mortgage planning: Will the Federal Reserve Pay You to Borrow Money? - 04/29/09 06:05 AM
As strange as that sounds, many moons ago I mentioned that the Fed, led by Ben Bernanke, would love nothing more than to pay people to borrow money and a study released yesterday proves I was right. The fact is that Big Ben wants inflation so bad that he would be willing to pay others to borrow money if he could actually do that.
The study that was released yesterday morning stated that the Federal Open Market Committee (FOMC) was presented with the suggestion that the optimal interest rate would be –5%. That’s right, supposedly the best interest rate would be … (6 comments)
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mortgage planning: "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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mortgage planning: Inflation: Hidden Giant Waiting to Drive Mortgage Rates Higher? - 02/21/09 07:13 PM
On Friday, we saw the release of the CPI (Consumer Price Index) and it showed inflation to be tame overall, actually falling into Bernanke's concerns, deflation. Even when you look at the Core CPI, removing volatile food and energy from the equation, you still only see a small inflationary rate over the last year, just 1.7%. But is the inflation rate really that low, or is it that the CPI is not showing reality, at least not yet?
First off, CPI can be manipulated somewhat, so let's just look at what we buy in the supermarkets everyday. Everywhere you look, if … (13 comments)
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mortgage planning: 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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mortgage planning: 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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mortgage planning: 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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mortgage planning: 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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mortgage planning: 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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mortgage planning: Are You Fearing Today's Markets? - 10/10/08 11:09 AM
The "F-bomb" is all over the internet and even being played up by the media today. No, I am not talking about that one, rather the "FEAR" factor. You cannot hardly turn on the TV, radio, or even computer without getting hit by news that the DOW is down over 700 points for the 8th straight day. CNBC, CNN, ABC, CBS, blogs, etc. all are adding to that fear factor and even the so-called financial gurus like Suze Orman are playing off those fears, telling everyone that "cannot sleep at night" to get out of the markets.
And then we wonder … (3 comments)
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mortgage planning: 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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mortgage planning: It is With Great Sadness That I am Writing This - 09/17/08 08:21 AM
If you have been reading the Florida Mortgage Report for a while, you undoubtedly have read some of the posts about home equity and how easily it can be wiped out in a disaster. Every year as hurricane season approaches, I inform readers to make sure their home equity is prepared and protected, something that is not on any other emergency preparedness list out there.
Yesterday, just prior to jumping on the airplane to return to Miami, Florida, I learned that a Captain I flew with last month lost his home to Hurricane Ike. His home WAS located in Galveston, Texas. … (3 comments)
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mortgage planning: 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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mortgage planning: E-Book on the Economy and Mortgage Rates Coming - 06/07/08 07:51 AM
I don't normally throw out advertising in this blog, but I wanted to get this news out...
In the next month or so, I am going to finish a book on how the economy affects mortgages rates. I believe every mortgage professional, and any other professional in the industry who wants to show added value, needs to know how economic data, events, etc. impact mortgage rates and why it is so important to have a constant watch on them, or at least work with a mortgage professional who accesses real-time mortgage bond quotes.
The book will be highlighting how various economic … (5 comments)
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mortgage planning: 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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mortgage planning: 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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mortgage planning: Money Merge Accounts: My Sincerest Apologies to Those With MMAs - 01/15/08 10:24 AM
I have some regret that I have to admit to about these programs. I feel like I failed consumers by allowing them to be misled for far too long. The truth of the matter is that I have done some more calculations, many of which I should have done back before I even posted my first blog about the subject way back in February 2007. The bottom line is that I have now done those calculations and it is time to let the truth out.
Once again, I have simply taken the information from United First Financial's own presentation on their Money … (19 comments)
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mortgage planning: 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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mortgage planning: 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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mortgage planning: 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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mortgage planning: Want to Meet Me? Here's Your Next Chance... - 09/14/07 11:48 AM
As many of you know, it is very difficult to actually meet me in person. I run a very busy schedule, both mortgages and flying, and "do not get out much". So, if you really want to meet me in person, here is your next opportunity...
I will be speaking in Tampa, conducting 2 seminars daily, on September 26th and 27th. The morning seminars will be Flipping Houses 101 and the afternoon seminar will be Building Your Million Dollar Nest Egg with Your Mortgage. If you want, come on out and listen, or at least stop by to say hello. I would really like to … (4 comments)
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