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It’s that time of year when everyone is wearing something new (well almost everyone) as Santa has fulfilled his rightful duties and delivered his packages with glee. We all have eaten too much, or again, most of us have eaten too much, and now, we are fat and happy and waiting for that magic countdown signaling the start of another year. Heck, I am going to take my lights down tomorrow as we are heading to Las Vegas for the ...

Being a business owner, my year is through, mainly because there isn’t a lot I can do late in October that will work fast enough to make a difference this year. That is why I am in meetings for the next month with my consultants and staff to provide a framework for next year. As the old cliché goes ” I want to hit the ground running” in the New Year. Does that mean I am planning my own personal ...

As we reach the holiday season, I can think of nothing more appropriate or important a gift than to give someone the gift of knowledge. Therefore, my simple offering for all of you is more information on the mortgage industry. I am hoping my gift can help you understand this simply complex industry that often has such a profound effect on most people’s lives.

It is simple because most borrowers opt for a 30 year fixed, shop for what they consider ...

From the number of emails I get, I realize that people are really confused about interest only loans, pay option arms, and most of all negative amortization. It is important to understand the difference as there are both opportunities you might want to take advantage of as well as risks you may be exposed to of which you may not be aware. So let’s start the discussion with negative amortization.

Negative amortization occurs when you are not paying enough in your ...

Not too many years ago, a half-century or so, housing wasn’t anything else but a place where people lived. Those who could afford it purchased a house, those who couldn’t or didn’t see any reason to buy a house, rented their homes. It really didn’t matter because prices were pretty stable and people weren’t really thinking “investment” when it came to houses. This all changed with the end of World War II when the G.I.’s came home and wanted to ...

As a former member of the BC club (bad credit) I speak with too much experience. During the younger years of my being, with children and debts growing hand in hand, I was up to my eyebrows in financial problems. It culminated when I sold our house to buy another one that had more room for the children and my nerves, and we couldn’t get a loan until three weeks after the old house had sold and closed (I wasn’t ...

If life is a restaurant menu, then dessert is as much a part of life as broccoli. When I was young, dessert was everything – the culmination of life’s banquet. When I was in college, dessert was the only thing, as life was a happening and it was happening now (What was the future, anyway?). When I matured and was considered an adult, dessert was what one had at birthdays and all the holidays. Now dessert comes, and as good ...

The title, “Little Things Mean a Lot” was a great song in the 50′s or thereabouts, and has a special place in most of our lives. When I was busy opening the presents in my house on a warm winter morning in late December (I was raised in Southern California), I remember my parents telling me “great things come in small packages”. I needn’t have to tell you that most of my packages were small, and most of my brother’s ...

So many people do not understand what the equity in their house is all about. I admit that is a bold statement, but one that I know from experience is true. Every day I discuss people’s finances with them and they fail to take into account the value of their equity. Let me make some simple comparisons. If you had a CD in the bank, that would be an asset that is easily converted to cash. If you had stock ...

In my never-ending quest to educate the public about the mortgage industry, I have set down some subjects that are definitely either unknown or misunderstood by the average borrower. This is the third report on items I consider important if you are either holding a mortgage or about to take out your first mortgage. Here is what I am going to cover:

1. APR: Annual Percentage Rate, which was set up originally for autos and doesn’t do the job it ...

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