Monthly Archives: August 2007
Power Tools of Savvy Homeowners (by David Newby)
Posted August 21, 2007 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinancePower Tools of Savvy Homeowners (by David Newby) For centuries, the prevailing wisdom regarding your home mortgage has been to âpay it off as soon as possible.â With 9 out of 10 Americans retiring broke in the richest country on Earth, it may be time to rethink that strategy. Here are 3 Reasons you should consider mortgaging your house to the hilt if you want to have a comfortable retirement. Reason #1- Safety. Home equity isnât always safe. Hurricane Katrina taught us this lesson very vividly with thousands of homeowners being paid less than their homes were worth by their insurance companies. You may trust your insurance company to pay you what your home is worth in case something happens to it, but why take the chance? At your current saving rate, how many years would it take you to replace $30,000 or $50,000 of lost equity? Another experience that can âstealâ your home equity is a real estate slump. If your equity is taken out of your property, you can use it even in a down market. Plus you can use your equity to earn you more money. More on that in Reason #3. Reason #2- Access. Your home equity is your money. You should always have access to it, even when you donât need it. Everyone runs into a financial emergency from time to time, and if you wait until you need to get access to your home equity (in case of job loss or other emergency) you canât get it! In the Katrina example above, if a natural disaster hit your house you could use the liquid equity to simply move to another house. This is a much more appealing alternative than waiting 3-6 months or up to a year to get YOUR OWN MONEY paid to you by your homeownersâ insurance policy. Have access to your home equity even if you donât need it at the moment. *donât get a Home Equity Line of Credit unless itâs one that can be converted to a second mortgage at your discretion. It looks like a credit card on your personal credit report, and when you use more than half of the available money your credit score will drop quickly. Reason #3- Return on Investment. Let me ask you a question: if I offered you an investment that earns 0%/yr. interest, that you have to contribute to every month, and that you have to ask permission to get out of, would you invest in that investment? If you answered no, then you basically just said you donât believe in paying your house off. That precisely describes home equity- it earns 0% and you have to ask the bank for permission to use it if youâre paying your house off. Whether a home appreciates or not has to do with the real estate market it is in; it has nothing to do with whether youâre paying it off or not. As such, you should refinance your house to 100% if possible with an interest only loan and invest your equity prudently at an attractive rate of return. Where to invest your equity? There are several options, and it depends on how willing you are to exercise your ârisk muscle.â I have clients who routinely earn anywhere from 9% up to 18% or more on their home equity. This simply ârepositioningâ of home equity can put an extra $1 million in your pocket over your lifetime, and give you greater safety and access to your own money along the way. Donât be overwhelmed by this concept. If youâre paying your house off or itâs paid off now, seriously consider mortgaging your house to the hilt with an interest only loan tomorrow. *********************************************************** Learn outside-the-box strategies that the wealthy use and that your CPA and financial planner likely donât even know in David Newbyâs book âWhy Didnât Anyone Teach Me This?â at http://www.FinancialPlanning202.com ***********************************************************
No Comments | Tags:Find Best Mortgage im Manhattan
Posted August 9, 2007 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceTo help consumers who are interest to realize the greatest American dream, it may help them if they can find the best mortgage rate in Manhattan, NY. This will help buffer the high cost of properties in this State.
Finding the best mortgage rate in Manhattan, NY is the reason why multifamily and even single unit residential houses continue to outstrip its supply.
Some professional real estate brokers are able to help New Yorkers find the best mortgage rate in Manhattan, NY, thus enlivening the real estate industry in this side of the Big Apple.
On the other hand, commercial real estate demand is also high and for this reason, there is more need for the best mortgage rate in Manhattan, NY. Manhattan, NY Bankers and mortgage companies are quick to pick up the trend that made them offer the best mortgage rates.
Acquiring properties through mortgage loans help consumers realize their dreams. Especially if the property you acquired is in the Big Apple, there are significant economic and personal opportunities available to you.
For this reason, bankers and lending institutions design the best mortgage rates in Manhattan, NY, to help those who want to live here.
Various mortgage programs are available such as Fixed Rate Mortgage (FRM) or Adjustable Rate Mortgage (ARM).
Because of the variety of programs available in each mortgage type, consumers need to seek assistance from mortgage counselors to help them choose the best program that suits their capacity to pay.
There are 30-year terms, 20-year terms or 10-year term. You may choose from fixed monthly payments or balloon mortgage payment.
Your earning capacity including your normal monetary requirements needs to be considered before embarking on a mortgage contract. This is because if you cannot pay your dues regularly, you may risk loosing your property to foreclosure.
Thus, acquiring a loan that is putting your property on the line may need intelligent decision-making. If you have experience in mortgage transactions before, going into another mortgage contract may be easier for you.
However, for those who are new in the mortgage lingo may need all the help from mortgage counselors. In this case, one of the most reliable and dependable mortgage companies maybe what you need.
The counselors will work with you from the nitty-gritty of mortgage programs and plans that will best suits your needs and your financial condition.
The counselors will work you through the process and will not commit anything until you are comfortable with the terms and conditions of the mortgage. This will ensure that you will find, not just the best mortgage rate in Manhattan, NY, but you are sure you can afford the mortgage payments because The counselors are able to walk you through the process.
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