equity management: Money Merge Accounts: More Misleading Information - 05/20/09 10:12 AM
It is hard to believe that I have been talking about these programs for more than two years now, bringing to light the misleading, even false, information presented by the Money Merge Account sellers. Don’t get me wrong, these bits of misinformation spread out on occasion to other mortgage acceleration product sellers, but the United First Financial (UFF) agents are the worst offenders from what I have seen thus far. The company even encouraged the presentation of skewed realities at the beginning, and I suspect they still do in a “non-public” fashion as they allow agents to continue spreading the crap, … (3 comments)
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equity management: "Would you like a side of hyper-inflation with your job loss and reduced-fat retirement?" - 02/24/09 09:59 AM
That is the question our government would be asking you if they were your waiter. While I was doing this morning's mortgage market update, that thought came to mind as a great way to sarcastically explain the government's actions thus far.
With job losses mounting, the government claims they need to force through another stimulus package which creates more jobs, government jobs that is. And they did exactly that, well not exactly as the amount of jobs they actually will create versus what they claim will not equal each other, and it will be inversely proportional to how much the cost … (7 comments)
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equity management: The High Cost of Waiting for Lower Mortgage Rates - 02/13/09 03:33 PM
Many of you reading this have been waiting for those government promised mortgage rates of 4.5%, or even lower. Do you realize those rates may never come in actuality? Can you comprehend how much money you are wasting by not refinancing or outright purchasing a property right now?
First, let's look at those of you waiting to refinance. Since rates are currently around 5% and it usually doesn't make sense to refinance with less than a 1% drop in rate, let's put together a scenario. You have a $200,000 loan at 6%, with monthly mortgage payments (not including taxes and insurance) … (3 comments)
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equity management: Your Mortgage: Liability or Asset? - 01/30/09 05:40 PM
Most of you reading this would answer the above question quickly and label your mortgage as a liability. After all, it is a debt, isn't it? But if there was more to it than that, or even if your mortgage could become one of your greatest assets. You may think I am crazy, but think about the concept for a while, then read on.
Traditional thinking places the mortgage clearly as a liability, a debt that should be paid off. Some even think that financial freedom cannot occur with a mortgage looming overhead, possibly because of the monthly payment required to … (2 comments)
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equity management: Money Merge Accounts: Abusing Einstein’s Quotes - 01/28/09 09:27 AM
I have seen this repeatedly in marketing materials from United First Financial (UFirst Financial/UFF) and their agents, another example of the misleading material provided to sell their product, the Money Merge account (MMA). Throughout the history of this company, they have provided nothing but false and/or misleading statements into their advertisements, many of which I have already exposed here and in my previous ActiveRain blogging.
Now, let's look at another one, this time using a quote by one of the foremost figures of intelligence in history, Albert Einstein. The quote that they use is:
"Insanity means doing the same thing over … (38 comments)
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equity management: Florida Mortgage Rates Hit 4.5% - 12/05/08 09:07 AM
Florida Mortgage Rates have reached the lowest they have ever been on a 30-year fixed rate mortgage, as mortgage rates have dipped to just 4.5%, falling below even the lowest rates seen in 2003. Now, more than ever, homeowners should be rushing to refinance or purchase homes as these rates may never be seen again.
OK, hopefully you have already realized that the above paragraph isn’t true, at least not yet. However, the lunacy of our Treasury Secretary (Henry Paulson) and Federal Reserve chief (Ben Bernanke) may yet make that paragraph a reality. Treasury Secretary Paulson openly admitted he wants mortgage … (10 comments)
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equity management: An "Obama Nation" Brings New Life to Mortgage Planning - 11/05/08 01:07 PM
Ever notice how Obamanation, a term being thrown around a lot, sounds eerily similar to abomination? OK, we won't dwell on that, but let's look at Barack Obama's past and how his actions speak for him more than his words. Then we will relate them to how that equates to an increased need for using a genuine mortgage planner.
Barack Obama promised tax cuts to "95% of Americans", and then started defining that as those making less than $250,000. If you could cut 'BS' with a knife, his words allow for plenty of cutting as it didn't take long before that … (4 comments)
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equity management: The Financial Crisis, Your Emotions, and Your Money - 10/06/08 09:34 AM
These days, all you have to do is read the paper or turn on your TV and you will think that your money, especially your investments, are rapidly becoming worthless. Even many of the so-called financial gurus, such as Suze Orman, are telling you to get out of the markets, especially if you "feel" afraid of where they might be headed. Before you act on your emotions, think about it with your emotions removed.
Leaving your emotions out of your decision making, especially when it comes to finances, is very hard to do. However, making financial decisions using your emotions virtually … (4 comments)
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equity management: Emotions and Finances (Including Mortgages) Should Not be Mixed - 08/25/08 03:30 PM
Hopefully, you have not learned this rule the hard way. The bottom line is whenever you make any financial decisions allowing your emotions to enter into those decisions, you will lose money, and usually lots of it.
I know that all of you are likely emotional about your finances. Those of you whom have been divorced were likely separated due to your emotions over your finances. The problem is that emotions cloud your judgement and lead to mistakes, and that fact reigns true in your finances.
If you are currently looking at the stock market being down for a long period … (3 comments)
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equity management: Just How Hard Is It to Make Money? - 06/06/08 04:35 PM
You know I am an advocate of investing versus paying off your mortgage, at least until you have your entire financial and investment plans fulfilled. You know that the reasons come down to liquidity, safety and rate of return, the latter being the point I am going to target today.
Most Americans, and especially those falling prey to the glamour of a paid off mortgage through mortgage acceleration programs such as the Money Merge AccountTM from United First Financial, do not realize the true cost of their financial decisions. They fail to realize that Everything is 100% Financed!!! Yes, even when … (4 comments)
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equity management: Mortgage Acceleration: Is the Latest Fad Right for You? - 04/19/08 01:37 PM
Many of you know that I contribute over at Agent Genius, and that is what this particular post is about. I added a post with the above title over at AG and rather than repeating the same content, I decided to just inform you about it and supply this link. Take a moment and go read it, you find it worthwhile.
… (5 comments)
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equity management: Mortgage Transparency Kills Mortgage Service: Will the Mortgage Industry's Commoditization Follow That of the Airlines? - 04/17/08 12:55 PM
The latest move in our industry, fueled further by its recent implosion, is that of transparency in the mortgage transaction. For starters, I am all for that, though you may not feel that way after reading this. Why? Because of what transparency encourages.
To truly understand what I am getting to, let's look at what has happened to the airlines in the last 30 years or so. Some of you are old enough to remember the "glamour" that surrounded airline travel. In fact, families would save for years just to afford to take a vacation that included air travel.
However, deregulation took over … (30 comments)
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equity management: This is a "Be Careful What You Wish For" Post - 12/04/07 09:37 PM
Recently, I began asking for more testimonials, something I usually do not do as I would like to think I would receive them when my services warranted. Then I read something, somewhere that showed statistically that if you do not ask, you will not receive. Well, being the numbers kind of guy I am, I realized quickly I needed to start asking.
Well, I have not mastered the art of asking for testimonials, but decided to ask one of the many non-clients that have come to me for advice to provide a testimonial if he chose to. To say I was blown … (9 comments)
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equity management: Really Simple Currency Investing Creates More US Money - 11/29/07 11:17 AM
Ok, as promised, here is what would have happened with your $10,000 investment when converted back to today's USD during the same time as my previous post's housing comparison.
For a quick overview, this chart is based on you simply converting $10,000 USD to another currency and switching it back to USD today. There are numerous ways to add additional rates of return (safely) in those other currencies and you would be even further ahead. It is also not adjusted for inflation.
As you can see, a fairly good hedge against the devaluing of the USD, and your home is by investing … (6 comments)
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equity management: Would You Rather Spend $6 to Save $4 or Spend $4 to Earn $6? - 11/28/07 01:57 PM
When you look at these numbers, it doesn't seem to really matter, does it? After all it is only a difference of a couple of dollars. Yet, look closer and you will see that in the first scenario you are losing $2 while in the second scenario you are gaining $2. OK, still small potatoes, but now it is $4 (a fancy cup of coffee at Starbuck's).
Think it is still no big deal?
OK, let's multiply that by 1,000. Still think it is small potatoes?
Now, let's compound the problem over 30 years. The difference clearly gets magnified over time. … (5 comments)
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equity management: Is Your "Lost Home Equity" Working for You? - 09/18/07 11:22 AM
I am sure you are asking yourself, "what the heck is this guy talking about?" Well, if you have been focusing on paying off your mortgage, you probably have no clue. Here is what I am talking about.
You may have missed this stat recently released...US 2Q Homeowner's Equity Falls to 13 Year Low. Surprised? You shouldn't be. With all of the recent gains in real estate over the last several years, many homeowners have rushed to cash in some of that equity. Most, unfortunately, went out and spent it or otherwise failed to receive the benefits of proper utilization of that … (0 comments)
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equity management: Were Americans Really Saving Less Last Year? - 07/31/07 11:42 AM
You may have missed the report that came out this morning and do not realize there was a revision to last year's analysis. The Bureau of Economic Analysis (BEA), which gives out accounts of personal savings rates, made several upward revision's in the personal savings rates for 2004, 2005 and 2006.
In 2004, the revisions were not as dramatic as for 2005 and 2006, but were good to see nonetheless. 2004's revision showed a slight change in the savings rate to 2.1%, up from 2.0%. More impressively, 2005's revision to the personal savings rate rose from negative .4% up to .5%. However, the … (2 comments)
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equity management: How to Borrow Money at 4.875% and Fairly Conservatively Earn up to 12.0% - 07/27/07 11:35 PM
Opponents of proper equity management, as well as those who push mortgage acceleration programs, argue about the ability to earn even 6% tax-free in conservative investments. I will show you how spreading your horizons and investing in CDs based on World Currencies can do that and more, with fairly little risk if you know what you are doing.
I have talked a little about the Icelandic Krona and how a 3-month CD based on that currency is yielding over 12%. Since CDs are about as conservative an investment as they come, I doubt many would argue about using this as a … (13 comments)
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equity management: Money Merge Accounts: Are They Really Worth It (Another Case) - 07/19/07 04:14 PM
A UFF agent placed the following scenario of a client he was putting into a Money Merge Account on one of my blog posts...
The client had just closed on a $244,000 mortgage at 6.875% Fixed for 30 years, which creates a $1,602.91 monthly payment since it is fully amortizing. I wish I had talked with this client before he closed as I could have saved him thousands. The client makes $4,616 per month, of which $1,000 is said to be discretionary.
The UFF agent goes on to provide a fairly accurate representation of what the client could do on his own versus … (17 comments)
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equity management: Are You Responsible for the Subprime Mortgage Debacle? - 07/11/07 07:52 PM
Every day, the media talks about the problems in the hosuing market. Most of the talk centers around the loss of homes due to "exotic mortgages", dishonest lenders, among others. People who are marginal borrowers, those we call the subprime market, are often the subjects of the stories. They will also likely be the ones most affected by the changes that have already occurred as well as those in the pipeline. As is typical, the changes implemented most affect the ones who can least afford it.
From the point of view of one who recommends using their home to build wealth, I … (11 comments)
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