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Equity Managment

By
Services for Real Estate Pros with LBD Digital Marketing

One on the problems we hear about in the mortgage industry is how consumers are continually sucking equity out of there homes to pay off debt.  In 2005 the average credit card debt per house hold was around $10,000.00. I have been in the mortgage industry for 7 years now and have seen the cycle of consumers refinancing every couple of years to consolidate credit card debt. The problem I believe is lack of education.

I have found that if you spend the time to work with a client and provide them with the necessary information and show them how they can increase there net worth by managing the equity in there home correctly over time, that it can really make a difference. I personally have clients that once it was shown to them in black and white how much they can accumulate in assets over a period of time by adjusting there spending habits and putting in place a comprehensive equity management plan, they have now developed a mind set of creating financial wealth versus consuming equity in there home by paying of newly acquired unnecessary credit card debt.

As a Certified Mortgage Planning Specialist it is my duty to put as much valuable information into the hands of my clients to help them understand how they can manage the equity in there homes and create financial wealth. A lot of people just don’t know where to start and don’t understand the affects of compounding interest whether paying on a credit card or putting there money in some type of investment.

There is no quick fix to this problem and it requires a serious commitment by the client to want to change there current situation and be willing to make some adjustments in how they manage there money and there most valuable financial asset – there mortgage.

For more information on how you can develop a plan for successfully managing your equity please contact;

Mark Bustamonte
Certified Financial Planning Specialist
Mortgage Sources Corp
866-840-2240
markb@mtgplanning.com
www.mtgplanning.com
http://quikonnex.com/channel/page/mbustamonte-Mortgage

Sabine Pyrchalla
Colorado Springs, CO

Mark,

The sad truth, as in any Industry, is that we have the Ethical and the not so Ethical. When you work with someone who truly cares about what's best for the client, someone who likes to educate people and is not just in the business for the quick buck - it's wonderful. Sadly, there are still too many that will do anything for a quick buck and do not care about the outcome for the client. I've had clients that were overburdened by 10-20% above the market value of their home, through refinancing. It's not pretty when the truth finally sinks in - that the Equity in your home is not an endless piggy back for you to take from. I hope more people in the Industry follow your plan and educate clients.

Oct 06, 2006 02:58 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Mark,

You are totally correct. I have been doing this for over 14 years. And the biggest problem is that many...and that would be a high number of loan officers, don't really care. Their true goal is to keep refinancing them every year or two years so they can make money. Now..in the state of NJ, they are trying to crack down on this. They have a work sheet called. NTB. Net tangible benefit. This does stop a few loans from going through...but not all.

 Anyhow...this is something that I have been adding to my resume per se when speaking to a client.

Where are you located out of?

jeff

Oct 06, 2006 03:00 AM
Mark Bustamonte
LBD Digital Marketing - Lakeville, MN
LBD Digital Marketing

Jeff,

I agree with your feed back 100%. Its to bad that there are some people out there, just like in any industry that only have there own interest at heart. What they dont realize is the fact that if they would put there clients interest first there business would be so much better. I believe the responsiblity we have in managing, what for some people is the largest asset they will ever have, is a tremendose responsibility. It is unfortunate that the States have to get involved, but it is necessary for the protection of the general public.

I am out of Jefferson City, MO

Mark

Oct 07, 2006 02:26 PM