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Saturday’s: 9AM 1590 AM/97.9 FM KVTA
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Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
In this episode, Michael Harris talks about why a home equity line of credit with a higher number could be better than your first mortgage with a lower number. He discusses ITIN loans, DSCR loans, and interest rates. Michael also delves into interest rate versus interest volume, why having mortgages equates to having debts, and how to remove emotions from these financial decisions.
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I want to know what kind of loan do you have. Many of you have terrific loans, you have low-interest rates, and you’re sitting tight. I’m here to tell you that we’re going to talk about home equity lines of credit. A home equity line of credit with a higher number could be better than your first mortgage with a lower number. Let’s sit on that one for a moment. We’re also going to talk about ITIN loans, Taxpayer Identification loans. Those who are in the States legally who are working and have an ITIN loan or an ITIN card without a Social Security card or number. I’m going to talk about that. We’re going to talk about DSCR loans, Debt Service Coverage Ratio loans, loans that are being done for investors. Investors, when we look at the rent, it’s covering the overall mortgage.
Welcome to the program. We had a lot of economic news that came out this past week. We’re looking at a lot of things going on. We’re watching mortgage rates. I’m looking at the average rate today at about 7.09% as it’s been told to us on a Thursday, but that Thursday was a Thursday prior. We’re looking at interest rates that are anywhere from the high 6s to the mid-7s, depending upon what you are doing on a 30-year fixed. We are near and at 21-year highs. We’re looking at the treasury and various funding that they’re doing. We’re looking at the fears of recession that have been evaporating. We’re looking at the Fitch ratings and downgraded US debt and fiscal deterioration. We’re looking at the Fed, are they finishing hikes or they’re going to have an additional?
The September Fed rate hike is at 15% chance of that occurring, but we’re still looking at November at 40%. It’s a pause and a possible. We’ll take a look at that. As we look at where the market is, we’re still looking at low inventory and prices remaining in some areas still going higher. We’re looking at inventory so low and demand is still there, but we’re looking at affordability. What it used to take $60,000 or $80,000 to qualify and buy, it takes $100,000 and change to buy now.
We’re looking at the qualifications and the debt-to-income ratio based on your principal, interest, taxes, insurance, and your association fee, if any plus monthly expenditures, credit cards, car payments, things you can’t say no to once they’re there. Those items, as a ratio to your allowable income, generally needs to be 43%, can stretch up to 50% in certain circumstances, but if you’re self-employed and you’re writing off income, you need to look at bank statement, non-qualified mortgage loans, bank statement loans that we can do based on cashflow. If you’re electing to pay less in taxes with allowable deductions, you might be looking to pay a little bit more on your monthly.
We’re going to talk about interest rate versus interest volume. That’s part of the issue or item regarding your equity line which is simple interest, and your mortgage which is an amortized debt. That is heavy front-loaded interest for less interest later on. During the break, I want all of you to go online or pick up your mortgage statement. I want you to be ready for that. I want you to take a look at that. We’re going to look at that together. We are looking to solve your interest dilemma. We want to get you out of debt sooner. We want to get you attacking the principal sooner and debt-free. I want you to determine your debt-free date. I want to get an audience with you.
If you’d like to give us a call, (888) 543-3980. Go to YourRealEstateLife.com. That’s our show site. Our company site is United4Loans.com. All of our past programs are posted there. You can listen to our show on News Talk 1590 KVTA by going to KVTA.com and stream. You can go to K-EARTH101.com and stream there. Our show is Sunday morning at 7:00 AM. You’re tuning in now on News Talk 1590 KVTA. You’re tuning in at 9:00 AM on Saturday. We’re here every single week talking to you about your real estate life. I’m in my 37th year in the industry in 2023. I’ve been on radio for seventeen-plus years, and I want to bring you that wealth of knowledge for your real estate lives. I’m Mike Harris. We will have a lot more after the break.
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We have a lot of inquiries during the break. We had one gentleman already sign up in order to find out more about his debt-free date. You can do that as well. You can find out more if you’d like to schedule an appointment or even attend a webinar on a Tuesday evening at 6:00 PM, you’re more than happy to do that and sign up. Also, you can send it to Webinar@AHeadForMoney.com. You can specify if you want your own appointment. If you’re not going on a webinar, but a one-on-one, I’d be happy to do that. We’ll set up a Calendly appointment and get that done to a time that meets your needs. Whether it’s day or night, we can make sure that happens. This gentleman set up his appointment for a little later now. I appreciate that.
I have a busy afternoon talking to individuals and understanding what it is you want to accomplish. Are you looking to eliminate debt or create wealth? What is your goal? Where are you in your process? We’ve had some individuals who are looking to eliminate debt so they can control the monies that are coming in and use it for other things that they enjoy doing, making sure they have the things that they have not been able to set up prior. We have individuals who are setting up for college, for their children, and for their family legacy. They want to do some travel. They want to get under the burden or out of the burden of these higher interest rates. We can do all of that.
We’ve seen the ability to take down debt from 30, 28, 26 years, or however amount of time you have remaining, and we’re cutting it to as much as 1/3 to 1/2 of the time without changing your lifestyle. If that sounds intriguing to you, we can do that with no obligation and have a consultation. I’ll send you out some information if you’d like to review. We can set a time, discuss your personal situation, and then we can look to run your numbers. Once we run your numbers, you’ll see what can be done and we’ll decide together. My numbers went from 26.4 years down to 7.9 years.
If I was doing this on my own like many people said, “Why can’t I do this myself?” You can, but you have to be due diligent about it. I was only cutting it down to about 12.3 and I’m a numbers guy. That extra four years is a lot of money. Your own personal financial GPS is what I’m talking about. You are driving your car but you have a guide perhaps getting you to your destination the fastest way possible. That’s what I’m looking to do for your debt and interest. Elimination of that interest much sooner. I’m giving you the route and the way. You can decide to make a wrong turn just like you do in your GPS when it says reroute and recalculate. You can do that. It’s going to tell you what that timing is.
You could focus on an issue, an item, or a certain debt, but it may tell you that you’ve taken your payoff date a little bit higher. It’ll show you the consequences of those actions. I’d like to talk to you more about it. It’s Webinar@AHeadForMoney.com. Set up your own personal appointment or get the information for our Tuesday night 6:00 PM webinar. I would like to discuss with you what I can do to help you with your current obligations.
You don’t have to have a mortgage to utilize this opportunity. I’ve had individuals who’ve had credit card debt now, the soon-to-be student loan debt coming back on board, other items, and card debt. We’ve taken them from 15 years down to 3 and change. We can do that for you as well and get you on the path, if you choose, for homeownership. Homeownership is a little bit more expensive. When you have an interest rate over 7%, you have home prices remaining strong in high demand. We are finding that it is more difficult to qualify. You need more income but if we can utilize discretionary, get you in a better spot, improve your credit scores, and eliminate the debt much sooner, that is our goal. Let’s attack the issue. Let’s attack the debt. Let’s get more discretionary back in your pocket.
I mentioned earlier we see the Fed right now. If September has moved, there maybe 15% chance and November is still 40. That’s going to affect the consumer, which is you. It’s going to raise the prime. It’s going to raise consumer borrowing costs. It’s going to be a burden of course on your expenditures, but what the Fed is trying to do is cause that discomfort to allow and cause you not to spend as much to allow inflation perhaps to come down. It’s harsh. They’re looking for pain and we already have that pain and many industries are feeling that. That’s then transcending back to you.
Looking ahead to next week, we have a real big week of news. It starts on Tuesday. We have the Case-Shiller Home Price Index and Consumer Confidence coming out. On Wednesday, we have the ADP National Employment Report and GDP chain deflator. We have gross domestic product and pending home sales. On Thursday, we have jobless claims, personal consumption expenditure, personal income spending, and Chicago PMI. That’s not where it stops. On Friday, we have the jobs number. It’s interesting that it’s right on September 1st, 2023. A lot of times, they push it out to the following Friday. This time, it’s right on the first.
On September 1st, we have the jobs number with hourly earnings. We look at non-farm payrolls, the unemployment rate, and also the ISM index. We’re going to be watching a lot of these numbers, seeing where they’re going, and get the general trend. That’s going to dictate where the Fed is possibly going on their move come September or perhaps pushing it off six weeks later. We’re watching this very carefully. That’s what we do. If you go to our site, YourRealEstateLife.com, you’ll see a barometer there. That barometer shows where the market is moving every single day. Where the mortgage-backed security market is moving causing interest rates to move up or down.
When we have a loan in process or even getting ready to be processed on a purchase, we’re looking at what’s going on with the information that I mentioned. We’re taking a look at that and we’re deciding together when the opportunistic time is to lock a loan. The longer you lock a loan, the more expensive a loan is. You may be working with another individual. They may say, “Lock it now.” Okay, but rates get better. You may not get all of that float down or they may have to go to another person and then you’re going here, going there, and now resubmitting. A lot of stuff happens depending on the timeframe that you have. We’ve been able to close loans in a couple of weeks.
The longer you lock a loan, the more expensive a loan is. Click To TweetMy goal is to run, get ready, watch the market, and take the least amount of days possible to lock a loan and to pay the least amount for that timeline so we can save you money. My goal is always to save you money. I spend my money the way I spend yours sparingly. I want value for my money and so should you. I want to make sure you have the right result. That takes me understanding what your timeline and your motivation is. How long are you in the property? What is your goal? Are you going to keep it as a rental? Is this your long-term hold? What are you looking to achieve and do? Are you downsizing? Are you maybe transferring your tax from your previous to your new? Depending upon what you qualify for, we can discuss that as well.
We have professionals that either I can help or I’d refer pending upon the expertise, but it’s me talking to you and finding out what you want to do. Whether you’re an investor, doing home improvement, consolidating debt, or looking at a home equity line of credit. Still in the program, I’m going to talk more about interest volume versus interest rate. I want to talk about your home equity line of credit. What do you mean, you don’t have one? I want to talk to you about looking at getting one based on the equity you have in your property. A lot of people are complaining saying, “The prime is up.” The rate may be more expensive, but it’s less expensive than that statement I told you to grab before the last break.
That statement that you now have or maybe you have in front of you or you remember, how much interest, what proportion of interest is that total payment. If you look at your statement, you have principal and interest. Some of you have mortgage insurance premium for an FHA loan or PMI for a conventional loan, depending on the equity that you had when you originally purchased or got the loan. You also have your taxes and insurance. Some of you maybe close to 70% plus have what is called impounds. You have escrows that you pay. They collect your taxes on a monthly, your insurance on a monthly, pay your insurance annually, and then pay your taxes in California here twice a year.
If you take out the escrows and the mortgage insurance premium or PMI, now you have principal and interest. If you look at the principal and the interest, which one is higher? For many of you until about 18 to 21 or 22 years in, it’s more interest until it gets 50/50. When you’re looking at a 3% interest rate, when you get started, you’re paying over 60% interest on that payment. Is your interest rate 3%? You’re weighted to the beginning of that loan. At the end of the loan, you’re going to be much lower. Over the course of the loan, you’re still paying about 52% interest.
When amortized loan is different from a simple interest loan, if you have a home equity line of credit and it’s 10%, you’re paying 10% level interest only for that 10 years. Before then, it’s a fully amortized loan to then pay it off. For those 10 years, interest only, you could be paying principal and deciding how much you’re putting in, but you are only paying 10% simple interest. A 10% simple interest loan can be utilized to pay off an amortized loan that’s weighted heavily towards interest in the beginning and actually get even further ahead.
That’s one principle of money that we can show you. There’s a numerous amount, but a perfect financial GPS can handle that and solve for multiple variables. Go back to your grade school days, high school days, or college days and you fretted about solving for X, then you had Y, then you had Z. Think about if you had multiple variables or a dozen variables. Who do you choose? What do you do? What’s right? What’s wrong? A lot of people will give you advice and information. Some people will tell you to pay off the smallest one because the smallest one, once it’s paid, shows progress and then you get excited, you continue to go. Whether that’s right or wrong, it’s better than doing nothing at all.
Nothing is wrong about any way to pay off debt. It’s just that perhaps there’s a better and more efficient way. Rather than playing darts and getting it on the board somewhere, we want to hitch the bullseye all the way through. There are life changes that do occur. With those changes, we have predictive analysis and various items that can be accomplished and done. We can save for items that are needed. We can look at if this occurs, what that will mean as far as your timeline.
Maybe you’re looking to purchase a vehicle or financing it over 72 to 74 months, whatever the case may be now. Maybe it’s only going to add a year and two months to your overall debt space because of the efficiency of utilizing this perfect financial GPS. It’s always nice to have someone smarter in the room who doesn’t talk back. That’s what you’re going to have here. You’re going to have that person, place, or individual through your own opportunity to take advantage of this.
I’d like to show you how that can work for you. No obligation. Give us a call, (888) 543-3980. Make it clear that you want to get information regarding the perfect financial GPS program. Of course, I want to get your name and your email. I can send you out some information. Let me know what you think and then we can set a time that makes sense for you. I’m looking at where things are now as far as volume and lending. There are people needing to cash out and do home improvement. There are those shares of items. Those interest rates are higher than where they were before, so we’ll take a look at that.
If we’re looking at a year or two years from now, interest rates may come down not as low as ever they were back before. I was looking at some information on the historical side. We got down in 2021 to 2.65%. Now we’re up at 7.09%. We look at the affordability factor that’s large. We haven’t seen these levels since 2001. Historically, we’re still quite low, but prices are much higher. People are earning more perhaps and there’s a weighing average to that, but affordability is the key right now. It’s getting you in the right loan, but it’s not a loan that’s getting you in and then forgetting about you. My obligation and what I like to do is to make sure you have the ability to eliminate the debt, afford the debt, and not be in that home and be a burden.
Interest rate versus interest volume. How much do you pay the bank? That’s the key. Low interest rates can still cost you hundreds of thousands of dollars. When people are saying they have that low rate, you don’t. I told you about your monthly statement. I want you to take a look at that and if you have questions, I want you to email me. I can send you out an item to review regarding interest rate and interest volume so you understand.
This is what your bank insurance companies and others have done for years. They’re anxious for you to start that process of paying 60%, 70%, or 80% on an amortized loan. When you refinance, unless you are taking your savings off that refinance, paying off principal, continuing to bank that payment, and moving it further down that amortization schedule or eliminating calculated debt to be further ahead, most people refinance and use it as a piggy bank. They save more money and start the process again. It’s all about affordability. How much payment can you afford?
That’s a thought and it’s very easy to do because you’re pushing it down and pushing it away and further. You’re not making progress, but you’re saving and paying less. The idea though is to eventually eliminate that debt or do what’s best from your tax advisor. Now, people say, “I’m not going to get a deduction unless I have a payment and interest.” If that was the case, I’d raise your rate to 12% and increase your deductions and you do a lot better.
We want to make sure we’re having the right advice for the right reason and we’re not concocting our own little potion here. We want to make sure you have the right result and that’s what a perfect financial GPS will do for you. You are saving your dollar. You’re not saving $0.30 or $0.50 on your dollar. I’m giving you the whole dollar. I want to give you more of your money so you can decide what it is that you want to do. It’s not a portion. It’s all.
A perfect financial GPS will help make sure you are getting the right advice for the right reasons when it comes to your real estate decisions. Click To TweetI mentioned in previous programs that it was in 1970 that the bank figured out that most homeowners stay in their newly purchased homes for about seven years. That’s where that front-loaded interest is heading. That first 5 to 7 years, you’re paying a huge amount of interest, and then it starts easing up. As I said, it gets down to about 50/50 depending on your rate. It gets to about 50/50 from 18 to 22 years in, and then it starts moving the other way. That’s what I want to talk to you about. Understanding numbers, how they work, and where your money is going.
I want to be your ally on this side. I want to be on your team and be your teammate. Everyone, if you are good with numbers, every athlete has a coach, they have somebody who helps them. The best and brightest have coaches. I want to be on your team. I want to help you understand so you can keep more money in your wallet. I was looking at an example. A $300,000 loan of 3% and I was looking at it over the 30 years. You’ll end up paying a huge amount back. It looks great, but when all is said and done, you’re going to pay $455,332. You’re basically giving another $155,000 of your hard-earned money. I want to cut it down to 1/2 or 1/3.
I’m Michael Harris. I’m not the center fielder from the Atlanta Braves. I’m President and CEO of United Mortgage Corporation of America. I’m happy to say I had that name prior to him, but that’s another story. That name is out there doing quite well there with Atlanta Braves. Pick up the phone and give us a call. I want to talk to you about your real estate life. I want to talk to you about saving money. You’re buying a home or refinancing. How am I saving? On a refinance, sometimes you are lowering your payment and maybe you’re taking that money and applying it somewhere else of need. Maybe you’re pulling some cash out for an ADU, home improvement, or other item. That happens as well.
We have to take a look at what the interest rate is now and how effectively to spend that money and not have it cost you more in the long run. These are analyses that we’ll do, understand these together, make sure it makes sense, and make sure your qualification is there as well. We’ve had self-employed individuals who are doing cashflow loans with bank statements and monies that are coming in. It works because they’re paying less based on taxes, but then they’re paying more on a monthly extended circumstance over the course of a loan.
We want to effectively look at how we utilize the money and that’s where a home equity line of credit comes in when that available money is there. We could talk about protecting your current low-interest rate, but we all talked about how that low-interest rate perhaps is actually quite high when we look at interest volume. That equity line could be utilized to help save you money. If you have a need for it right away, you need to use that and you pay level interest. That 10% level interest on an equity line is cheaper than that of 3% on an amortized loan that I told you is weighted heavily towards the front on interest. Let alone if you took a 7% or even higher, where it might be closer to 80% of your payment on interest in the initial timeline.
People will tell you, “I can afford that payment.” Great, you can afford that payment and the bank appreciates you. Your lender loves you. You don’t need that kind of love in your life. These are the things that I want to point out to you. It’s based upon what you can afford and what you’re looking to do, but then there’s a proper decision as to what’s money smart. I want to talk to you about money smart, and then we decide on what the next thing is based on need and what we can do and settle. That’s where a perfect financial GPS and a perfect decision-making process when it comes to money without emotions. We’ll give you that advice. Take it or leave it, but you can rank and understand what it is that needs to be done.
Emotion. It’s very difficult to be emotional and make a good financial decision. You need to take the emotion out until all things are said and done, then that can take place. I’m trying to put dollars and cents back into that decisionary process so you are saving your money. How much money do you need to spend? I had an individual. We were running the analysis of what they were doing on their current purchase. They were utilizing someone else in the lending space. That’s great, but based upon the loan that they were getting, they were spending quite a few thousand dollars more or were getting a slightly higher rate than they should without seeing the benefits of that. We would’ve been able to offer them something a bit lower.
It is difficult to be emotional and make a good financial decision. You need to take the emotion out until all things are said and done. Click To TweetI was told by the individual that they had very good loyalty to their real estate agent and their realtor. That’s fantastic. That’s what you want in a transaction. The realtor is the one who referred the lender to them. That’s fine too, but they understood that they were paying much more thousands of dollars. They felt bad because they didn’t want to offend the realtor by not using who they referred, so they were willing to spend all that extra money. I’m not sure where loyalty goes when it’s costing you your money and not the person or other individuals in the transaction. I know if I’m buying and doing something, there’s a price for some loyalty and getting the job done, but is it excessively? We were talking over $5,000. I’m not sure that it was worth $5,000 to do that.
On another story, we had something very similarly and I explained and showed how that worked. They went back to the other individual and that individual lowered their pricing. I find that sometimes even more offensive. The fact that they knew they were too expensive and then they lowered it and if you didn’t say anything, they wouldn’t have done it. Sometimes you have to look at those avenues and make sure that you are getting the right deal and transaction. What we do at United Mortgage Corporation of America, we will review the loan info items and the loan disclosures. We’ll do that for you. We’re closing disclosures at no charge. I’ll review those and let you know the goods, the bads, and the ugly. If you’re getting a great deal, fantastic.
I want you to understand what it is you have. I don’t want someone preying on what you don’t do every single day. You do what you do every day and you’re very good at it. I don’t do what you do and I rely on your judgment when it comes to making those decisions. I want you to make sure you understand enough that you’re not leaving money on the table. You don’t need people doing high-fives in the back room afterwards. Right now in the lending industry, people value every single transaction and sometimes they’re trying to make up the money on your transaction and that’s not right. The buck stops with me.
I’m President and CEO of United Mortgage Corporation of America and I want to make this happen for you. I want to make sure you’re spending the right money at the right time for the right reason. Whether you’re purchasing or refinancing going forward or in reverse, I want to be here for you. Whether you’re doing construction commercial USDA, FHA, or VA, I want to make sure I’m there. We’re approved to do loans in five states. California, Colorado Texas, Montana, and the state of Washington. I can help you in about 30 other states for DSCR loans, Debt Service Coverage Ratio loans.
Debt Service Coverage Ratio loans are investor loans. People who are buying investment property to gain door income, to gain rent from that unit, and to help offset and in most cases offset the principal interest, taxes, insurance, and association fees, PITIA, obtaining those items through the rent. We can do that for first-time investors as well as our larger set of investors who are doing multiple properties, multiple doors, and doing it on a continual basis, whether it’s rehab or whatever they’re doing. We are doing debt service coverage ratio loans when the property is servicing itself. That’s a great way to set up future income. We’re utilizing the perfect financial GPS. We’ve shown people how to pay off their debt in as little as four years on rental property.
We have a gentleman, the star pupil of all of this, now he’s helping other investors. He owns over 100 properties and almost 100 of them are free and clear. He’s buying more but gaining more and has rental income coming through his doors. These are things you could do with 1, 2, 10, 12. You can do this. This program or opportunity will help you eliminate that debt, create more wealth, and allow you to purchase more if that’s your desire or buy that 1 or 2. We can do future analysis and look at buying a property once a year. What does that mean? Where does it take your payoffs?
We’ve shown individuals who got down to about six years on being debt-free. After buying one property one year, another property another year, and programming and showing what it can do, all four properties can be debt-free and clear under twenty years. Not 1, 2, or 3, even 4. As it goes higher, it could even go faster because more rental income perhaps is coming in exceeding that of the obligations. In the market, interest rates are a little higher, so it’s costing or it’s allowing it to be in the higher teens rather than the lower teens or even getting to single digit in some cases.
When we’re able to take this discretionary monies, apply it towards early interest and start attacking that principle, minimizing the interest paid. You owe what you owe and what you contracted to borrow. This is not a debt settlement or debt consolidation. This is you attacking interest. Find out more, Michael@AHeadForMoney.com. You can sign up and go to our webinar, Webinar@AHeadForMoney.com.
As I mentioned earlier, we’re having a busy program. It’s fantastic. A lot of people responding. I see emails coming in. We got calls coming in. If you’re looking to purchase or you’re looking to refinance, we’d love to talk interest rates with you, qualifications, or gain your documentation. When we look at your individual status, if you’re self-employed, salaried, you have rental income, partnership income, maybe you have disability, social security income, and pension income. We’re looking to understand your source of income so we can gain the proper documentation. It’s getting the tax returns, the bank statements, the pay stubs, the W-2s, social security awards letter, pension awards letter, veteran VA loan, and perhaps getting that VA status so we can pull the proper eligibilities.
It’s doing all those items so we can get rid of those items so we know you are good, so you can make your financial and property decisions. We will offer a pre-approval once we’ve obtained documentation and understand where we are gaining that information. We’ll put together a letter in writing with a signature as a direct lender on most of our product. We’re able to then do that through our warehouse line and send you out a pre-approval so you can write an offer. If you’re looking to refinance, we’ll get those ratios in line. We’ll make sure we’re qualified and we’ll move forward.
Depending upon the type of loan you’re doing, we have individuals who are doing ITIN loans, Taxpayer Identification Loans. We have individuals that are here legally in the states without a Social Security working and filing taxes utilizing an ITIN number. We have a growing amount of investors through our warehouse line and others that are starting to do more ITIN financing, but a lot of that is limited to self-employed or strong loan-to-values. We still have and we are proud to have 11% down payment ITIN financing. We can get an ITIN loan for those individuals self-employed or salaried and we’re getting those done.
We have income requirements as far as debt-to-income ratios. We want to make sure you have good solid credit for that lower down payment. We want to make sure there are reserves and other items so we can talk about that. If you are an ITIN cardholder, you are a real estate agent or realtor who’s working with an individual who’s under those circumstances, whether they have a spouse who has a W-2. If we’re using income from the ITIN individual, it’s an ITIN loan. I want to talk to you about down payment qualifications and information. We can gain the documentation and information to gain pre-approval so you know what your client can and cannot do, what you can do, and what you’re going to your realtor about.
Many of our ITIN cardholders are paying an exorbitant amount of rent. I want you to get with your tax preparer and understand what it means if you were to purchase what the offset is, what the tax advantages can be, and see if you’d be better off. We can give information but we are not tax preparers. We’re not licensed to do so but we want to help you gain that information. If you don’t have someone, we can help refer, but I want you to be aware of those items. With any of our loans that are going on right now, on a purchase end, you need to explore your homeowner’s insurance early in the transaction. You need to understand where your property is located, what kind of insurance is being offered, what’s the timeline of getting that insurance and know the cost.
Different insurers are having restrictive abilities, either not writing, writing a certain amount, or having a larger cost to that insurance policy. We need to understand what that insurance number is to help to gain your qualification. If we put a number in and God knows how much higher, then all of a sudden you may not qualify. You need to make sure if you know what your restrictive number is that you’re not going higher. Can we go a little bit higher? No, we’re already at a certain ratio.
I had someone who spoke to their father after I gave the pre-approval. He says, “My father says he wants to get an extra 10,000.” I appreciate that, but I couldn’t get the ratios any higher unless interest rates went lower or cut insurance somewhere and still have adequate coverage in order to gain the money from somewhere else. When I give that number, I’m going to give you the highest possible qualification number and if you want more, something else has got to give. If you have a condominium or a townhome and you have an HOA, you tell me the HOA is $250. All of a sudden, you found a property and it’s $375. I just lost another $125 a month. We’re in trouble. My highest number changed.
Now, we have to look at all the variables of life and numbers to come up with where we have to go. Maybe it’s somebody paying off a debt that you had, so I eliminate the monthly payment causing that to go down and then figure that out on your own outside of it. Right now I got that debt. I’m looking at solving these equations. Once we gain those variables, then I have to make it happen. A lot of talk could be a lot of talk. People can tell you what you want to hear, but someone’s got to get to the finish line and actually get it done.
I want to give you a realistic point of view from start to finish. Whether you’re a first-time home buyer or you’ve done this many times. Depending upon when you’ve done it, it may have changed. I can help you move up, move down, move across, buy that investment property, second home, construction, or commercial. I want to help you with your real estate life.
One of the items we have not spoken about is reverse mortgages. I can help you in that arena as well. We also have a hybrid that we can do where you make payments about half of what you make now for ten years, and then it converts to a reverse mortgage. Right now, reverse mortgages in the higher interest rate environment have gotten a little bit more difficult to gain without participation. You have to have tremendous equity in your home in order to gain that depending upon the age you are at. If you’re 55, 60, or 65 years of age, it may be at a 30-some-odd percent loan-to-value. It used to be closer to 50. Now it’s in the 30s because interest rates are higher. We’re not sitting at 2%, 3%, 4%, or 5%. We’re sitting here at 7%, 8%, and 9% depending on what elective item you want to do.
Rather than have you participate with six figures or even $20,000 or whatever the case may be, we want to understand what that is and can do for you. If you have tremendous equity in a property, you’re 55 years of age and older and want to explore the idea of eliminating the need to make a payment on your first mortgage and utilize that money because you’ve worked hard for your home, now it’s time for your home to work hard for you. I can help you with that analysis and I can get that in your hands, talk to you more about it, and see what’s possible.
We’ve had individuals step forward. A few of them, it works. A few of them, it was out of sync because of the amount of money of participation to do the loan. What we are doing is we’re gaining information documentation to see if a line of credit. Traditional equity line or home equity line can be done. They have their first mortgage payment and would have an equity line payment, but we’re going to see if that equity line payment can cancel out some of the reasons why they were doing the reverse of $40,000 in credit cards or the need to buy a car. These items would’ve cost even more money or they do right now. The credit card interest is huge.
If I could take that equity line, substitute the credit card debt, and then the car loans that they were looking to get and save the money, it’s more debt, but it’s saving them money, then we’re going to look at and utilize the program to wipe out that interest much sooner. We can go further forward than stepping further back. I want to make sure we’re making these right and smart decisions on a need basis, but with $40,000 in credit cards with high-interest rates being paid, there’s a better way to get this done and then we can attack that interest. If this is what you have, if you have a car loan, student loan debt, credit card debt, or a mortgage, I want to help you and find a better way. I can do that without any obligation. Let’s have a conversation.
I have multiple conversations. It’s like, “I don’t have any debts. I just have a mortgage. I have three different mortgages.” That’s a debt. If I can show you how to take that existing mortgage, the term that you have left, and as little as a third or half the time, get that paid off without changing your lifestyle, would you want to learn more? That’s the bottom line. I want to send you some links and some items to review. I want to know your opinion. The answer sometimes is, “I don’t get it.” That’s why we need to schedule a time so you get a better idea, and then I can provide you more information as needed. We can run your analysis and show you what the program and opportunity can do for you.
We are helping people nationwide. I was on the phone in Nebraska, Texas, Virginia, Delaware, Indiana, Kentucky, Montana, and in Missouri. All of these people in various states throughout the union are individuals who are also going through the same debt concerns. Sometimes they owe a lot less, but a percentage to what they have and what’s going on, it’s very similar. If we’re looking here in California, you may have a property worth $1 million. They may have a property worth $300,000. When we look at the debt, the structure, credit cards, and how much these items mean to their budget, it’s the same. We are getting people debt-free much sooner.
(888) 543-3980, you can get information, schedule an appointment with me, or go to our webinar on Tuesday evening at 6:00 PM here on the West Coast, or you can set up a meeting directly with me. Let’s go to Webinar@AHeadForMoney.com. You could get information for the webinar and access or say, “6:00 PM is not good for me. Let’s set up a time.” I’ll get you an email back. We’ll go on the Calendly. You’ll pick a time and we’ll have our one-on-one meeting, and then we can be open to talk more specifically about what you have and what you’re doing rather than the general meeting.
That’s what I prefer, but if your availability can be a webinar where you don’t have to be on camera, you can find out information. Better yet, email me at Webinar@AHeadForMoney.com and say you want more information, I’ll send you some information so you can review it. I’ll even give you a half-hour presentation you can go review on your own and forego the Tuesday night webinar. Let me know what you think and then we can set up a time to follow up with you and I can do that personally.
As we approach the end of the month, we’re sitting here at about 62 appointments this month. A lot of people being helped. A lot of interest being eliminated. On our program, we’ve seen what $2.5 billion of interest that has been foregone. It’s tremendous. I want you to be part of that. It’s eliminating that early interest on your amortized loan that’s front-loaded. It’s making a difference in taking the different types of debt and making a dent at the right time at the right place.
Finding out your due date. Finding out when your statement date is. Making the payments on the right time. We don’t make your payments. This opportunity doesn’t do that for you. It tells you the utmost optimistic and best time to do so, but you’re driving your car. Soon maybe not, but you’re driving your car. Your GPS is telling you what to do, when to do, where to go, and all that fun stuff, but you still have to drive. You still have to drive and pay your debt. It tells you the best date and time to do so and the best way and target to aim it at, but you still need to be part of it.
This opportunity is only going to take 10 to 15 minutes of your life each and every month, which is a lot better than the spreadsheets, Excels, and everything else you’ll pull out when you handle your debt and scratch your head and not sure which one to pay first. It’s going to save you time. It’s going to let you sleep better at night. Understanding there’s a place where you can go log in, secure, no count numbers are there, your name isn’t there. It’s your secure login. Even if it was infiltrated, which it has not. If it was, this is a sophisticated accounting software. I don’t know whose it is. That’s about all that people will see.
You have everything you have for you, your spouse, and those you care about can pick it up and go and understand what needs to be done. It’s very efficient. We’ve had individuals who have no inclination or no thought of how to do technology and it’s very easy for them to follow. It’s not that sophisticated, but what it does is so sophisticated and so helpful to you.
We’ve had a busy program now. As I said, we have a lot of financial information. Our clients are moving forward on purchase opportunity, refinancing, consolidating debt, or doing home improvement. We are watching these markets very carefully so we can catch different market dips. We’re sitting here trying to capture every eighth quarter and fees that we can, so we can be in a position to save even more money with a perfect financial GPS that we speak to these individuals about. We move these into our sites on the program and taking their effective interest rate much lower.
We want to spend the right amount of money upfront. We’ve had individuals with other entities and companies, “We’re spending $20,000 in fees.” If it wasn’t your money and if it’s a seller, great, but if it’s your money, you’re paying all that interest upfront to buy down a rate and then you may not be in that rate long enough as the market may change. We got the S&P/Case-Shiller, Consumer Confidence, the ADP number, the GDP chain deflator, gross domestic product, pending home sales, jobless claims coming out, personal income and spending, Chicago PMI, and then we got the employment numbers coming out.
So much is coming out. You can stay up with all of this at YourRealEstateLife.com. You can get started at United4Loans.com. We have our Tuesday night webinars. Webinar@AHeadForMoney.com to register, sign up, and get more information. I want to be your place to go for your money and your solutions. I’m Michael Harris, President and CEO of United Mortgage Corporation of America. I want to know what kind of loan do you have.
