Zeus Fun Factoids In December 2011, the average monthly payment on a 30 year mortgage in Houston, Texas for principal and interest was $1,046 which is down 9% year over year.
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Zeus Fun Factoids HOMEOWNERSHIP BEATS RENTING IN 74 PERCENT OF MAJOR
Trulia Releases Summer Rent vs. Buy Index, Revealing Housing Market Rebound in
“Many aspiring homeowners are on the fence about renting and buying in today’s market. Should they take advantage of falling home prices and low borrowing costs, or should they continue to rent until the economy stabilizes?” said Ken Shuman, Head of Communications at Trulia. “Price alone should never be the sole factor in deciding to purchase a home. Instead, buyers should first ask themselves if they plan to live in the home for at least seven-to-10 years, could make monthly payments on the house, and have enough cash in the bank for a down payment and an additional six to eight months worth of mortgage payments. If you can answer ‘yes’ to each of these questions, then the cost of buying a home definitely outweighs renting in most cities.” Houston mortgage loans at Zeus Mortgage is a great place to start. With the lowest interest rate on home loan mortgage refinances and incredible first time home buyer mortgage loan programs.
• Lower your mortgage payment
• Prevent your existing payment from rising
• Combine your first and second into one low payment
• Payoff credit cards and other debt
• Get cash from your home
• Get cash from your investment property
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Have you ever wondered how much prices in real estate have changed over the last 100 years? Okay, maybe not, but I thought you might find this gem helpful or at least entertaining. This is a flyer for a home for sale in 1910. This flyer is courtesy of the Houston Fire Museum and shows the cost of building a 6 bedroom house in Houston over a century ago only ran you about $495. Yes, that is four hundred and ninety five dollars. Today's median cost of a new home is around $250,000 depending on who you ask. That's some appreciation... or is it? One thing is for sure, mortgage financing is completely differently today compared to how it was 100 years ago. What you and I regard as “normal” in Houston mortgage programs is completely different since the introduction of the New Deal by President Franklin D. Roosevelt. Programs like Houston FHA mortgage, VA loans, Jumbo and self-employed Super Jumbo loans were non-existent prior to the New Deal. In fact, refinances or cash-outs mortgages or home equity loans were considered lowbrow activities.
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Prior to the New Deal by FDR, only 4 out of 10 Americans/Houstonians/Texans owned a home. Today the most popular mortgage amortization or term is 30 years, but at the turn of the 20th century 5 and 10 year mortgages were the standard. What about down payments? Well, prior to the New Deal, families had to put down 80% and finance the remaining 20% over the next 5 to 10 years at a national average of 8%. Yes, I said it right... you had to put 80% down!!!!
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Okay, well that's my best attempt at a history lesson for today.
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Enjoy the photo!
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Steven Kaufman
President of Zeus Mortgage
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“Helping our Older Generation” - A topic provided to me by Greer Boyce with Fox News.
How do you help the senior in your life who owns real estate?
This topic is something I like to call “Seniornomics”. The economic impact of many common financial decisions is very different for seniors than a majority of the population.
Here are some of my key thoughts:
First, determine the current situation (e.g., is there an outstanding mortgage, can they afford it, do they need additional income)
Second, determine the best case scenario for the future (e.g., the home is out of the parents name for estate tax purposes, cash in the home is used to care for them as they age)
Third, bridge the gap between where you are today and where you want to be in the future by making AND executing plans. This always beats acting in reaction to some triggering event that will likely be filled with lots of emotion.
Some key questions that will determine how you proceed are:
o Is there a potential estate tax issue? (the current exemption amount is 3.5M)
o Will your parent possibly move back into the home?
o Can your parent pay for the assisted living and the home with their current income?
o Are there multiple children involved? (this often creates conflict so its best to workout a plan of action now versus waiting until emotions are very hot)
Reverse Mortgages Hyperbole. Reverse Mortgage are often seen as the “easy” answer to many senior’s financial problems. The most important fact about Reverse Mortgages is that they were designed as a “last resort” for seniors who had troubled credit or income issues that traditional alternatives could not overcome. It’s often the “first resort” many misinformed families take and the risks are serious, expensive, and difficult to reverse.
Below is a video of this presenatation for the local Fox affiliate. Zeus Mortgage Complaints & Reviews (Yahoo)(Google)