserve holds key rate unchanged at 41-year low of 1.25 per cent
December 11, 2002
WASHINGTON (AP) - The U.S. Federal Reserve left a key interest rate unchanged
at a 41-year low Tuesday, giving
consumers and businesses more time to take advantage of rock-bottom borrowing
costs to help the economy snap out of its listless state.
(Dec.12,
2002)
Today’s
ProLink Interest Rates on First Mortgages are as follows:
Rates
are subject to change without notice.
|
Description |
Best
Rate |
|
5 Year
Variable |
1.99
% |
|
6 Month Closed |
4.45
% |
|
1 Year
Closed |
3.80
% |
|
2 Year
Closed |
4.50
% |
|
3 Year
Closed |
4.65
% |
|
4 Year
Closed |
5.10
% |
|
5 Year
Closed |
5.38
% |
|
7 Year
Closed |
5.95
% |
|
10 Year
Closed |
6.09
% |
|
15 Year
Closed |
6.79
% |
|
18 Year
Closed |
6.85
% |
|
25 Year
Closed |
7.05
% |
Regards,
Dan Heon
ProLink Mortgage & Financial Corp.
Phone:
403-257-1801
Fax:
403-206-7622
Toll Free:
1-888-281-0111
Email: ProLink@telus.net
P.S. - We had lots of folks that forwarded our
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them our “Mortgage News”.
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