Hello all,
I am calling for a MASS NEW YEARS RESOLUTION for 2008 here in Denver, Colorado and the surrounding areas across the front range! With all the news of how terrible our economy is here in Colorado and how the credit crunch is ruining America, I think we all need to make a conscious effort to make some wiser decisions and plan a little more effectively in 2008.
I know it is difficult because for so long we have been living in a lifestyle that has been conducive to us being able to spend what we want. We all need to take a step back and look at the game from the other side of the board! A lot of people that I talk to get themselves into financial trouble because of ineffective planning. Back in 2002 or 2003 you moved into that nice 3,500 sq ft house on one of the beautiful Colorado golf courses, later in the year stopped by one the Denver dealerships owned by the greatest quarterback of all time, John Elway, picked up a new ride and then decided that you needed to finish the backyard, and put a hot tub in so you could enjoy the view of the Rocky Mountains once a month because work is keeping you too busy. The last thing on your mind was that we would soon be in an era where signing your name on a loan application and telling your local Colorado mortgage broker that you made somewhere around $120,000 last year, yeah that sounds about right, wouldn't be the norm anymore. Now your legit $80,000/month income plus commision cant even come close to getting you that $1,300/month house payment on that beautiful Colorado golf course like it did a few years ago. It's not thats interest rates have sky-rocketed but rather the types of loan that you were able to qualify for over the phone and close in a week are just not there anymore due to the much tighter Underwriting guildlines that lenders have put in place to try to slow future foreclosures....
WOW, for all of us to be so naive???
WELL, you guessed it, WAKE UP, WE ARE HERE, whether we like it or not....... so let's
PLAN FOR THE WORST, HOPE FOR THE BEST, AND YOU'LL BE ABLE TO TAKE WHAT COMES IN STRIDE !!!
We all know that it can be very difficult to change our ways, but we have to people, and WE CAN, that's what makes the country we live in so great, we have a choice!! We have to learn to protect our families biggest financial asset, OUR HOME! You know what it feels like to come home from a rough day, kick off your shoes, and know that you are in your safe haven....(BIG exhale).... just imagine that being taken away from you and you not having the means to fight back. Some careful planning and consultation can help to develop a practical and stratigic plan that can satisfy your short term goals in order to maintain your long term dreams of financial success.
First off a lot of us here in the Denver, Colorado area are in ARM's (Adjustable Rate Mortgages) with that cherry on top that they call "Interest Only"..... and oh yeah the whip cream know as a "3-year pre-payment penalty". A few years ago these type of loans were so affordable and common that millions and millions of them are set the adjust in 2005 after the 3 or 5 year introductory rate expires. Your rate may adjust as much as 3% in one month and get this, you are still just paying interest only !! THAT'S HIGHWAY ROBBERY, that people were put in that situation. Well here comes the planning..... we need to put everything out on the table, and see what we need to do and develop a PLAN to keep that shoe-kicking off haven here in the most enjoyable city in the country, Denver, Colorado and push toward a 30 year fixed rate loan. Very rarely are we going to be able to lower your house payment because you have been paying Interest Only which doesn't help to build equity and now we need to start paying down some principal. One option is to look at your monthly revolving and installment obligations, not necessarily lowering your house payment but lowering your total monthly obligations. The first step is to figure out where the problem lies, sometimes this may not be easy to go at alone, feel free to either email me or give me a call and I may have some insightful information to help you develop a plan!! We're not getting anywhere by sitting around and waiting for the "credit crunch" and the "market" to change, because quite frankly it may not for a while...... remember PLAN FOR THE WORST !!!
Stay tuned people, the next steps in completing your mortgage and financial 2008 resolutions is coming up next !!
If you have an ARM or Interest Only loan and would like some information and/or insight about your Denver area mortgage please do not hesitate to visit our website that has numerous real estate and financial tools; http://www.myprosperityfinancial.com/ or you can call me or one of our mortgage professionals at 303.666.6550 or toll free 866.898.7261!
From my family to yours, Have a GREAT Holiday !!
Mortgage Insight Specialist
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