Are you getting the Best Home Loan?

The US Senate passed an expanded version of HR 5140 – an economic stimulus package that includes a temporary increase in the conforming loan limits from $417,000 to as high as $730,000 in high cost areas. The higher loan limits will be limited to high cost areas and the $417,000 limit will remain in effect for most of the country, through December 31, 2008. A Certified Mortgage Planner can explain help explain the ramifications of this change. Click here to learn more about Certified Mortgage Planners: http://en.wikipedia.org/wiki/Certified_Mortgage_Planner

Attachement: Here's how you can save with a conforming loan

Mark & Sarah had been married for 2 years and wanted to buy a home but they believed they had a big problem...they needed a large down payment before they would be considered for a home loan in Fremont, CA. Sara's brother, a friend of mine referred Mark and Sarah so that they could get help in planning for a future home purchase. They wanted to know what they needed to do in the next 2 years so that they could purchase a home. I meet with them and explained about the little-known Fremont city and state programs designed to assist first-time home buyers like Mark and Sarah with down payment and closing cost assistance. I told them that with the amount of money they already had they would be able to use the state AND the Fremont, CA city program to put towards the purchase of a new home. The first question they asked after I explained the program to them was "Do you know a good Realtor?" and of course I did. Now they are in their new home and they have another problem...they have to unpack all those boxes!

Attachement: Click here for an Example of How This Program Works

A client wants to refinance his loan, to lower his monthly payments. However, he's not sure consolidating his credit debt into his mortgage makes financial sense. With the Consolidation Analysis Report, we can show the client how paying consumer debt through refinancing can be beneficial to him, and what those benefits total in monthly savings. (see Robert's story below - Case Study 17) To see an example of how consolidating debt can benefit you/your clients

Attachement: Consolidation Analysis Report

A client doesn't know what mortgage rate/cost structure is the most beneficial for their situation. Unlike what you may have heard from the news media, The Lowest Rate is Not Always The Best Loan . With our Total Cost Report, we can provide a comparison of 3-4 rate/cost scenarios, allowing the client to pick the one that best fits their lifestyle & future plans. To see an example of why the Total Cost is the most important feature to consider

Attachement: Total Cost Report

A client is purchasing a property with < 20% down-payment (which typically requires Private Mortgage Insurance or PMI), but doesn't know the options available to him. With our PMI Comparison Analysis Report, we can show how doing a 1st & 2nd Trust Deed combination instead of PMI will reduce his monthly payments, increase his tax deductions and increase his equity. To see an example of how you can avoid PMI & get more benefit from your mortgage

Attachement: PMI Comparison Analysis Report

A client is concerned about living paycheck to paycheck, and is considering either ending monthly investment in their retirement account/investments or canceling an insurance policy to free up monthly cash. With our Equity Repositioning Report, we can show him how refinancing & continuing to contribute to their investments can not only increase his monthly cash flow, but will also help him invest more fully in his financial future. To see an example of how Equity Repositioning can benefit you/your clients.

Attachement: Equity Repositioning Report

Joshua had dug himself into a bad financial hole, spending large amounts of money to keep up a lavish lifestyle he enjoyed – but couldn't afford. Before he realized it, he'd maxed out five credit cards and racked up over $73,000 in debt. Joshua didn't know what to do and thought his only option was to declare bankruptcy.

I'd helped Joshua p urchase his condominium four years ago and when I contacted him for our annual review, he informed me of his concerns about his mounting debt. After doing my research, I discovered that a large amount of equity had built up in his condo and we discussed the option of refinancing to pull cash out of his equity and use the money to completely pay off his debt – while at the same time keeping his new mortgage payments at a similar rate. Joshua and I also talked about the importance of staying out of debt by not outspending his income. Now, he's debt free and committed to being more responsible about his credit card purchases.

Bob and Carol were like many of us — paying just the minimum amount on their credit cards and never getting ahead on their debts. Their big wake-up call came when their oldest child entered his last year of high school and began filling out applications for college. They realized they needed to get out of credit card debt and get ready for their so n's college education. What to do?

After reviewing many loan options I discovered one that would allow Bob and Carol to refinance their current home loan, pay off the credit cards, and help fund the college tuition. Best of all, their new mortgage payment would be much less than the overall debts and high interest rates they'd been paying.

Recently my client, Steve, called me because he was a little short on cash to pay his property taxes. I sat down with him, analyzed the situation and saw that it was in his best interest to refinance his home, and take out a little bit of equity so he wouldn't get behind in his taxes.

After about an hour we found a way that Steve could act ually lower his payment by $200 a month, shorten the term of his loan payoff, AND pay his taxes off!

Mack and Judy purchased their home 6 years ago and had 24 more years left to pay on their existing mortgage. Mack, a Police Officer was looking for a way to consolidate his bills and shorten the payback time on his mortgage before he retires in 6 years. He wanted to build as much equity in his home because they want to move to another part of the c ountry when he retires.

After spending some time talking with Mack and Judy, I showed them a way that they could refinance their home, take some cash out and pay off their bills, and invest some of their equity into a conservative investment. I showed them how if they continued to put the same money each month spent on debt into their investment instead AND pay only the minimum interest-only payment on the new mortgage, they will be able to have enough money in their investment to completely pay off their new mortgage loan in 6 years. So without spending anymore than what they were already comfortable spending on bills each month they will retire and have the chance to completely pay-off their mortgage...19 years early! Mack smiled and asked, “Do you know of a good Financial Planner?” —I said, “Of course I do!”

Ralph and Judy got excited about refinancing after Judy's uncle refinanced his home, lowered his interest rate and borrowed enough extra to pay for a cruise to Alaska . When I examined Uncle Bill's transaction more closely, however, I discovered that the new loan will ultimately cost him more than the original, it postponed his payoff date from 18 to 30 years, and the fees he paid to refinance would have more than paid for his cruise.

Ralph and Judy's situation was similar to her uncle's. They were disappointed when I made a case against refinancing – but thankful they were not sent down that same road. So thankful they've since sent two of their friends to me to talk about refinancing!

Jim and Rachel were previous clients and empty nesters with a nice amount of equity in their four-bedroom home. One day, just out of curiosity, they stopped by a new development, and then fell in love with a brand-new, bigger home. That afternoon they called me to set an appointment to discuss financing.

I worked up some figures for them, and after we reviewed them I asked Jim and Rachel if they'd considered investing — rather than moving. I explained that if they stayed in their current home, leveraged the equity, and bought a second home as an investment property, the rent from the second home would help them pay off both properties in 15 years. This would fit their timeline of moving into a retirement community, and they'd have more “gold” for their golden years. They agreed, and they purchased a second property.

Recently, I received a call from Mick, a gentleman who wanted to purchase a condo for his adult daughter. She didn't qualify on her own because of her low credit scores and income. She is his youngest daughter and a single mom. Their neighborhood wasn't a good area for a young child, and Mick really wanted to help her find a stable home for her and his granddaughter.

When we met for his loan application I suggested we structure the purchase as an investment property. He could rent to his daughter at a price she could afford, and he'd get some rental income along with tax advantages. Now his daughter and granddaughter are safe and secure in a nice condo, and Mick has an investment property for his future.

I recently worked with Gary, a successful executive who was planning to buy a very large home in a gorgeous new subdivision. His busy schedule left little time for the typical hassle of applying for a mortgage, and he was sophisticated about getting the best rate and lowest fees.

I was able to handle Gary 's specialized needs by providing extremely competitive jumbo loan financing, low closing costs, and a streamlined application process that was tailored to his schedule. We closed his home purchase two days early, and now Gary and his family are making plans for a housewarming party.

Part of my commitment as a mortgage consultant is to advise my clients of ways when it may be to their advantage to refinance their home loan. Recently, I contacted Debbie and Todd and invited them to meet with me to review their current loan and make sure they were in a program that met both their goals and dreams.

Initially, Debbie and Todd's goal was to just pay their mortgage off early. Then, once free of house payments, their dream was to retire and travel. Todd is 5 years from retirement. I suggested refinancing their loan with an interest-only payment and take the monthly savings, along with some cash from the equity in their home and fund their retirement account now; let the extra money work for them for the next 5 years so that at retirement they would have enough money to pay off their house if they wanted and retire without the worry of having to make mortgage payments. I introduced them to a financial planner that helped design an investment plan to help them to set up a realistic plan to help them to achieve theirs goals and dreams for retirement worry-free!!!

Zack and Julie had been married for two years and, like most couples starting out, dreamed of owning their first home. They had been saving as much as they could but it seemed as though every day real estate prices were getting higher and higher. They began to despair of ever owning a home when Julie's mother told them to talk to me. I reviewed their financial situation and was happy to see that they both had steady employment and a good credit history. It was refreshing to meet a young couple who had done such a good job of restraining their credit card spending and paying their bills on time. Julie and Zack were delighted when I told them that there were several loans available to them with zero or little money down. Now Julie and Zack are busy house hunting, and Zack says he owes it all to his mother-in-law for sending them to talk to me!

I believe the reason many people don't buy a home is because they don't know they can — like my client, Brenda. She was 24, single and earned a good income, but had just graduated from college and been on the job for just a year and a half. She had some money saved but had very little credit history.

After getting some pre-qualification information from Brenda over the phone, we met and determined that she had paid her way through 4 years of college. With this fact in mind, I built a case to present to a lender by documenting her job history, her payment history to her university and rental history from the past two years, as well as proof that she graduated in the field of work she was now in. This gave her the credibility she needed to get an approval and an exceptional deal; 5% down on a $310,000 condo. She is now a proud homeowner!

A year ago, I contacted Robert and invited him to meet with me to review his current loan and make sure they were in a program that met both his goals and dreams.

Robert's goal was to pay off all of his debt and his mortgage as soon as possible. I suggested refinancing his loan at a lower rate, pay off all of his debt but put those debt payments towards his mortgage payments. This plan would allow him to own his home, free and clear, 14 years earlier than he'd anticipated. He was excited that his dream of being debt-free and paying off his mortgage before he retired was going to come true... so much sooner — and grateful that I'd shown him how.

Richard had great credit, an excellent income and good job stability, but he’d just been turned down for a mortgage. Richard is a savvy real estate investor and landlord. He owned two duplexes and wanted to buy a six-unit building in the same part of town. However, he didn’t want to take any money out of his stock market accounts to make the down payment. The first Lender he met with had no resource for a 100% loan on a six-unit investment property, and turned him down. When Richard described his situation to me, I saw the potential of his other two properties. I found an investor willing to loan Richard the entire sales price of the property by using a blanket mortgage — one loan secured by two properties. Making use of the equity he had in one of his duplexes gave us the collateral we needed, and allowed Richard to make zero down payment on his purchase. And — the rents covered the new mortgage payment almost to the penny.

Oscar, a recently divorced parent, was anxious to move from his apartment into a place of his own. He pictured a small house with a backyard so his five-year-old daughter, Amber, would have a place to play outside when she visited on weekends. However, Oscar was unsure if he could afford such a purchase in addition to his alimony and child-support payments. I’d helped Oscar and his family purchase their home six years ago and he called me to see what his home-buying options were. After reviewing his current financial picture, I was pleased to tell him that he qualified for a great low-interest loan that could help him purchase a two-bedroom townhouse in the area – one with the perfect backyard for his daughter, and with payments low enough to accommodate the mortgage and his other expenses. Twenty-one days later, Oscar was pushing Amber on her swing in their picture-perfect backyard.

Marissa and Marcos had set aside money for their son, Manny, to attend college, and they thought that with the savings on hand, some cutting back here and there, and Manny getting an on-campus job, the costs would be covered. Then, he was accepted at a prestigious private school — and those college expenses skyrocketed! With this they were afraid of getting behind in their other debt payments. After putting my HomeLoanFinder Service to work I was able to offer Marissa and Marcos several refinancing options, including a fixed-rate loan that would lower their monthly payment, and an adjustable-rate loan that would lower their payment even more. They opted for the security of the fixed-rate loan. The difference between their old and new payment will be enough to cover their son’s tuition and an almost-new car to take him safely to and from school. We also paid off ALL of their debt and now the whole family is thrilled!

Jeff and Angie were getting married and moving into Jeff’s five-year old house. Not only were they faced with thousands of dollars in wedding costs, but Jeff’s home was in dire need of Angie’s decorating touch. When Jeff was referred to me by his brother, I showed him how he could leverage some of the equity in his house to pay for the wedding of his dreams and bring his new bride home to a beautifully decorated house. Best of all, I made sure the loan had no pre-payment penalty so Jeff and Angie could use some of their wedding gift money to pay down the loan. The wedding was beautiful, and Jeff and Angie got to have their wedding cake and eat it, too!

Barbara was widowed a year ago, and now found she no longer had the energy to maintain her house. After having lived there for a number of years with her husband, it was heartbreaking to think about parting with a place that held so many precious memories. But, she was ready for the options a retirement community would provide. Barbara was referred to me by a couple I’d just helped refinance. When I asked Barbara if any of her children were interested in purchasing the home — to keep it in the family — she mentioned her recently divorced daughter who had a good job but wouldn’t be able to put together a down payment. When I told her about two loan programs that would allow her daughter to purchase the house with no down payment, she was so excited she called her daughter from my office! I helped her daughter with the mortgage, and now she has the family home, and Barbara has peace of mind.

Vicky had owned her own business for years when out of the blue, a buyer made her an offer that would allow her and husband Don to live comfortably. Vicky and Don came to me excited about their windfall and interested in a mortgage for a larger home. After spending some time with Vicky and Don, I found out they had no children at home and spent most of their weekends boating at the lake. I asked if they had ever considered buying a second home instead of a larger one that would require a lot of work. They looked at each other as if struck by lightning. Not only could they buy a home at the lake but they could eventually retire there. I arranged for them to meet an out-of-town Realtor and pre-qualified them to purchase the vacation home. Now Don and Vicky spend their free time at the lake instead of maintaining a large home.

In our changing market there are all sorts of options to consider — fixed-rate mortgages, adjustable-rate mortgages, interest-only mortgages, reverse mortgages, and more. I also love helping people when they’re just getting started; those clients applying for their first-time mortgage. Like Kent... He had a great job, except for the 90-minute commute downtown and back home every day. At our Initial Consultation I learned that Kent had two goals: to become a homeowner, and to find a home closer to where he worked. The timing was perfect; my Realtor Strategic Alliance Partner had called me a few days earlier to tell me about a little “grandma” house in a great downtown neighborhood that was coming on the market. It was a fixer-upper, but Kent figured he’d have plenty of time for fixing up once he wasn’t making that long commute. We got him pre-qualified, and now Kent is spending time on his home — instead of time on the road.

Jeff and Beth were young, in love — and in serious debt. They’d purchased a home, two new cars, and had a baby, all in less than two years. Beth had gone from full-time to part-time employment to have more time with the baby, and now they were actually borrowing on one credit card to pay on another credit card. They were weeks away from possible garnishment of their wages and even foreclosure on their home. I’d helped Beth’s dad refinance two years ago, and he convinced Jeff and Beth to contact me for a free consultation. We spoke at length on the telephone, then we set an appointment for the next day. The advice I gave them was to consolidate their debt. I stressed the importance of working with a professional credit counselor to get back on the right track, and showed them how, in about 36 months, they may be able to consider becoming homeowners again. It was a painful wake-up call, but the family is facing a much brighter future.

It’s a buyers’ market — and Rob and Katherine wanted advice about purchasing a piece of property as an investment for their retirement. Two years ago I’d helped them refinance their mortgage from a 30-year fixed to a 15-year fixed mortgage with lower payments, and those lower payments allowed them to make regular contributions to their savings account. Now those savings, combined with the equity in their home, meant they had access to a nice amount of cash to use for investing. After I outlined a number of strategies they decided to keep their current home and buy a second property as a rental. The equity we took out of their home allowed them to make a 30 percent down payment, and the expected income from the rental will cover that property’s monthly payments. Over the next five years, they’ll pay off the equity loan and continue paying off their current home’s mortgage. At the end of those five years, based on the history of our area, Rob and Katherine’s real estate will be a good, solid nest egg as they begin their retirement.

Georgia and Bill, both schoolteachers, retired when they turned 63 and were ready to start living their dream – to travel the world. Their plan was to sell their home, rent a cheap apartment, and use the proceeds from the sale to finance their travel. I’d helped their son purchase a home a few months ago and he suggested Georgia and Bill talk to me before listing their home. As an alternative to selling, I suggested they also consider a reverse mortgage – a loan against the equity in their home that isn’t repaid as long as they both continue to live there. Instead of paying rent on an apartment, a reverse mortgage would allow them to keep their home and “spend down” the equity they’d built up for so many years. Now Georgia and Bill are packing for Paris – instead of paying rent!

Mark and Sarah had been married for 2 years and really wanted to buy a home but they believed they had a big problem...they needed a large down payment before they would be considered for a home loan. Sara's brother, a client of mine referred Mark and Sarah so that they could get help in planing for a future home purchase. They wanted to know what they needed to do in the next 2 years so that they could purchase a home. I meet with them and explained about the little-known city and state programs designed to assist first-time home buyers like Mark and Sarah with down payment and closing cost assistance. I told them that with the amount of money they already had they would be able to use the state AND city program to put towards the purchase of a new home. The first question they asked after I explained the program to them was "Do you know a good Realtor?" and of course I did. Now they are in their new home and they have another problem...they have to unpack all those boxes!