Tips And Other Useful Ideas

Improving Your Gas Mileage with Water4Gas? Does It Work or Is It a Scam?

2008-07-02T12:08:18Z

I've read several posts on ActiveRain and elsewhere on the internet and there seem to be no definitive answers as to whether this technology works. One of the main marketers for this product is a man called Ozzie Freedom and his company is Water4Gas.com located in Australia.

There is quite a considerable amount of information on the internet but being a skeptic myself it's hard to draw any conclusions without actually installing the device.

I'm sure many of you spend more money for gas each month than I do but wouldn't it be nice to save a few hundred dollars a month?

Here is a recent post I found while doing some research where Ozzie replies to a few skeptics like myself:

On March 10, 2008, in reply to some of the above comments, Ozzie Freedom wrote:

Good question. Water4Gas has such low production per jar that it is hard to measure... It's about 1 LPH, per jar, if you're lucky. Now if you use my 6-pack design, you may be able to multiply that by 10-12 times. If you done it right. Is that little? "Frankly my dear, I don't give a damn", said Clark Gable

Why don't I give a damn? And why shouldn't you? Because results talk, and the rest walks. That's why Water4Gas is all over the place: we talk results and we talk simplicity rather than science. I'm not against ANY member of this forum who knows a lot more than myself, and definitely more than the public. And I love science. But I know that THE PUBLIC needs and wants results.

How come my 6-pack boosts Carter Blankenship's truck, a 12.7 liter turbo-charged giant, by 26%? Do you think I can explain that? If I needed to explain WHY or even HOW it works, I'd be out of business 2 years ago. I have only a faint clew how it works. But I do know beyond a shadow of a doubt, that these results are real. The "new" science is RESULTS=SCIENTIFIC TRUTH. If you think this is BS, try to tell it to the people sending me their success stories or bringing their vehicles over to show me successful installations.

Regarding the coil, it does NOT get hot one bit! Why would it get hot? There's hardly any current going thru the wire - the current jumps thru the electrolyte, not thru the wires. And 2 amps is nothing anyway. The coil is used for two main reasons: (1) it can be manufactured cheaply by hand, and (2) it produces a magnetic field that helps split the water thus reducing energy input requirements. It was the genius of Bill Lang to gamble on this design.

So when you ask "Can any body explain, how their system works?", that's a valid question! I want to know too! I'll accept any sound explanation on HOW IT DOES WORK. However, as you may have guessed, I have zero interest in how IT DOES NOT WORK. Because there no such question. Arguing with success is dead end futile.

Right now our yearly sales exceed 4.5 mil. Yes, US dollars. And refunds dropped from 1-2% to near zero. The 1-week-old "Water4Gas University" already has 4,800 active students and growing by 500 students a day. You can envy water4gas, or curse our mothers and so forth, or you can join the revolution and be part of the success by promoting us for a fat profit share.

Again, there is NOTHING wrong with any other design or direction, we're all supporting each other in more ways than one. Boyce design and Smack's design, between others, are excellent! All that Water4Gas is doing is cutting the complexity down to exactly the entry level the public needs. Anybody with NO MACHINES, with two broken pliers and half a brain, can build a jar with some wires inside. And get results. Now. Not when they are wise and skilled. Just now.

And the next step is, they'll be ready for your better and higher designs. Because we're opening the doors for your better systems by bringing the belief level back from the dead.

So, does it work? I don't know but I think it's worth looking into. I'm going to install it on my truck and find out. I'll keep you posted. Anyone else want to give it a shot and compare notes on installation and results?

John

New FHA Guideline Changes That Become Effective on July 14th

2008-06-17T09:25:04Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

New FHA Guideline Changes

That Become Effective on July 14th

06-16-08

I wanted to get this out to you guys so that you were aware of the new FHA Guidelines. These are some major changes that will effect your clients and their ability to get an FHA loan.

FHA Announces Risk-Based Premiums
For the first time in history, credit scores will be utilized in FHA lending. All LTB members are encourage to review the important FHA guideline changes that become effective on July 14th, 2008.

Let's take a closer look at the ten primary changes to the FHA guidelines:

1. Borrowers with either no score or at least 500 may get an LTV >90%.
2. Borrowers with a score less than 500 get a maximum LTV of 90%.
3. Borrowers without scores will require manual underwriting.
4. Upfront Mortgage Insurance Premiums will range from 1.25% to 2.25%, depending on score.
5. The Monthly Mortgage Insurance will range from .50% to .55% depending on score.
6. The premium is based on the borrower with the lowest score.
7. If one of the borrowers has no score, then the Non-Traditional credit grade is used.
8. Credit rescoring is allowed to improve a borrower's credit grade. 9. All FHA Secure refinances >95% LTV with delinquencies have a 2.25% UFMIP and .55% MMI.
10. These changes apply to cash-out, rate & term, and non-delinquent FHA Secure refinances.

I have the actual mortgagee letter from FHA if you would like the full details. Please feel free to call and talk with me about these new guideline changes and how it will impact your clients or have your current clients call me with any questions.

It's even more important now than in the past 15 years for everyone to maintain excellent credit. Good credit does not cut it anymore! Scores below 680 will cost you thousands of dollars in the long run. For more information on cleaning up your credit or obtaining a free credit report you may visit www.creditscientist.com

Trigger Leads: Don't Be Exploited by theCredit Bureaus

2008-04-10T20:34:12Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

Trigger Leads: Don't Be Exploited by the Credit Bureaus

While it's an illegal breach of privacy for real estate agents or mortgage originators to sell your credit information, it is perfectly legal for credit companies to do so. For a price ranging anywhere from $25 to $100, your name and certain specifics about your credit report – including your address, phone number, mortgage history, and even your FICO score range – are sold by the credit bureaus to mortgage companies. The result is an onslaught of unsolicited phone calls and junk mail as soon as you apply for a home loan.

Unfortunately, no legislation exists to prevent credit bureaus from profiting at your expense. As a "trigger lead", you are simply at the mercy of any number of marketing campaigns designed specifically to discredit the mortgage professional you've come to know and trust.

That's why, prior to applying for any loan program, I suggest that you visit www.optoutprescreen.com to opt-out of future credit bureau solicitations and avoid this problem altogether. Not only will you avoid the hassle of telemarketers, but by opting out you could potentially add 10 to 15 points to your credit score!

In addition, if you do happen to receive phone calls from solicitors, ask them to place your name and number on their Do Not Call list. All telemarketing companies have their own internal Do Not Call list that they must abide by. Be sure to take down the name of both the company and the individual who made the call, and to let the solicitor know that you're doing so. This way, you will have grounds to seek action against them, should they call again.

As you embark on what is likely the largest financial transaction of your life, you should place yourself in the hands of a professional – not some transactional loan officer who purchased your information from the credit bureaus. Remember, only a limited number of sources exist for lenders to obtain mortgage money, so it's extremely unlikely that a borrower will find an unbelievably low rate without an unbelievably high cost.

If, however, you are curious about the programs these mortgage companies have to offer, then listen to what they have to say. Once they've offered you a rate that seems too good to be true, ask them a question or two from the following list.

1.		Where did you get my information? Who gave you permission to call me, and how much did you pay for my information?

		By asking this series of straightforward questions, you demonstrate that you're not an uninformed or unsuspecting mortgage applicant who can be easily victimized.

2.		Why should I be willing to speak with you when you weren’t referred to me by someone I trust?

		This question demonstrates that you're interested in a long-term relationship with a trusted advisor.

3.		How are mortgage interest rates determined, and what impacts the rates that you are offering me today?

		Many unprofessional and uninformed individuals believe that home loan rates are based on the 10-Year Treasury Note. This, however, is not true. Mortgage interest rates are actually based on mortgage-backed securities or mortgage bonds. In fact, many times these securities trade in opposite directions, and anyone who's looking at Treasury Notes to determine the lock on your loan will provide you with inaccurate information.

		Asking this question will demonstrate that you're aware of the fact that mortgage rates can change frequently, even hourly, depending on economic news and market volatility. If they can't share this information with you, what else might they be leaving out?

4.		What impact does the Federal Reserve have on the rate I will be paying for my first mortgage with you?

		The answer here is that it does not. The interest rate that you pay is impacted by the bonds and securities markets. When the Fed changes short term rates, the "Fed Funds Rate" or the "Discount Rate", only rates for items such as Home Equity Lines of Credit (HELOCs), credit cards, and other similar loans are directly impacted.

5.		What are the specific closing costs associated with the rate and program you're offering me today?

		Many times, interest rates will be quoted with origination fees or discount points included in order to deliver the attractive interest rate being offered. While in some cases your situation may warrant paying these fees to get a better rate, you should always be made aware of these fees and options up front. Also, be aware of any fees disguised as a "Funding Fee." In some cases, these fees have been hidden in order to deliver what seems like an exceptionally low rate with "no points or fees."


If you have any questions about this, or any other part of the mortgage process, please call me. I'll be happy to assist you in any way I can. Learn how you can generate more listings and produce shorter listing appointments with Real Estate Power Tools "After many, many months of searching for a tool that I felt would give me a competitive edge in the FSBO and Expired Listings market, I made the decision to purchase Creation Source from Real Estate Power Tools…and it is a Winner!" Alan Wynn, Plano, TX

"Making Money Online is Easy.. If You Have The
Right Tool - Here is an Entire Tool Box"

Making Money Online: Drive Clients to Your Site with Google AdWords

2008-04-07T06:57:33Z

"Making Money Online is Easy Right? It Can Be if You Know What You're Doing"

TheWealthyPages.com will teach you how to earn money online, and best of all, it's free. We've reviewed all of the top "making money" programs online and have created this site to help you determine which products and services will actually help you make money online!

Lesson #1: How Does Someone Make Money Online?

There are many ways to make money online, but the most common, and most lucrative way to make money online is to sell products for companies willing to share the profits with you. The process of marketing to people online is called "Internet Marketing" and it is a multi billion dollar industry. Hundreds of thousands of people, just like yourself, are making money online everyday by partnering with companies who pay commissions based on sales that you help generate.

This sounds difficult but it's not because these companies have "Affiliate Programs" setup for their partners (Affiliates). You can partner with thousands of companies online and start selling their products in literally minutes. So how do you start selling a companies products as an Affiliate? Simple, all you need to do is send visitors to their websites. This sounds simple, and it is, but finding the right kind of traffic and enough of it is more difficult. Websites like WealthyAffiliate.com teach people techniques to drive traffic to Affiliate sites and earn HUGE dollars online. Making $500 a day online is quite normal and you can get started very quickly if you know the right techniques.

Lesson #2: What If I have No Experience?

The most common misconception about Internet Marketing is that only people with good computer knowledge and marketing skills can take part. This is NOT the case.

You DO NOT NEED a website
You DO NOT NEED your own product
You DO NOT NEED any previous experience (none)

What you will need is a guide to help you learn how to get started. The top marketing website online is called the Wealthy Affiliate University, and for a few dollars a month you can learn from the pro's and work with thousands of other aspiring Internet Marketers.

Lesson #3: Be careful who you choose to learn from

Everyone has heard of being "Scammed" on the Internet, and although this is only somewhat true, many people have learned about making money online from companies who do not have good reputations in the Internet Marketing world.

There are many companies out there that offer good techniques and strategies but with little support or coaching. A program like the Wealthy Affiliate University offers both great techniques and support. If you are just getting started with Internet Marketing, support is one of the first things that you need to look for when choosing a guide. Also, steer clear from anything that offers you "Overnight" success, or "Get Rich Quick" programs.

There is no such thing as "Getting Rich Quick" on the Internet. It doesn't matter what you hear, you will never make money on the Internet overnight. Internet Marketing is a real business and it takes time to grow your business to a point where you are earning $500 / day. If you are dedicated to learning the correct techniques and are willing to put in the work, you WILL achieve your goals of making big money online.

Click Here to Learn About The Wealthy Affiliate University

You Magazine

2008-04-04T10:21:32Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

April 2008


	March 2008
	February 2008
	January 2008
	December 2007
	November 2007
	October 2007

Everything You Need to Know About 529 Plans These college-savings accounts have improved, and now more states offer a deduction for contributing to one. If you are thinking about opening a 529 college savings account, now is the time to do it. Sure, most plans now let you invest any time during the year. But the sooner your money is in an account, the sooner it starts to earn tax-free returns. Plus, recent changes to the law make 529 plans more attractive than ever. Keep Reading »

4 Ways to Get Your Kids Talking at the Dinner Table Once a highly regarded institution, the family dinner table has all but disappeared from the weeknight agenda. For the better part of this country's history, "dinner time" meant far more than the time of the evening when supper was put on the table. It was an opportunity for parents to connect with children and for everyone to discuss the events of their day. The following article and video is one mother's attempt to reestablish this tradition. Keep Reading »

Does the Fed Change Your Monthly Mortgage Payment? The Federal Reserve has cut interest rates six straight times since September 2007. Most analysts are predicting that the Fed will cut rates even further when it meets at the end of this month. And yet, despite a full 3% in interest rate cuts during this time, mortgage rates are significantly higher now than they were just three months ago. How is that possible? Don't rate cuts equal lower mortgage rates? Read on as the team at YOU Magazine goes behind the headlines to show you how these Fed cuts do and don't affect your mortgage. Keep Reading »

Accidental Landlords: A Great Unplanned Investment Lower house prices and higher rents have created a new breed of real estate investor: the accidental landlord. Some bought new homes and couldn’t sell their old ones while others chose to invest in the changing market. Either way, being a landlord is more than just sitting back and collecting the rent. This month YOU Magazine takes a closer look at how being a successful landlord is no accident. Keep Reading »

Vim and Vinegar Bringing Vitality to Your Food with an Age-Old Ingredient by Kirk Leins Vinegar is one of the world's original processed foods. For more than five thousand years, food lovers worldwide have been using this incredible ingredient to breathe life into a variety of dishes. But the allure of vinegar doesn't end there. Follow me as I explore one of the most interesting and complex products found in any supermarket, in every city throughout the world. Keep Reading »

Take a Hike! Bringing Your Workout to the Great Outdoors The weather is getting warmer and the days are getting longer. Spring is here and it's time to shed the cocoon of winter. Part of this yearly transition involves rediscovering the beauty that lies outside our front doors. But, spring is also about getting ourselves back into swimsuit shape. Follow along as we show you how to shed your "winter coat," while also taking in some much needed fresh air. We're going on a hike. Keep Reading »

The Formula for Failure and Success by Jim Rohn Failure is not a single, cataclysmic event. We do not fail overnight. Failure is the inevitable result of an accumulation of poor thinking and poor choices. To put it more simply, failure is nothing more than a few errors in judgment repeated every day. Now why would someone make an error in judgment and then be so foolish as to repeat it every day? The answer is because he or she does not think that it matters. Keep Reading »
Learn how you can generate more listings and produce shorter listing appointments with Real Estate Power Tools "After many, many months of searching for a tool that I felt would give me a competitive edge in the FSBO and Expired Listings market, I made the decision to purchase Creation Source from Real Estate Power Tools…and it is a Winner!" Alan Wynn, Plano, TX "Making Money Online is Easy.. If You Have The Right Tool - Here is an Entire Tool Box"

The Short Sale

2008-04-03T06:25:09Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

The Short Sale
A Unique Selling Proposition for Real Estate Agents

While a short sale may be a last resort for many homeowners facing foreclosure, it also represents a great opportunity for potential home buyers and real estate investors. This article is designed to help answer a few basic questions about the substantial risk and reward involved in this extremely complex and often drawn out process.

What is a Short Sale?

A short sale is a legally-binding agreement to allow a home to be sold for less than the amount that is owed. And, while short sales are not by any means common or easy, because of increasing inventory levels and foreclosures in some parts of the country, lenders are much more eager to negotiate with borrowers who are having trouble paying their mortgages. For potential home buyers and real estate investors, a short sale also offers a great opportunity to purchase property at a significant discount.

However, don't expect a lot of help from the lender without first providing a sales contract from a qualified buyer and all the information required by the lender's loss mitigation department.

Of course, lenders are not looking to bail out "flippers" or other borrowers who simply overextended themselves. In most cases, a borrower must have suffered a serious financial hardship that directly caused him or her to default on the mortgage: the loss of a job, a serious illness, or the death of a loved one.

A written declaration and supporting documentation demonstrating financial hardship will definitely be required by the lender. This may include pay stubs, tax returns, and liquid asset statements, among other documentation.

Key Considerations to Keep in Mind

It's important to note that the difference between what is owed on a mortgage and the final amount the lender collects after the costs of the sale, including real estate commissions and possibly other charges don't simply disappear in a short sale. In the past, this deficiency or "canceled mortgage debt" was considered taxable income to the borrower. However, thanks to the Mortgage Forgiveness Act of 2007, the tax burden for qualifying canceled mortgage debt (as high as 35%) for primary residences only has been temporarily waived until the end of 2009.

If there are multiple liens against the property, all lien holders will have to be involved in the negotiation process, not just the first lien holder. Therefore, communication and patience are essential components of any short sale. This is why an experienced real estate agent and mortgage professional become so valuable to this process.

Call me. Let's discuss how we can market short sales and other foreclosure alternatives to potential buyers and sellers as a unique selling proposition that clearly separates us from the competition.

"Making Money Online is Easy.. If You Have The
Right Tool - Here is an Entire Tool Box"

Websites Every REALTOR Needs to Know

2008-03-14T07:42:53Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

Get Inside the Mind of the Consumer:
Websites Every REALTOR® Needs to Know

Studies indicate that over 80% of today's home buyers visit the Internet long before seeking the professional assistance of a REALTOR®. This means that, thanks to popular realty-themed websites that compete for your business, your clients are already armed with more information than ever before.

That's why today's savviest real estate agents must change their perspective and fight back. And the best way to do this is to visit and become familiar with these kinds of sites and the features they offer. This data will not only prepare you to answer any questions your clients might have, it will allow you to provide a more complete service that your clients will want to recommend to all of their friends and family members.

Property Listings & More

1) Redfin.com: In addition to listings, this site offers information such as how long a home has been for sale, its last sales price, and its current value. It also provides virtual tours to listed homes.
2) Trulia.com: Like Zillow.com, which offers satellite views and the estimated values of each home, Trulia's “heat maps” show how hot or cold an area is based on prices, sales, and popularity among its users. Trulia.com also has free tools real estate agents can easily add to their own websites to increase functionality and traffic.
3) Maps.Google.com and Maps.Live.com: For bird's-eye view, even 360 degrees in some cases, these amazing map sites offer a virtual perspective of available homes that's truly hard to beat.
4) Walkscore.com: interesting site that rates any address based on the walking distance of its nearby stores, restaurants, schools, parks, coffee shops etc.
5) SchoolMatters.com: A Standard & Poor's company, this site offers parents (and potential homebuyers) an objective rating of public schools and public school districts by region, including test scores and demographics. GreatSchools.net offers similar info and ratings on private schools based on region.

Government Websites Government loan programs offer great opportunities for many consumers in many regions across the country, especially first-time buyers and veterans. The following websites are likely one of the first of many sites potential homebuyers visit during this process:

1) HUD.Gov is the official website for the U.S. Department of Housing and Urban Development (H.U.D.) This site lists HUD homes and provides information for home buyers, including financing options and home buying programs available through the Federal Housing Administration (FHA).
2) Homeloans.va.gov: This site houses information about government home loan programs specifically for veterans.

Give me a call if you think of any more sites I should add to my list. I look forward to developing ways that we can grow our business together.

Click here to view the "7 Reasons Why You Need XSitePro Now!" video Web Development Just Got a Make Over…Learn How to Create a Professional Site in Minutes?

Credit Scoring: Part IV Credit Remediation

2008-03-11T14:54:08Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

Credit Scoring
Part IV: Credit Remediation

If you have clients in need of credit remediation, and especially if you live in an area where this is an overall problem within the population, you should seek to align yourself with a credible referral source for credit repair. While government web sites will suggest that self-help may be the best option, keep in mind that for the most part these people lack discipline when it comes to spending and making payments. They are not likely to have the diligence to research and remedy their own credit problems.

The Federal Trade Commission regulates credit repair services, and they provide free information to help consumers spot, stop, and avoid businesses with fraudulent, deceptive, or unfair practices.

Be familiar with the Credit Repair Organizations Act http://www.ftc.gov/os/statutes/croa/croa.htm as you seek out a genuine ally in this area. Research their background and make sure this company will cast a good reflection on you when you refer your clients to them.

I have a company that I use for this purpose, and they have a proven track record of keeping in touch with my clients and me on a regular basis, while my clients are going through the remediation process. Their work is 100% guaranteed, which means that if they are not able to meet the commitments outlined at the commencement of the process, then there is no charge to the consumer.

I have also developed marketing literature on the topic of credit repair, which I pass out to my clients to help them understand credit scoring. This provides them with information about what they can do to immediately help improve their credit score. Subsequently, in many cases, they are able to obtain the financing for the home they wish to purchase.

From there, I continually keep an eye out for new options as their credit standing improves, and seek to place them in a lower interest loan as time progresses. I feel it is my responsibility to do more than simply quote rates and provide a loan, but rather to help them manage their debt on an ongoing basis to meet their long-term goals.

Let me know when you would like to set an appointment and talk about what I can do to assist your clients who are in need of credit remediation services. I look forward to assisting you in this area.

Look for more Business Boosters about ways to help educate clients and provide stellar customer service!

You Magazine

2008-03-07T15:38:39Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

March 2008


	February 2008
	January 2008
	December 2007
	November 2007
	October 2007
	September 2007

How to Shop for a Mortgage Today By Mertz Esswein The troubles in the subprime mortgage market have led to tighter standards for all borrowers. Buyers and refinancers with sterling credit records won't feel the pinch. But lenders have reined in their underwriting rules for borrowers with less-than-perfect credit and for those seeking nontraditional loans that require a low initial payment or little verification of income. Now, rising home prices can no longer serve as the ultimate guarantor of a home loan. Keep Reading »

FW: Forward Thinking Simple Email Etiquette By Tim Sanders Welcome to my first article on email and how to use it more effectively in your life. I call it The Dirty Dozen Rules Of Email Etiquette. I’m the former Chief Solutions Officer at Yahoo!® I also wrote the book, The Likeability Factor. And for the last year my team and I have been doing research on how people just like you feel about email and how it's used in your culture and in your life. It can be your biggest tool or your Achilles' heel. It just depends on what you know. Keep Reading »

Teeth Whitening Making the Most of Your Smile It serves as both an involuntary reflex and an intended gesture. Unique to human physiology, most people view it as a highly positive signal. To say it is integral to conducting business is a bit of an understatement. As for our personal lives, let’s just say that without it most relationships would never get off the ground. If you haven’t guessed, we're talking about our ability to smile. Keep Reading »

10 Credit Card Myths That Put Your Scores At Risk! By Linda Ferrari, President, Credit Resource Corp. Managing your credit is a long and sometimes confusing process. It seems everywhere you look, some program or web site offers credit fixes, offers and deals that make it seem so easy to consolidate debt or, worse, get "easy credit" to buy the things you need. They offer "free credit analysis" - many of which will most likely lead you down a path of credit destruction. Most of what is out there is just plain misinformation and contradicts the steps you are taking to improve and maintain your credit scores. The best defense against making a credit blunder is to better educate yourself about credit and ways to manage it. Keep Reading »

Discover the New Trends in Home Flooring If you're moving into a new house or just want to change the look of your current living space, a good place to begin is with your floors. The reason is simple. There are many new flooring options available, enabling homeowners to pick and choose the right surface to best suit their needs and desires. Keep Reading »

Ensure Your Family's Future Happiness and Success We all want the best for our children. This is a worthwhile sentiment despite its sometimes paradoxical nature. Here's an example. Most parents believe in teaching their kids the virtue of manners, as well as the concept of respecting authority. The same parent may simultaneously teach about verbalizing one's feelings or standing up for a belief. For a child, this can result in a mixed message that translates to, "Don't speak unless spoken to - except, of course, if it's about something really important or you believe in what you're doing." Keep Reading »

March Madness: High-Scoring Snacks By Kirk Leins Football season is over, but there's still another title to crown – NCAA College Basketball Champions. For fans of college hoops, there's nothing quite like the month of March. Nicknamed March Madness, it's a month-long, single-elimination tournament featuring the NCAA's 64 most-celebrated Division 1 teams. For those who can't relate, let's put it into culinary terms. Take one-part shocking upset, throw in a healthy dose of nail-biting excitement, top off with a splash of fear – and you've got March Madness. Keep Reading »

Credit Scoring Part III: Dealing with Challenges

2008-03-06T22:22:05Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

Credit Scoring
Part III: Dealing with Challenges

Typically, a person with a low credit score is in this position because they lack structure in his or her life. There are, of course, cases where unplanned health or employment complications are to blame, but for the most part, these are individuals who lack the discipline to pay their bills on time or curb their spending. This is your opportunity to be the "knight in shining armor" that provides them with a simple roadmap to get back on track.

Let's take a look at some examples that can help to quickly improve less-than-perfect credit scores for the potential homebuyer:

Let's say we have a borrower with a credit score of 664. She has a concentration of credit card debt on one card; let's say $17,000 on a card with a $20,000 limit. At the same time, she has four or five additional credit cards, all with a zero balance. I would advise the borrower to distribute the debt over a number of her cards. Remember, a borrower's credit to debt ratio represents 30% of his or her overall score. By simply changing the ratio of available credit to debt, the borrower in this example could possibly increase her credit score to something closer to 700, saving thousands of dollars on her mortgage.

Another thing to take into consideration in a case like this is what percentage each of the five factors measure in the resulting credit score. Let's say we have a borrower with a "credit high" (the maximum debt allowance on all cards, combined) of $20,000. He has one card that is used for business purposes that is pushing the limit. I would advise the client to get two new cards and, once again, spread the debt out over all of his cards, leaving at least 30% available credit on each card. This will positively affect his overall score, based on the five elements of the FICO scoring model.

Conversely, the borrower should be advised not to close any existing credit card accounts, even if they are at a zero balance. Some people think they are doing themselves a favor by having fewer cards, but they lose out on the credit history factor. Even if the borrower does not have a good rate on an old credit card, they are rewarded for having the long-term credit history, and from time to time they should make a small purchase to keep the account in an active status.

These are just a few examples of what borrowers can do to improve their credit scores when they consider buying a home. If they are disappointed by the fact that they cannot get the most desirable loan up front, I would continue to monitor rates and their specific loan scenarios on an ongoing basis and advise them when they will have a chance to turn this situation around. The new mortgage debt will temporarily drop the score, but once the first payment registers as "paid," the score will begin to go up again and eventually present the opportunity to refinance at a lower rate.

Stay tuned for Credit Scoring, Part IV: Credit Remediation

Credit Scoring Part II

2008-03-02T21:35:09Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

Credit Scoring
Part II: The Five Factors of Credit Scoring

There are five factors that comprise the credit score. They are listed below in order of importance, just as an underwriter would look at the score:

Payment History: 35% impact. Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items.
Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.
Type of Credit: 10% impact. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards only.
Inquiries: 10% impact. This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. Each hard inquiry can cost from 2 to 50 points on a credit score, but the maximum number of inquiries that will reduce the score is 10. In other words, 11 or more inquiries in a six-month period will have no further impact on the borrower's credit score.

Remember, a computer that's not taking any personal factors into consideration calculates these scores. When a credit report is generated, it is simply today's snapshot of the borrower's credit profile. This can fluctuate dramatically within the course of a week, depending on the individual's own activities. The borrower should be made aware of this when they enter into the loan process, and know that it's not in their best interest to go out on a shopping spree. They need to make sure they are not creating a negative impact on the score while the lender is reviewing their file.

Secondly, it is often beneficial to compile a Tri-Merge Credit Report. This combines the scores provided by Fair-Isaac (FICO) with the score generated by TransUnion (Empirica) and the Beacon Score produced by Equifax. The lender should be provided with this rounded profile because these three scoring systems can vary in their results. The lender is going to look at the middle score and throw out the other two. In many cases, this works to the borrower's advantage.

Stay tuned for Credit Scoring, Part III: Dealing with Challenges

Credit Scoring & Optimization

2008-02-29T15:47:01Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

Credit Scoring
Part I: Good Credit Translates into Lower Rates for the Consumer

In the 1960s, Fair Isaac Corporation started working on a system lenders could use to evaluate the likelihood of receiving repayment on loans. Prior to that, it was really a matter of trusting an individual to be a "man of his word," so to speak. Fair Isaac sought to take human error out of the equation with a reliable system that could determine whether or not consumers were truly worthy of credit, and thus FICO was born. This evolved to become the standard for lenders by the 1980s.

Credit scoring has an enormous impact on a borrower's ability to purchase a home. It can mean the difference between getting a good interest rate and the home of their dreams, or whether they even qualify at all. For this reason, it is important for borrowers to understand the credit scoring process, and to know what their credit score is when they look to obtain mortgage financing.

What the credit scoring model seeks to quantify is how likely the consumer is to pay off their debt without being more than 90 days late on a payment at any time in the future. Credit scores can range between a low score of 350 and a high of 850. The higher the client's score is, the less likely they are to default on their loan. Only a rare one out of approximately 1300 people in the United States have a credit score of above 800. These are the slam-dunk clients that walk away with the best interest rates. On the other hand, one out of eight prospective home buyers are faced with the possibility that they may not qualify for the loan they want because they have a lower score between 500 and 600. Here is a sample chart that illustrates how an underwriter interprets the score in terms of risk, and how the interest rate is affected.

Stay tuned for Credit Scoring, Part II: The Five Factors of Credit Scoring

Learn how to repair your credit

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How to Write an Effective Email

2008-02-27T19:04:16Z

John Nunnally
Mortgage Advisor
Carolina First
Phone: (864)809-3700
Fax: (866)318-8259
john.nunnally@carolinafirst.com
GoCarolinaFirst.com

How to Write an Effective Email

In today's high-tech world, the ability to write an effective email is becoming more and more important, especially for business owners and professionals. With this in mind, here are a few tips for writing more effective emails:

• Have a Meaningful Subject Line: This is important for two reasons. First, anything that appears insignificant could very well get lost in the shuffle. A subject line needs to contain information that's not only important to the reader but interesting as well. Secondly, it needs to give the reader an idea of what they can expect upon opening the email. Having a subject line that's unrelated to the email is a recipe for miscommunication and possible disaster.

• Stay Focused: When a writer strays off topic, so will the reader. Figure out what your message is and stick to it. If you have several messages, it's actually better to write several emails. This will ensure that each message has focus, enabling the reader to respond to them (or not) with equal focus.

Also, always begin your email with your most important points. It's been shown that most people scan emails, losing interest the further they go.

• Play by the Rules: Follow the rules of standard capitalization and spelling. Capitalizing everything is equivalent to shouting, and using all lower case is amateurish at best. Let's face it. Text messaging has caused many of us to abridge the spelling of certain words. Writing an email this way, however, will translate into a pedestrian attempt and convey the wrong message.

Also, avoid using fancy fonts as well as your "Tab" button. Many people's email readers aren't equipped to handle strange fonts or indentions. Use standard fonts such as Times New Roman or Arial. When you begin a new paragraph, try skipping a line rather than tabbing over.

• Avoid Spamming and Attachments: Everyone has at least one friend who has sent so many frivolous emails that you no longer even bother to look at his or her messages. Don't become that person. Attachments aren't necessarily a bad thing; but if you can fit your message within the body of an email, then you should do so. Attachments take time to download, may carry viruses, and take up space on a recipient's hard drive. In addition, they don't always translate, especially if the reader is opening the email on a PDA.

• Be Nice: Being overly critical in an email or disciplining via email is tacky and can lead to more trouble. If you have bad news to deliver, it's better to do it in person, or at least over the telephone.

It's also important to keep in mind that email is not always confidential. Once you've put something in writing, it can be used against you at a later time, potentially even in court!

• Proofread, Proofread, Proofread: Regardless of the author, if an email is being sent out on your behalf, it is your responsibility to proofread it. Not just once, but two or three times.

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