Gulf Life Now

You just received a notice from your mortgage company that your payment will increase by $300 per month. Why, what does this mean? Should I pay the shortage now or overtime? What is a shortage anyway? 

New buyers may just be receiving their first escrow analysis and don't understand how the mortgage company calculates their payment. Shortages in the escrow account can be handled in various ways, we provide some suggestions here.

This podcast explains what an escrow analysis is and how it works.  Please visit our website to learn more about this and similar topics.    LoganAndersonllc.com 

Compare a 1954 build 1,344 sq ft tract house in Garden Grove, CA to a 2022 built 1,992 sq ft house in Ocean Springs, MS. The Garden Grove house just sold for $920,000. The Ocean Springs house is available at $235,000 (est). Save 72% on housing, move to the Mississippi Gulf Coast Now while this property is available.

There are more things to compare than just price. How about the fact that the Ocean Springs house is new and larger by 648 square feet. These homes are built-in developments with similar-sized lots. Both homes have access to beaches, the Ocean Springs house is closer. 

Both homes are located near shopping and restaurants. Children attend class in person in Ocean Springs and have done so all but a few weeks at the start of COVID. 
The difference in house prices is so large that you could buy two houses in Ocean Springs with money left over for the price of the Garden Grove house. Many people in Orange County and other high-cost states have so much equity in their homes that they could come to Ocean Springs and pay cash for their new home and live on the remainder. 

I know, I lived in California where people consider all of that equity in their homes. If you sell your home you need to buy another and if it's in the same area, what's the point. Other homes will cost more. This is your chance to make a lifestyle change. Let's assume that you have at least $200,000 equity in your $950,000 valued home. 
Buy the home discussed above by putting down 20% of the cost, a total of $47,000. The total required to close including closing costs is about $53,000 (the seller may offer assistance). Remember you have $200,000 after selling your California home. That leaves $147,000 to invest for future income.

Monthly payment compared

Your principal and interest payment on a current balance of about $693,000 on your California home are about $2,921. Add insurance of about $125 per month and taxes (1.1% of value) $600 per month. The total payment is about $3,646.

The P&I for your new home is $898 per month, add taxes and insurance $490 per month and your total payment would be about $1,388 per month. A savings of $2,258 per month, and $27.096 per year. 

Don't forget the income (remainder after deducting buying costs from your $200,000 profit on your Garden Grove house) on your $147,000 @ 10% interest about $1.025 per month. Now add your house savings of $2,558 and your investment income of $1,225 for a total turnaround from your current situation of $3,783. Just a bit more than you are currently paying for your Garden Grove mortgage.
Inflation is taking a toll on everyone. Prices are rising for everything. House prices are not immune as building costs have increased. A brewing problem in California is that prices have gone up so much so fast that incomes have not been able to keep up. The day of adjustments is coming. 

I was living in Southern California during the last housing downturn. The reasons are different this time, no liar loans or sub-prime loans. Homeowners in high-cost areas are nearing a tipping point on pricing. Mississippi Gulf Coast pricing has gone up as well but not at the same rate as California. The area has a shortage of properties as does California. 

Should you consider a change, you should do so soon, very soon. Of course, the house you live in will be the same when it's worth 20% less but if you decide to move in a few years you will have less leverage.

Please visit the LoganAndersonllc.com website to read more about this topic.  Photos and links are available on our blog page with the same title. 

Unlike the crowded beaches of Florida and Alabama, come to the Mississippi Gulf Coast and rent a vacation house.  Warm temperatures compared to northern states, generally clear skies, and miles of beaches.

Go fishing, wakeboarding, parasailing, or just hang out at the fire pit with friends at the beach.  We have 12 casinos to provide entertainment and great food.   The lines at restaurants are shorter than at other beach destinations.  We have little traffic so you won't spend your vacation stuck in traffic.

What COVID?  No place of business requires masks.  Beaches are open 24/7.  Plan ahead for your spring break along the Mississippi Gulf Coast at one of many vacation rental properties. 

Please read more about the Mississippi Gulf Coast on our website:  LoganAndersonllc.com  

A most often asked question is, "should I pay off my mortgage before I retire?" or at retirement or just after I retire. Let's talk about financial security through the use of other people's money, specifically your mortgage. "OPM", is the term used by many to describe "credit". A dirty word for many including Dave Ramsey. 

Our focus here is primarily on your mortgage and why you may or may not want to pay it off before, at, or after retirement. The discussion includes credit in general and why it's a good thing if managed properly.

Please go to LoganAndersonllc.com to read more about this and other topics at Logan-Anderson, Gulf Coastal Realtors website.  

This question "Is Ocean Springs, Mississippi a good place to live?" is asked with some frequency on Google. My experience having relocated from California is a resounding "YES". There are so many great qualities to this small city on the Mississippi Gulf Coast, It's hard to know where to begin. For this reason, I have created a podcast to explain in my own voice why Ocean Springs is a good place to live.

I have written about the Mississippi Gulf Coast on RetireCoast.Com many times. Please read our blog articles on the topic and listen to more of our podcasts. Try this article "Why I decided to retire in Ocean Springs Mississippi".

I just retired, my income dropped, I want to buy a house now and I have good credit. Good credit is not enough. You may not qualify on the ratio issue, your total income from retirement is not more than 50% of your monthly obligations. This "ratio" thing gets many people who otherwise are good credit risks.

This podcast explains a potential work around of the debt-to-income ratio issue.  At the same time as it may be a solution, it can be a great benefit. 

Gulf Life Now is a service of Logan-Anderson, Gulf Coastal Realtors located on the Mississippi
Gulf Coast.  Please visit our website for more podcasts and blog articles about this and similar topics.  LoganAndersonLLC.Com

2018 happened! Revisions to the tax law reduced the amount of taxes you have to pay resulting in a reduction in the amount deducted from your paycheck. Our podcast covers the changes and how they continue to have a positive effect on most Americans.

Logan-Anderson, Gulf Coastal Realtors is pleased to present this podcast. Please visit our website for more podcasts and blog articles about real estate, finances, and our beautiful Mississippi Gulf Coast. 

People should enjoy their life taking advantage of opportunities to have fun.  Life on the Mississippi Gulf Coast is vibrant.  People attend events, fish, go boating, attend art shows, and more.  There are activities all year along the Mississippi Gulf Coast which make life much more interesting.  Something to look forward to, a reason to leave the house. 

Logan-Anderson, Gulf Coastal Realtors is the sponsor of this Podcast.  If you want to LIVE somewhere and have fun, the Mississippi Gulf Coast is the place to be.  Logan-Anderson can help you find a new home in the most affordable state in the U.S. 

You are considering buying an investment property. Perhaps a residential rental house.  It looks simple but the most successful investors know there are some complexities.  Learning how to invest in residential rental and other income properties is critical to your success.  This podcast covers the essentials to give you a start.
  Our website contains some blog articles and we recommend that you visit the Keyladder.com website for some in-depth articles about the various elements involved in successful investing.

William Anderson is a real estate investment expert, he has invested in dozens of properties in several states.  Mr. Anderson is a Real Estate Broker and partner in Logan-Anderson, Gulf Coastal Realtors on the Mississippi Gulf Coast.  Contact him at 228-215-3234 or [email protected].

PMI was created for the lender's benefit, not yours.  The second is that your property achieves more than 20% equity through appreciation or principal payments get rid of it.  This podcast discusses PMI and MIP insurance for both Conventional and FHA mortgages. 

UPDATE:  Please follow me through the process to remove PMI from a property.  It's been a challenge and not a simple thing to do.  As we go through the process, we will update this podcast.   

Please listen to episode two to learn more about our progress with getting rid of PMI

Visit our website LoganAndersonllc.com to read our blog articles on this topic and others.