Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
A lot has been going on in the lending space right now. Inflation is hard to read, recession is possible, unemployment is rising, and interest rates are a little bit different. While we enjoy the calm before the storm, what is the best course of action to take to mitigate the risks and secure your wins? Michael Harris shares some advice on how to work around these unpredictable situations in the lending space depending on the kind of loan you have. He also talks about debt consolidation, reverse mortgages, changes in capital gains, and how he fought for a client to get his money back after a loan modification did not work.
—
Looking at lending is a little different than it has been in more recent years. People are closing with 6%, 7%, and even 8% as a front number, and they’re all hedging their bets for better loan and interest rates in the future. While that’s a good item to think about, it’s also very important then on the structure of your loan. That’s because if you’re paying points, fees, and all these costs, you’re throwing money now from maybe buying a rate lower that is higher than where rates may be in the future.
When is your recovery time? How much money is too much money, and how much money is too little money? That goes into your tax conversation with your tax preparer. What kind of deductions and benefits are there? What can you do in your first year of getting write-offs on purchases versus the refinances over the life of your loan? You want to talk to your tax consultant or preparer about that.
We look at the opportunities and see rates with 6% as the front number and hope to get back to the 5% or maybe the 4%. Who knows? We’ll see how the landing goes here with the inflationary cycles, possible recession, and various things going on there. We’re still talking about the Fed wanting the past rate hikes to move through the system and create a little bit of pain. That’s a little bit more unemployment. We want to get the gauge of inflation down. All these things are coming and working hand in hand.
We’ve got a lot going on. We have the S&P and global items coming in. We have the note auctions and Case-Schiller. We have the House Price Index and the Consumer Confidence Index also. We have the FOMC meeting starting. That’s starting on July 25th, 2023. We’re looking at that meeting and we’re going to see what happens. We’re not going to find out the answer until the 26th.
Are we going to get that next quarter point? Is that 80% some odd chance? It sounds like we probably are going to get that quarter after our pause. The new pattern is to raise, pause, and then take a look at the data. It’s data-dependent. We are seeing and buying some time to allow these moves to go through the system. What we had was a very big speed in 2022. We were doing incrementals even three quarters going on and on. Speed was the name of the game.
This time, it’s a little bit slower near the end. It’s making sure that we’re not going too far. It’s turning on that water in the shower in the morning and you want hot water. You turn it on full blast and then you get scorching water so you have to dial it back. The Fed is trying to dial the water and not go full or go hot but not too hot. They’re trying to see where that equilibrium is on the faucet. It’s a longer shower. We’re buying some more time in order to see where we are to what that ideal temperature is.
As we get this prolonged further, midyear or end of the year, the mortgage market is looking for when this will stop and when our interest rates in the foresight will go down on the Fed side. The mortgage market is thinking six months from now. They’re seeing rates hitting, their highs, and maybe turning back a little bit. That’s where we see some pricing benefits. As we head into August 2023, I’m going to be looking very carefully as we have the new economic news coming out.
I mentioned that would be taking us to Wednesday, August 27th, 2023. We have initial claims as normal. There are advanced economic indication reports coming out. We have durable goods, pending home sales, and that two-year note auction. On Friday, personal income and consumption, employment cost index, and Michigan consumer confidence. All of that is happening. That will eventually take us to the last day of the month, July 31st, 2023, the following Monday, and then get the employment numbers by the end of the following week on the 4th. We’re watching these items carefully to figure out if we have a safe and clean landing or if we’re in for a bumpy line and road.
We talked about the consumer price index. It’s great, but are we looking at no major moves lower from where we are and we’re going to be sitting at 3%, or is it going to start drifting a little higher, like 3.1%, 3.2%, or 3.3%? We’re going to see. We’ll see the psyche of the Fed and where you are when it comes to all these economic figures and numbers.
—
2023 is my 37th year of helping individuals save money, whether it’s refinancing, purchasing, or getting the right loan for your unique situation. Not everyone is different. Not every loan is made the same. Not every interest rate is the same either. We talk about interest rate versus interest volume. What’s interest volume? They always told me about interest rates and APRs. They’re like, “I don’t even understand what an APR is.” That’s some of the stuff that I hear all the time.
An Annualized Percentage Rate is looking at the cost associated. When you hear an interest rate and then you hear what is called the APR, the larger the distance between those two rates means the more fees there were to obtain the loan. When you have a loan that’s called a no-point loan or a loan that’s no point and the lender is kicking in the costs and you see the rate very close to that APR, it may only take into account the interest that you owe for the per diem. That’s why it’s so close. When that spread is larger and you hear this low interest rate but the APR is so much higher, those are a lot of fees that are packed into the loan to obtain it. You’re buying down the rate with forward money or money now.
How much money you spend is very important. Are you going to get that back? When you do, how long is it going to take? What are the tax benefits of doing so? Making that number may become a little bit better. 1, 2, or 3 years, how long is it taking you to recoup? We had many individuals when the market was in the 2% and 3% that were thinking, and rightly so, “This is my last loan.” You also have to take into consideration other needs, wants, and other monies. We have people who are trying to protect the low-interest rate, but they’re in major need of other funds for other reasons. Sometimes, protecting that low rate isn’t as important as your interest volume.
Interest volume is the total interest paid on your loan. If you remember when you closed on your home loan, some of you, many years ago, had four boxes across the top. There was that box on the far right-hand side that was this big number. You’re like, “What’s that?” That’s the amount of money you were paying over the life of the loan. It is what you owe on the loan plus all the interest. It’s a very large figure, and you were told to look the other way.
On your loan statement in your closing disclosure, you will have what is called your TIP, Total Interest Paid. That is the TIP you’re paying to the bank. That is the amount of money that you’re paying above and beyond the amount that you borrowed. In some cases, that ends up being 50-some-odd percent. On a TIP, it will also include the principle that you owe. Sometimes, it’s over 100%, but you have to look at it realistically. It’s probably 52% to 54% that you’re really paying on your loan. That 3% loan is still 50-some-odd percent.
To illustrate that, how many of you have gotten a loan in the last year, 2, 3, 4, or 5? You’re not even still at 50% interest to the principal. If you look at your monthly statement or go online, you’ll notice the interest you pay monthly is higher than the principal being reduced. You’re not even 50/50 until you’re 18 to 21 years in. Some of you are still paying 83%, especially the newer loans that have closed. Those of you who closed at 3%, initially, were at about 62% interest volume.
When you have a loan, loans are paid back in different directions and styles. No loans are created the same. An amortized loan in a mortgage skews interest rate early to pay more interest, less principal, and more principal late in the transaction. Many of you never make it to 23, 28, or 29 years and see all your payments going towards principal with very little going towards interest. You loaded all that interest early. You’re not 50/50 until 18 to 21 years in.
Loans are paid back in different directions and styles. No loans are created the same. Click To TweetWhen you refinance to save money, make that lower payment, and then blow that money somewhere else and not use it effectively on other items that are more expensive, you’re starting over in the sequence of interest volume. The banks like you because you’re paying high-interest rates, 60% to 80%, not the 3% or even 6% range that we’re in now.
These are principles of money that I’d like to share with you. You do not need to become an expert. I have a perfect financial GPS program that will help navigate through the process and save you money. We’ve taken individuals from 26.4 years down to 8.1 years. I mentioned we had an individual who went all the way down to 4 years saving over 23 years in payments.
Some of you are saying, “I could do this myself. If I had that kind of extra money, I could pay this and do that.” You can get in the game, but it doesn’t mean you’re playing it and executing it perfectly. Your best ball players in any sport have coaches. They have trainers. They have people that help them be better at what they do. For that reason, they earn more money. I am looking to be that and help you to do so so you can save more money. That savings will then be wealth to create more money.
We’re turning debt into wealth, but we need to attack that interest. You’re sending money to somebody who loves receiving it. You don’t have to. We’re not looking at debt forgiveness. We’re not doing debt consolidation. You are paying what you owe. What we’re doing is attacking early interest so you can eliminate that extra money and keep it on your side of the ledger. We are looking to be debt-free that much earlier.
We’ve created nest eggs for college. Both of my children, one of them is turning 24. My daughter is 22. She’s going to be looking at going to graduate school and getting her Master’s. My son graduated college. My daughter is an undergrad. We have no student loan debt because we were able to manage, move, and handle the money effectively to have it available early in making those decisions. I want to share with you that concept. You can share it with your financial advisor and get personal recommendations. If I can show you a better way for you to accumulate wealth and eliminate debt, let me share that with you.
Send me an email to Webinar@AHeadForMoney.com. I want to invite you to a Tuesday night webinar at 6:00 PM. If you cannot attend that time, that’s fine. I can talk to you anytime that you have on your calendar that matches mine. We can set up a one-on-one meeting. If there is a program to eliminate most of the interest in your life, pay off all your debts, personal and/or business, even a mortgage, in as little as 1/3 to 1/2 the normal time without refinancing and without changing your lifestyle, would you want to learn more? If the answer to that question is yes, email me at Webinar@AHeadForMoney.com or call (888) 543-3980.
If you’re renting, that is fine. We can utilize this program for those who do not have a loan. We’ve taken individuals who have 15 years’ worth of debt and obligations and taken them down to over 3 years. Your results will be different depending on your income stream and expenses. That’s where I’ll look to gather and get your numbers. We can run that for you without any obligation. Let’s see what we can do and if it’s beneficial, you can make that decision. Let’s talk at (888) 543-3980. You can register at Webinar@AHeadForMoney.com.
We are catching up on appointments from those individuals who attended. We had a very busy follow-up schedule with individuals who are providing their information on some worksheet items and getting those to us so we can have a meeting. We input their items and get their debt-free dates, and then decisions are on the table.
We’ve had a number of individuals who knew a lot of other people that this can help, which is normal. That does happen. I like to talk to them, and some of them have taken advantage of it. Some of you talk about gig jobs. This is a non-licensed item. For referring, we’re able to include you in that participation for helping those that you care about. I’d love to talk to you about that as well. That’s coming out really nicely. It helps people reduce their obligations even faster. We’re taking debt-free dates even lower faster by creating that income opportunity.
We’ve had a lot of people move forward. We’ve had close to 70 individuals who have moved forward with the opportunity of saving money and creating wealth. We had training for the new people who came on board and additional training, items, and insights from those who have been doing it for quite some time. It was tremendous to hear the results and the excitement in the room and watch people look to move forward. That’s always exciting. It keeps you rejuvenated and moving forward in watching people save.
When I do loans or handle a purchase or refinance, watching the smile and everything occurring properly in the 37th year in the industry is always very exciting. I share with them my prior programs. I have two loans that I’m in the 4th generation. I’ve handled the great-grandparents, grandparents, parents, and kids throughout that cycle as I’ve been in the business over that timeline. When I got started in my twenties, people were my age or older. I’ve gone through that cycle of the family and then referrals. I’ve done a lot with family members but also fellow workers and friends. That’s what I’d like to try to do. It is to get you the best information possible so you can make the right decision.
Something I tell everyone is, “I spend your money like I spend mine sparingly. I want value for my money and so should you.” Listen to those words. If you don’t value the money, somebody else will and they’ll take it from you. It’s when people take that money from you that concerns me when you don’t even know you’re giving it or why. We’ve had evaluations of loan estimates and closing disclosures. Where I’ve taken a look at when the market hiccups and moves, people then take advantage of another, make that extra money, and don’t pass that savings to you.
If you do not value the money, somebody else will, and they will take it from you. Click To TweetWe’ve had times where I’ve mentioned different things and they go back to that person. I’ll evaluate any other closing disclosure or loan estimate on your behalf with no obligation. If I mention what to look for and they go back and go, “They lowered it now,” that’s great. It concerns me that if you didn’t say anything, you were going to pay more. They could have lowered it, but it wasn’t important enough to pass that savings to you. That mentality bothers me. If you weren’t doing extra and you were thinking they were watching out for you, but they were seeing how naive they can have you to do more to you, it doesn’t make sense.
There are a lot of great people in my industry but there are a lot of individuals that perhaps can’t do that job that they should be doing better for you. That’s in every business. I want to make sure you are getting as much as you can at every point of a transaction. I’m trying to save you that money and put it back in your wallet to keep it there to handle the things that you need to do to take care of yourself and your family. You work hard every single day to earn your paycheck. You don’t need a second, third, or fourth job to handle someone else’s inability to effectively handle what they should have been doing for you.
I know I’m on the soapbox, but I really truly believe that you need to make sure when you hire individuals that are looking out for you. I was reading an article about contractors. They were talking about how you hire a contractor and you never trust them. Everything needs to be in writing. Everyone’s got this cautionary tale. You always prepare for the unexpected and make sure you’re protected.
Don’t think everything is hunky dory and all happy. It’s great if it happens, but you need someone who’s looking out for you. You have that relationship and build that, and you have that going forward. You’ve got to make sure you’re aware. You can’t be an expert on everything. I can’t perform my own surgery. I’m not going to cut here in OG. That’s not going to happen, but you understand the best you can. You understand the references and what items and how you became associated with that individual.
I’ve been doing radio for many years. In the industry, I am in my 37th year. There are a lot of back-references. You can look at past programs on my website. I have probably over nine years’ worth of programs on my website that you can check out. I’m not sure I recommend to go do that. They’re not necessarily timed well, but you can see that I’ve not run, moved, or done anything weird or different. I’m here to help.
The one item that if you do your research is I was helping an individual obtain money back in a time period back in 2008. To those of you who remember, people were upside down in their homes. They were getting loan modifications. I fought for one of our audience to get back a deposit that they made for a loan modification that did not work. I fought with the vendor and we got her money back. I stepped in to help.
I found out from the real estate commissioner that I shouldn’t have stepped in, I should have let her have her own problem, and I should have known better being a licensed individual. I helped the audience get her money back but I got sanctioned for loan modification not to participate. I wasn’t doing it, but I was trying to get someone out of it. That’s my integrity in the direction that I had. I couldn’t avoid that. People will see that on licensing on 09/09 of ’09. It’s there for loan modification, but it was me arguing and fighting to get $3,000 back for an audience. We were successful, but I was told I shouldn’t have helped or participated.
I’m always going to put my foot forward to help and save money. I’m going to make sure that navigation is proper. That’s what I do. I fight for every dollar all the way through the process, whether it’s timing the economic news coming out. The Thursday prior was the highest rates had been all 2023, but by the Thursday after, we were already back to June 2023 pricing, let alone staring April 2023 in the face. Things moved quickly and I was expecting that move back.
I calmed our audience, but I also calmed our clients who had loans which we didn’t panic. There were no panic locks on that Thursday with rates at the highest they’ve been. We watched them fall Friday, Monday, Tuesday, Wednesday, and Thursday. They were up a little bit, but we followed all the way down and got those loans ready to go. We saved tons of money.
Calm our heads. Where you know your business, this is my business. I’d like to share my advice with you. Ultimately, the decision is yours. You can get started at YourRealEstateLife.com, which is our radio website, or United4Loans.com, which is our company site. I shared with you the registration of a webinar, which will help eliminate debt sooner and move your debt to wealth. You can register at Webinar@AHeadForMoney.com.
I’m going to go over various items regarding area median income loans. I have various things to talk about regarding debt consolidation and some items and takeaways that I see regarding insurance. We’re going to talk about reverse mortgages as well. I want to give you a potpourri and a little tour of what’s going on and where we’re finding some interest from our consumers and the types of loans that are getting done. We’ll explore that and much more.
—
2023 is my 37th year in the industry and 17-plus years on radio here in Southern California. I am bringing you information when it comes to making a decision when you’re financing your current property, whether it’s a residential property, an investment property, a second home, commercial, or even construction. We’re helping with these processes and making sure you’re making the right decision with the right information. That’s really important, the right information.
As a first-time home buyer, individuals have various decisions to make. You’re buying in various ZIP codes and regions. In different regions, they have what is called an area median income. There are various programs that allow little to no down or even 1% down depending upon the geographical region and income requirements for those areas where you can get some benefits. There are some grant products that we can talk about as well depending upon the geographical area. Those are things that we can look to.
FHA financing is as little as 3.5% down. There are various items that can go behind that. There are various bond items in lower down payment. It does not take 20% down to buy a home. We have individuals even on VA loans at 0% to as little as 0%, 1%, and even 3% down up to 3.5% on FHA. FHA is not for first-time home buyers only. Anyone can utilize an FHA loan for a primary purchase, 1 to 4 units.
We have individuals that are buying one unit, a single-family, or a condo. They buying even a 2-unit, 3-unit, or 4-unit property. We have individuals utilizing their veterans or VA and buying a 4-unit, living in 1 and renting out the other 3. The other three rents are covering all the mortgage and then some. They’re creating an income stream.
We have a lot of different ways that we can talk about financing but also your home purchase. It’s arming you and making sure you’re pre-approved and ready so when you talk to your realtor and your local market, you are pre-approved subject to the purchase of the set above property. That set above property, then you know what you’re looking for at that point because you know your numbers and what you’re qualified for. It’s getting a pre-approval.
As a direct lender, United Mortgage Corporation of America wants to give you that approval. We want to make sure that you have the right information. It’s getting the right information from you because what we get is the results that we then spit back out. We want to make sure we have the right information and not be a surprise. We don’t want that. We want to make sure we’re accurate and we are ready for the process.
Part of the timing that’s become very important is your insurance. You want to make sure you’re prepared on your homeowner’s insurance depending on the region you’re looking for, whether it’s hillside, fire area, flood area, or wherever that may be. You want to make sure your carrier is still writing insurance, let alone there are no limitations about how much they can write.
One carrier has limitations on how much they can write per month. Two others have pulled out. Others are going to be more expensive. If you have homeowner’s insurance, a home, and renewal dates, you want to be ahead of that and understand if your policy or premiums are going to start shooting higher. We’ve seen anywhere from 40% to 100% increases in insurance policies on the homeowner’s insurance side. That’s going to go along to all insurances perhaps, so you want to keep an eye on that. Make sure you’re prepared. I don’t want you to have sticker shock when that happens on your renewal.
You should be in communication with your insurance carrier and insurance provider, making sure you’re covered correctly. You want to make sure you’re on time for your payments because you don’t want to be canceled. Some of them aren’t rewriting, so you really want to make sure you’re there. You want to shop around but don’t take too much time. You want to make sure you hit a few, get a few, and get an idea and a reasonable expectation. You could look at raising your deductible perhaps, but you want to make sure it doesn’t violate the terms of your lending agreement.
You want to make sure you look at what you paid for your home versus the cost of rebuilding your home. Normally, your insurance is your loan amount guaranteed replacement. It usually has a writer for that. You don’t necessarily need to be over-insured. You want to see if you can put together your auto insurance with other items that you have, whether you have your home security. You could look at your credit records. Some will look at that as well. Sometimes, you’re looking at various items in consideration of your property as well as various things and risk factors that you have.
Be prepared. Don’t think of it as a last-minute item that you’re doing the last week of a transaction anymore. As a loan goes and if we’re tight to qualify, that monthly premium can make the difference in getting the loan or not. We used to have a good formula. What happened was I found that formula a little bit out of whack from the days when I got started in the business some odd years ago because of where some of these rates have gone.
Be prepared. Make sure you have a qualified insurance professional. If not, I can help refer depending on the market that you want to be in. We’ll see what we can do to help. You may have an insurance carrier who won’t write your homeowners but wants to retain the life insurance of your car, but they’re not altogether. All of a sudden, those premiums moved. You have a whole new situation going on. You want to be very careful.
There are other loans that we’re doing. We’re doing a lot of consolidation of debt, but you have to be careful with what you’re consolidating. When I talked about interest rate versus interest volume, you want to make sure you’re making the right move for the right reason. Sometimes, your credit cards are up at 20%. God forbid I’ve seen a few 30 percenters that in 1899, it used to be.
When you look at the simple interest that they are, that rate isn’t as high as you think when you compare that sometimes to an amortized loan, but those rates are. What you’re trying to do is free up cashflow in order to then attack interest. A lot of times, that’s when an equity line comes into play. Even when you have an equity line sitting at 8.25% on the prime plus, even if it’s prime plus 2% and being over 10%, 10% is better than the 60-some-odd or 80-some-odd percent that you’re paying as interest volume on your home loan. Even if you’re a 50% and you’re halfway through your loan or then some, you’re still paying more on that amortized loan than you are on that equity line.
A lot of times, the equity line can be really helpful to you to balance things out in order to buy the time to knock off interest debt. We want to try to get that lower, perhaps improving your credit score, giving you more abilities to access it, and showing that to gain that better score and then come up with that better payment plan. That’s attending that webinar that I mentioned to you and having a perfect financial GPS program.
Send an email to Webinar@AHeadForMoney.com. There’s no obligation. It’s at 6:00 PM on a Tuesday evening. I want to send you the invite so you can attend. I’ll be there. You don’t have to be on camera. I want to know what you think. If I can show you a way to reduce or eliminate 1/3 or 1/2 the time without refinancing and changing your lifestyle, you’d want to learn more about paying off your debts and creating more wealth. Send an email to Webinar@AHeadForMoney.com or call (888) 543-3980. Take advantage of this. It’s good information. It’s going to get you on the board. It’s going to eliminate some debt, free up some capital, and create some additional wealth. I want to see what I can do to help.
We’ve had individuals who own rental property who participate also with the opportunity. They’ve been able to obtain additional rental and doors for additional income and rent. We were able to utilize debt service coverage ratio loans which take your net operating income over your total debt service to get that ratio. What we’ll do is have the rent offsetting the mortgage. You have rent coming in or extra money coming with the cashflow based on utilizing this program. We got people paying off rental properties in four years.
The idea of an investor isn’t necessarily, “Let’s pay off the loan.” You want to leverage your income. Instead, we have a lot of people that are buying additional doors and creating additional cashflow. By accident, the loans get paid off anyway. That sounds like a good accident to happen. We have individuals who own over 100 properties and they’re looking at 80-some-odd of them free and clear. I want to talk to you. Let’s talk at (888) 543-3980.
An investor does not necessarily focus on paying off the loan. You want to leverage your income. Click To Tweet—
There is a lot of activity. There are a lot of people looking to attend the webinar. Email us at Webinar@AHeadForMoney.com. That’s on Tuesday evening at 6:00 PM. We look forward to seeing you there or at least seeing your name there. You don’t have to be on camera. It’s good information for you to observe and obtain. That’s one hour’s worth. If it makes sense to you, I’d like to talk to you further one-on-one. I look to get your debt-free date. We’re taking people’s debt-free date from even 30 years down to the low teens or even single digits.
You ask, “How is that done?” Every loan is not created equal. Every loan is set up differently. Some loans are simple interest. Some loans are amortized interest. Amortized interest loads a lot more interest upfront to pay a lot less interest later on. It may have a low interest rate attached to it, but that’s like a mortgage. A mortgage will have heavier interest upfront and less interest on the back. You have a set interest rate, but it’s scaled through an amortization schedule.
The way we’re looking to attack your debt is think of compounding interest. Do you remember that exercise when you were a kid where they stack up money and how it compounds, and someone starts later on what would be better? The one that had a little bit of money compounded. It was huge. It’s the power of compounding interest. Think of it in reverse by eliminating debt. We’re going to orchestrate that for you and illustrate that for you. It’s very easy to follow. You don’t have to be a mathematician.
You don’t have to be a financial genius. You have to follow a perfect financial GPS like when you’re in your car. You’re following your navigation device, whether it’s on your phone or on your car, and you’re following directions. You may miss that turn, but then it corrects you and gives you navigation to get back on course. You have choices. You don’t have to listen to everything that this financial GPS will do, but it will give you the proper guidance and direction. You could do future purchases as far as what ifs about a car. Let’s say you finance it for 72 months and under the program, it may pay it off in a year and two months.
You can project saving money for vacations so you have money on hand. You are making sure that you have that available. You can run any isolated report on any given credit card, income stream, source, any obligation you may or may not have, or whatever it is. You can run a separate bar, graph, pie, and all the different charts. You can create those with a few strokes of the keys. These things will be invaluable for you and your business moving forward, especially when you get to the point where you’re debt-free.
As a financial individual and looking at numbers that I enjoy doing, I put them in the middle of my desk. You may push them off the left or right. I put it in the middle of mine. I looked at this and could attack these items fairly well as I’ve always had. I’ve always been ahead of the game. I probably finish in the top percentile on that game when it comes to money. I looked at what was going on at the ease of this process and opportunity and the fact that I was probably leaving a few years on the table.
If you looked at my monthly obligations and times it by 12 and then times it by 3 or 4 that I was leaving on the table, it was a considerable amount of money. I may have been able to attack and do what was right. I was in the game. I was on the sidelines, but I wasn’t necessarily finishing on top. I was in the higher percentile, but $30,000 or $40,000 additional that I couldn’t mimic was very important. At least it’s important for me and my family.
I’ve been able to run results and see $150,000 or $400,000. We had an individual who owned many real estate properties. Those were rentals, multiple mortgages, and multiple items that were on the obligation side. We took that number over $1 million. The more items that you have, the more opportunity to save because there are more mistakes being made. It’s not that they’re mistakes, but there’s a better way. I want to show you that. Let’s talk at (888) 543-3980. You can go ahead and register for our webinar. I’ll get you the invite. Email us at Webinar@AHeadForMoney.com.
We’re about information, education, and obtaining results. I want to write your next home loan, whether it’s a purchase or refinance, you’re going forward or in reverse, it’s a conventional loan or a government loan, or it’s commercial or construction. I want to help with that process. I also want to make sure you’re set up properly to succeed and you’re not just paying a debt. You’re not choosing door number one, which is the bank’s plan. I want to give you a choice to reduce the debt and create wealth. I want to give you a choice of door number 2 and door number 3. They’re not off limits. They’re available to you. Let me save you money and get you on that path. Let’s get the right loan for your unique situation. Let’s talk at (888) 543-3980.
I’ve been doing this and I’m in my 37th year and 17-plus years on the radio. It’s my goal to get you the information you need to make the right decision. Many people regret it and say, “Next time.” If you’re not doing this and this is not what you do every single day, you don’t know when your next time is. You got different rules and different things going on.
In the years that I’ve been in the business, I saw double-digit interest rates. When I got started, everyone said I missed the refinance boom in the ‘80s. I was sitting here doing loans at 12%. They were saying, “It was 18%. We had a refinance boom.” A refinance boom is at 12%. We saw the refinance boom hit 10%, 9%, and then even out a little bit. Variable-rate loans became important. Annual adjustables were starting at 4%, capping out at 11% and 12%. We were going through those cycles.
What I did at that time was I took a lot of my clients on no-point loans that were starting in the 4% that adjusted to the 6%. Based on market condition, I was able to take that no-point and even no-cost loan and shove them right back. We had average interest rates in the 4% and 5% even though rates were higher because we took advantage of stability, market, and conditions. We were able to stay at certain levels.
We took the savings that were perhaps being accumulated and paid down principles sooner rather than starting over. We had lower obligations and were able to muscle those down as we went. Many of the borrowers that I’ve had over my life have retired their debt or moved on to other areas or other aspects. We looked at things in a different way.
This perfect financial GPS will do that for you and put you on a campaign to reduce your debt even faster, making the decisions that were not available because the technology was not there at that time. We were so happy to have a pager working. God forbid it had a digital display. Do you remember the fax machines that weren’t plain paper and you had to put heavy things on both sides before the paper rolled back up? Some of you are saying. “Fax machines? What are those?” We were getting off the freeways making calls from our pager to go use a payphone. Some of you are like, “A payphone? What’s that?” These are the things that occurred. We’ve moved down the path to better ways to do things. This is that better way to handle your finances.
When you say a tablet, you think of possibly a computer. You’re not thinking of an etching board sitting here with a rock and a stone and a caveman sitting there etching on a tablet. A tablet has a different meaning. I have a financial GPS program that gets you to your destination in the most efficient way possible with all variables included, including predictive analysis, graphs, and charts for understanding. You can design it for different emphasis. All of those items are inputted.
I sat down with a number of people moving forward. We had a spreadsheet that we had them fill out with all their income, mortgage, insurance, taxes, whether they’re impounded or not, their other obligations, whether they are insurance, car insurance, or life insurance, and credit card obligations. We went to gas, electric, water, power, trash, charity, and all the different items. It could be car payments, if any, or student loans, if any. That’s another whole topic. Who’s getting the government loan going away or not? Who’s not and whose payment is well over $1,000? That’s another whole issue of qualifications.
We take all of that information and input it. It’s junk in, junk out. We want everything correct. We’re then able to compute that debt-free date based upon the computation that’s working 24/7. I want to illustrate that for you. Take a moment in time. Call (888) 543-3980, or you can decide to come to our webinar. Email us at Webinar@AHeadForMoney.com. You can register. Show up at 6:00 PM Tuesday evening in the comfort of your home or wherever you want to be. You don’t need to be on camera.
Let me know how you thought it was and if it could work for you. I would love the opportunity to have a separate meeting with you after another day to then answer questions, provide some information, and look to gather and gain your documentation on one page. I don’t need account numbers. I don’t need a lot of things. It’s those that are ins and outs so we can accurately compute that together. We can illustrate that on a screen together and get to that destination and start you on that saving path. Let’s talk at (888) 543-3980.
My bottom line is to save you money. If I’m saving you money on your existing home and I miss the mortgage, that’s fine. Let’s handle that debt effectively and allow you to have comfort and less stress. If I’m here and you’re thinking about buying a home, I’d love to get you pre-approved because that’s what I do. I own a mortgage banking company. I want to help you with that process.
United Mortgage Corporation of America is approved in five states. We’re approved in California, Colorado, Montana, Texas, and the state of Washington. In 30-plus states, I can help with what is called debt service coverage ratio loans. We’re doing FHA, VA, and USDA. We’re doing conventional or high balance and jumbo. We’re doing forward and reverse. We’re doing construction and commercial. We’re doing private money as well. We’re doing bridge loans and other items that are of need.
I want to be your resource when it comes to financing real estate. If you’re renting, your landlord loves you. You do not need that kind of love in your life. You need to make it stop. You’re probably paying more for rent than you could for owning a home. We need to take a look at credit, understand your qualifications, and get you on the right path. Some of that is reducing debt and obligation, improving that credit score, and having a better percentage of what you owe to what your limits are. We can get you down that path very quickly.
If you're renting, your landlord loves you. You do not need that kind of love in your life. You're probably paying more for rent than you could for owning a home. Click To TweetI have a young lady from 15.3 years down to 3.4 years. That’s her path to her debt. She was so excited. She called me telling me, “The car is going to be off at this time and then this is going to happen.” She already knows the days in which everything is happening and is looking at those milestones as they’re coming. She told me something else. She was like, “I have an extra $500 over here.”
All of a sudden, she’s saying the word extra that she never was able to say before. Different decisions could be made for her, her family, and things going forward. All of a sudden, it’s a lot brighter of a smile that you hear on the phone. It makes a big difference when that obligation and that stress level is removed. Sometimes, it takes somebody else to focus on you and get you out of the fog. Let me try and be that person for you. Let’s talk at (888) 543-3980.
Something that I saw that was going on and I’m waiting to see how that’s going to fare is they’re talking about changing the capital gains. They’re talking about changing that $250,000 exemption to a $500,000 exemption for joint filers that’s been in place since 1997. They’re talking about maybe raising it up. That’s going to allow some people that are sitting on homes that have tremendous capital gains maybe to sell and create a little bit more inventory. We need three times the inventory to be a normal market because we’re in trouble.
If that were to happen and they raised it from $250,000 to $500,000 and $500,000 to $1 million, that could be a large difference. That’s what’s out there. It’s called More Homes on the Market Act. It’s done by Jimmy Panetta, a Democrat from California, and Mike Kelly, a Republican from Pennsylvania. They’re crossing the aisle. We’ll see if there are any wheels or wings on this and see if it moves. That could be a big difference.
If we were moving in concert with inflation and timing from 1997, those numbers to be equal to $250,000 and $500,000 should be $650,000 and $1,300,000. The idea of $500,000 and $1 million is lower than what the market should make it go, but any difference could be really large in that decisionary process for those Baby Boomers who still have property. A lot of the problem with their tax base is where are they going to go. If they have the capital gains on top, how much extra do they owe without the home improvements?
You already have the mansion tax that’s going on since April 2022 here in California. For some of you, it doesn’t hit you, but you’re looking at various percentages that are being taken out of that sale based upon certain price levels of sale. We can go into that another time or off the air. We have individuals that are getting hit for larger percentages. It’s having the right professional on your team, whether myself or United Mortgage, handling your home loan and financing there and your end result. It is having that real estate professional or that realtor who knows your market, the ins and outs, and the general trends, and knows how to close a negotiation.
You must have the right professional on your team to handle your home loan and financing. It is about having a real estate professional who knows your market and how to close a negotiation. Click To TweetWe do not list. We do not sell. We refer for that process professionals in your local market who can get the job done. We are here to close your home loan. We are making sure that loan is designed with you in mind. No loan and no interest rate are the same. It’s designed for your interest volume, the life of your loan, and your finances in particular. I will look to gather and gain your documentation to come up with the right ideas for you. It’s been my pleasure to be with you. Until next time, what kind of loan do you have?
