mortgage planning: What the politicans don't understand.....Why home owners fall behind on their mortgages - 07/24/08 06:43 AM
If History tends to repeat itself, then we're traveling down a familiar road.  The U.S. House of representatives has just passed the Mortgage Rescue legislation and it's fast tracking to the Senate.  One particular amendment that I'm having a problem with is that congressmen want to do away with down payment assistance, or DPA.
Most people would tend to assume if the borrower on a home loan is putting their own money into the transaction, that it's because they are likely to be more able to make payments on that loan in the future.  That's the assumption, or what traditionally has … (3 comments)

mortgage planning: The Great Mortgage Planning Contest.....Simulation #1 - 03/11/08 11:21 AM
I played allot of basketball in my life, one thing that I never got away from was practice.  During practice my coaches would often simulate real game situations.  As a mortgage planner, or those whom think they understand mortgage planning, it's often helpful to practice our trade, learn from others whom have different styles then we do. Therefore I'm creating the first Mortgage Planning Simulation Runoff!   Winner's will be determined by those whom participate and those whom contribute in terms of feedback.  The invitation if for anyone in the Mortgage Planning Strategies Group or any other Mortgage Forums.  Some of … (1 comments)

mortgage planning: Mortgage Planning University is selling out!! - 01/21/08 09:51 AM
This might sound harsh, but I'm ticked off right now with one of the more talented men in our industry.  I've been a member of the Strategic Equity for over two years.  I attended both of their Event's in Vegas, and I've been a subscriber to Mortgage Planning Magazine.  Frankly Steven Marshall is one of the most talented individuals I've ever had the pleasure of meeting.  His record speaks for itself in terms of mortgage origination.
But the smoke and mirrors show that he's employed with his Mortgage Planning University is making me sick.  The first conference was incredible, the money I … (19 comments)

mortgage planning: Update on UFirst agents - 01/21/08 07:09 AM
Sometimes articles you write can become hot topics months after you've written them...Here is an example of one such blog I wrote some time ago.  No More Spamming,  it wasn't really very popular, but you can tell who's drinking the Kool-Aid, you can either go back and read the message through the link above, or I'll repost it below...
 karl;
 
your are wrong and your comments show your ignorance or lack of investigation before opening your mouth.  I sorry to be blunt, but the fact is this company is nothing like amway, Noni, etc.  This is a money management software system that if … (30 comments)

mortgage planning: What the Columbia River and finances have in common......Part I - 01/02/08 08:29 AM
It's the first of the year and my wife and I were discussing where we want to go this summer with our family.  I suggested a road trip down the Oregon coast.  We'd start at the Columbia river and work our way down to the Redwood Forest in California, and then across the state through Nevada and back to Utah.  
I'm also fascinated with maps, and while planning this potential trip I noticed the Columbia River and how wide it get's before it enters the Pacific.  As a little kid I remember my parents driving across the river, and it seemed like … (0 comments)

mortgage planning: Suitability, something that mortgage and real estate agents better worry about! - 12/21/07 07:50 AM
What does suitability mean?  If your a financial planner and you've passed your series 6 or 8 license requirements, you know that suitability can apply on many levels with each client.  I was speaking to one of my neighbors who happens to be vice president of one of the largest insurance groups in my state.  He told me that he fully expected mortgage brokers to eventually receive the same scrutiny that most of his colleagues faced in the securities industry.  He told me that many of the products were now merging into each others markets, and little did he know about … (0 comments)

mortgage planning: Case Study #2 MMA,Equity Harvesting vs HYBRID PLAN - 11/05/07 04:36 PM
In our last case, John and Jill Doe were meeting once again with their financial planner.  They had recently looked over two plans that would help them maximize their asset's and prepare them for retirement.  The MCA or Mortgage Merge Account had certain advantages that could actually put more money in their hands at retirement, but only if they sold their home.  The Equity Harvesting Plan gave them a large nest egg and also saved them taxes over their lifetimes.  But their financial planner had noticed some interesting characteristics in each plan that he thought that they could take advantage of … (0 comments)

mortgage planning: Case Study #1 ....MMA vs Equity Harvesting - 11/05/07 04:20 PM
Finally I'm able to discuss one of my cases.  I've have of course left out the names, so this particular borrower will go by our beloved name of John and Jane Doe.  John lives in hypothetical Bacon, Alabama, and for kicks and giggles 30 years old.  John and Jane talk to a mortgage planner and some guy in their neighborhood who told them about some really cool new product called the "Mortgage Checking Account", supposedly it pays down your mortgage in 9 years or less.   John comes from the philosophy that you should make equity work for you, but his wife … (1 comments)

mortgage planning: Suze Orman...the queen of pop financial advice... - 10/29/07 08:55 AM
Recently I was clicking through my 400 channels of DirectTV. I happened across the Suze Orman show.  I've been in the financial world for some time now, so naturally I watch with a somewhat jaded eye.  Normally these shows come across as a cross between pop-finance and pop-psychology.  This show was no different, and it made me think about all the other TV guru's.
I wish they had a buyer beware logo that would appear on the screen when watching these shows.  Some of the advice that these so called experts give are border line negligent to down right dangerous.  I guess … (5 comments)

mortgage planning: Debt-snowball method...is it really the most effective way to payoff debt? - 10/29/07 06:16 AM
My partner and I have been discussing a number of seminars that we can offer our clients.  We want to provide an overall financial package that includes everything, from buying your first home, to planning retirement.  One problem we've noticed that throw most people off track is debt.  The one basic problem for most home owners is that there is not enough coming in each month, and too much is going out of pocket.  Therefore the need to use credit is over whelming, and as national numbers prove, the problem isn't getting any better.
The other night I was listening to Dave … (1 comments)

mortgage planning: Why you want to use the MMA strategy and NEVER pay off your mortgage..... - 10/23/07 07:38 PM
Hopefully some of you read my headline carefully.  Let me repeat it once again, "why you want to use the mortgage merge account strategy and NEVER pay off your mortgage".  So what if the MMA?  It's actually a program or software that was developed to accelerate the payoff of an amortized mortgage loan.  Currently their are several companies nationwide that sell this product as software and distribute it through multi-level marketing or through direct agents.  The software usually cost's anywhere from $2000-3500 dollars, and often one needs to acquire a HELOC, or what most call a home equity line of credit.  … (2 comments)

mortgage planning: How to enjoy your Golden Years...Stress Fee and with more dollars in your pocket!! - 09/21/07 10:19 AM
Then you may want to speak to a licensed mortgage loan officer that has a strong emphasis in retirement planning.  Few seniors understand reverse mortgage products, and many figure they can barely survive on social security and therefore do not take advantage of higher end Medicare supplemental programs that could save them thousands of dollars a year.
The average senior citizen who is 65 and on Medicare will be contacted by an insurance agent in regards to acquiring additional supplemental insurance.  There are many companies that sell supplemental, and with the ever increasing costs of doctor services, mental health care, and rising … (0 comments)

mortgage planning: Are the mortgage accelerators right on the money??? - 08/18/07 08:43 AM
In an earlier post I discussed the merit's of using a mortgage acceleration program.  However I still am convinced that it's not the only option for someone who is serious about paying their home off.  But recent changes in the mortgage market are making a once viable option in terms of cashing out equity a now daunting process.
Case in point, two months ago a borrower could access equity through a pay-option ARM or interest only 100% cash-out.  Now banks are cutting or significantly reducing the loan to value options for these types of loans.  Are they inherently evil loan programs, personally … (3 comments)

mortgage planning: How long will the sub-prime storm actually last????? - 08/15/07 03:43 AM
The last few weeks have been interesting to say the least. Normally I've never been an active market watcher, but due to recent problems with the mortgage industry I've been glued to my TV in the mornings.  One interesting factoid this morning was a chart showing the "RESETS" for future sub-prime loans. It looks bad the rest of the year and into 2008, but in 2009 through 2012 the resets then reduce to a much more manageable level.
For those who do not understand what a RESET is, this is a quick definition.  When someone takes out an adjustable rate mortgage (ARM) … (0 comments)

mortgage planning: When will we all hit bottom! - 08/09/07 03:49 PM
If your in San Diego or Las Vegas your hoping we already hit the bottom.  But the recent Alt-A collapse, and sup-prime fiasco is going to force down prices even more.  Last night I was reading until 2 in the morning, and was just trying to get my mind around the real scope of this issue.
Warning...if anyone is sensitive to bad news, or just wants happy news, then don't continue to read the rest of this blog......
The problem folks is that speculative markets have no real value.  My daddy always told me, "Son, what has value is what you produce from … (4 comments)

mortgage planning: Mortgage Merge Mania...is it the right program for you!! - 07/27/07 03:06 PM
Mortgage Merge Account discussion time again everyone.  Yes, it sounds like the best thing to hit the market since sliced bread!  Imagine paying off your home in 5-8 years without changing your current lifestyle at all!!!  Or that's how it's pitched by some of the more unscrupulous MMA hucksters.
What is the mortgage merge account, well that term is actually used by one of the largest players currently in this new industry.  United First Financial has coined it's HELOC program ( Home Equity Line of Credit) the Mortgage Merge Account or MMA.  The concept was not invented by this company nor was … (1 comments)

mortgage planning: Mortgage planning is quickly branching into other niches - 06/13/07 05:56 AM
I hope some of my fellow mortgage planners were able to attend the Strategic Equity Mortgage Conference in Las Vegas this past week.  I know I love taking a week away from the office, immersing myself in the simple pleasure of learning and recharging the proverbial battery of desire, and I'm not talking about the desire that you normally associate with Sin City!!
What was interesting this year was to see that mortgage planning as a concept has matured.  No longer are we just parroting Doug Andrews insurance strategies, though Doug should get allot of credit for bringing the whole concept to … (1 comments)

mortgage planning: Aunnities and the destructive power of taxation - 01/26/07 06:48 AM
 
The long term goal of investing is to multiply the eggs in our basket.  Most people are very focused on producing more eggs (getting a higher rate of return) but pay little attention to the fox that perpetually robs the hen house.  If you ignore the fox, soon there will be nothing left to produce more eggs.  
 
 
 
That fox is taxation.  If you talk to a financial planner, they can show you a concept called and annuity.  This annuity builds a high fence around the hen house and keeps the foxes out, and allows the eggs to multiply.
If your working with … (0 comments)

mortgage planning: Annuities may be an excellent tax shelter for investments - 01/26/07 06:26 AM
Annuities are flexible insurance contracts, they are designed to provide income and help achieve long term savings goals.  This has become a popular investment, last year alone, annuity sales were over $200 billion dollars.
Much like a CD is a investment offered by a bank, an annuity is a product offered by an insurance company.  The same company that insures you, or protects your family also can help you save for retirement. 
Often a potential investor will make a single lump-sum payment, or series of monthly payments, the investor then can later draw out payments from the insurance company.  These … (0 comments)

mortgage planning: Use your Equity while you still can!! - 01/17/07 07:26 AM
(Along with my Mortgage Planning newsletter, I also send this practical advice newsletter once a quarter) 
 
Utilize Your Equity While You Still Can
 
In past history the stock market has been quite volatile, real estate has proven to be a stable investment over the years. According to the US Department of Housing and Urban Development, real estate prices had an average increase of 56% over a five-year period. Forbes reported an increase of 247% over the last 25 years. The problem is that times are beginning to change. In fact, the national rate of real estate appreciation has had its … (0 comments)