mortgages: Subprime Changes the Lending Landscape
- 04/21/07 01:44 AM
The effects of the subprime crisis are becoming clearer with each passing day. According to the Wall Street Journal, tightening guidelines and fewer available products are creating challenges for borrowers with credit issues. If you're thinking about taking on or refinancing a mortgage, your credit score will be crucial when it comes to obtaining the best loan program available. For homeowners with ARMs that are scheduled to reset anytime within the next 2 to 24 months, the challenges are even greater. With higher credit standards and tightening guidelines, you may not even qualify for a refinance if you wait too long. At … (0 comments)
mortgages: First-Class Mail is Forever Altered
- 04/21/07 01:09 AM
The US Postal Service has introduced the "forever" stamp. This special stamp, good for any first-class letter weighing up to one ounce, is valid forever, no matter how much postal rates increase. That means consumers can purchase these special stamps at today's rate and use them for years to come, even if postal prices double or triple. And, while there are definitely better places to invest your money in the long term, the forever stamp offers consumers protection against rate hikes and the annoyance of having to purchase one- and two-cent stamps whenever prices do increase. In 1968, first-class stamps were six … (5 comments)
mortgages: The Five Factors of Credit Scoring
- 04/19/07 11:39 PM
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 … (0 comments)
mortgages: Personal Note Cards- Powerful Marketing Tool
- 04/19/07 11:25 PM
The business professional with the most friends WINS! Period. The formula for success is that simple. The power to attract people is what gauges success. The more people consider you a friend and a business professional, the greater your potential for success. Your existing client base, if managed properly, can become your most treasured outside sales force for referrals, the champions of your cause. Your style of marketing to these people will profoundly impact their impression of you. I firmly advise implementing a personalized, hand-written note campaign. It's quite simple: Two cards a day and 10 a week equal 520 notes per year. … (6 comments)
mortgages: Write−offs to Remember: Deductions in the Loan Process
- 04/19/07 12:18 AM
Write-offs are the government's way of rewarding taxpayers when they've done something the government likes. And to judge by the write-offs, the government likes it when people borrow money to buy a house. There are write-offs aplenty, many of which people often forget. Make sure you take advantage of every break the IRS will give. Here are a few that are often forgotten: Points: According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a "service fee" are … (0 comments)
mortgages: Finding Our Niche- What it Takes to Get Ahead of the Competition
- 04/17/07 11:35 PM
Very few of us have the luxury of being the only professional in our marketplace offering our particular service. Competition is constantly at our heels, hoping to catapult one step ahead of us. For this reason, we must continually strive to differentiate ourselves from any competition we may have. Dan Sullivan, President of The Strategic Coach Inc. and co-author of The Great Crossover, provides a solution. According to Sullivan, if you wish to remain in the upper echelon of your profession you must "...disregard your own commodity and focus on deepening the power and possibility of all your relationships." This means that no … (3 comments)
mortgages: Annual Percentage Rate- What is the Real Cost of Financing?
- 04/17/07 11:05 PM
Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon. The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of … (0 comments)
mortgages: Building A Referral Network- How to Reach Out to Those Around You
- 04/17/07 04:09 PM
Everyone has heard the expression, "It's not what you know but who you know." Of course this isn't entirely true, but having a successful referral network can lead to a significant increase in satisfied clients with minimal effort on your part. Have you ever gone into a large home improvement store, trying to find a certain item, only to come face-to-face with a wall of similar products? It can be overwhelming. Imagine if you had an expert right there to tell you what you need to know. Now imagine a team of experts throughout the store, all ready to assist you. … (3 comments)
mortgages: A Lesson From A Gazelle and Lion
- 04/17/07 01:42 AM
Every day in Africa a gazelle wakes up. It knows that it must run faster than the fastest lion, or it will be killed.
Every morning a lion wakes up. It knows that it must outrun the slowest gazelle, or it will starve to death.
It doesn't matter whether you are a lion or a gazelle. When the sun comes up, you'd better be running. Opportunities present themselves every day. If you are a runner (a go-getter), you stand a good chance of capitalizing on them. If you are a walker or a sitter (passive), you will probably not react quickly enough and the … (5 comments)
mortgages: Winners vs Losers
- 04/16/07 12:17 AM
Winners vs Losers A winner is always part of the answer. A loser is always part of the problem. A winner always has a plan. A loser always has an excuse. A winner says: "Let me do it for you."A loser says: "That is not my job." A winner sees an answer for any problem. A loser sees a problem for any answer. A winner sees a green near every sandtrap.A loser sees two sandtraps near every green. A winner says: "It may be difficult but it's possible."A loser says: "It may be possible but it's too difficult." … (4 comments)
mortgages: Renters Have Much to Gain by Pursuing Home Ownership
- 04/11/07 02:28 PM
Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage planners will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages. Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you're helping them make their mortgage payment. The numbers are staggering if you look at it this way. If you … (0 comments)
mortgages: Refinance Your Mortgage for Rate and Payment Reductions
- 04/05/07 11:54 PM
One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at "no cost" to the borrower. In the no-points no-fees scenario, the mortgage planner uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are "one time" fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting … (0 comments)
mortgages: Getting the Best Interest Rate on Your Home Loan?
- 04/03/07 08:27 PM
Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It's important to have a mortgage planner in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible. Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has … (0 comments)
mortgages: Should You Leverage Your Home or Pay It Down Rapidly?
- 04/03/07 01:33 AM
There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let's examine the pros and cons of both strategies. Leveraging Your Property. In order to understand why you'd want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here's an example: If Consumer "A" buys a home for $300,000, and puts 20% down, … (1 comments)
mortgages: Home Buyers Face Decisions That Affect Their Long-Term Financial Picture
- 04/01/07 10:09 PM
Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals. First and foremost, you must have a mortgage planner in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here. Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates … (0 comments)
mortgages: What To Ask When Shopping For A Mortgage
- 04/01/07 02:37 AM
Research is an important component of any large transaction. I'm sure you'll agree that a home mortgage is one of, if not the largest financial investment a person will make in their lifetime. I'm sure you'll also agree that given the importance of this investment you would want an industry professional that, quite frankly, knows their industry! With that in mind here are a few questions to ask a potential mortgage professional to assure yourself that they indeed have a handle on their industry and, directly, your best interests. What are interest rates based on? Mortgage interest rates are based on the … (6 comments)
The effects of the subprime crisis are becoming clearer with each passing day. According to the Wall Street Journal, tightening guidelines and fewer available products are creating challenges for borrowers with credit issues. If you're thinking about taking on or refinancing a mortgage, your credit score will be crucial when it comes to obtaining the best loan program available.;)
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