Mortgage Minute Newsflash

Some important dates that need to be understood are as follows: If you are going to take a FHA loan you must apply and have a case number pulled before April 5 of this year to avoid the increase in the MIP premium from 1.75% to 2.25%. If you wish to take advantage of the first time buyers credit you must be in a contract for a house before April 30th of this year and close the transaction before June 30th. Last but certainly not least the Federal Reserve has previously announced that they intend to stop buying mortgage backed securities at the end of March of this year.

I've just released a highly informational and entertaining CD (abridged) version of my forthcoming book, "A Multitude of Minutes". We'll soon be set up to accept orders online, but in the meantime you can send a check or money order for $9.95 (includes shipping and handling) to 15300 Ventura Blvd. #315, Sherman Oaks, Calif. 91403. We'll send your CD(s) immediately.

Are you tired of throwing your money down the drain?

A Picture is Worth a Thousand Words. Everyone has heard that before, but how many of you have seen my picture? Not a picture of me, but a picture that of how much money you save by moving to a shorter term mortgage. Take a look... 

If these statistics are new to you, you are not alone! Most of my first-time clients don't realize they have options.

For thirty years, I've been educating homeowners on their real estate financing options, helping them to make good decisions so they might sleep a little more peacefully knowing their money is well-placed and growing for them.

One thing I know for sure. Whether you are a first time home buyer, have credit or debt issues, or consider yourself a seasoned real-estate "pro", your financial future should determine the mortgage you choose. It's imperative that you know where you're going so you don't end up where you just might be heading!

Variable or Fixed? (Not even your mother knows you that well!) Begin by answering following three questions:

    1. How long will I be in the property?
    2. What is my earning potential over that period of time?
    3. How much do I have in cash reserves?

Once you have a clear picture as to the direction in which you wish to head, you need to analyze your personality. Can you live (and/ or sleep) with a variable loan or a short-term fixed that becomes variable? While it may be your comfort level that decides, there are some important things you should know!

30 Years is a jail sentence, not a loan term! Now that you know that it takes approximately 21 years to pay off just half of a 30 year loan, you may also be interested in knowing that during that time you could have completely paid off a 15 year or a 20 year fixed while saving hundreds of $1000s of dollars!!!

Whether you are interested in paying off your house or not, my guess is that you ARE interested in saving money!! If you take one of the plans that I have mentioned above and start paying yourself instead when the mortgage is finished, you will have saved at least twice the amount of your first mortgage in a 10 year plan, 1.5 times the amount of your first mortgage in a 15 year plan, and double your money with a 20 year plan while your friends are still paying their 30 year fixed.

An alternative to accumulating the money would be to use that money to purchase other homes and increase your opportunity to create more wealth with your next home. If you are considering your first home purchase, you should know that owning a home is an excellent start to solving a lot of your financial problems, and I have always recommended taking the plunge! Once you have accumulated this valuable asset, you can begin to use it towards reaching your ultimate goal...Financial Freedom!!

After all, when it comes to dollars, it's not what you make that matters; it's what you keep and how you use what you keep!

That said, we have found that many of our clients focus on their loans being fixed for 30 years for security reasons while they could be saving thousands of dollars by considering their other options.

The last couple who said their house was sacrosanct finally took my advice and took out to a variable four years ago. They paid off more of their loan in the last four years than in the previous 10 years of a 30 year fixed, all while cutting their payments in half. While they were ecstatic at the results, they did it because they had to, not because they wanted to.

The Most Misleading Concept in the Mortgage Industry. Borrowers are inundated with more mortgage information now than at any other time in history. The temptation to cut out the "middle man" is undeniable. In a world where all borrowers were equally qualified the same, all properties were the same, and all loans were identical, that might be a feasible solution.

In the real world, however, a borrower is a composite of a credit score, liquid assets, and monthly earnings. A property is a composite of its size, type, land, condition and neighborhood. The right loan must be compatible with ALL the conditions.

A rate is not the determinant factor in every case. Knowing some of those rates does not insure the best loan at the lowest interest and least overall cost for the borrower.

Most people who attempt to find financing on their own do not do as well as those who work with qualified experts. In fact, not only can it end up costing them thousands of dollars in up-front costs but it can end up costing them tens of thousands of dollars in the long run.

It's like reading about a great restaurant dish on the internet, then going home and trying to cook it. Sure, it may taste okay, but you've missed out on the real flavor if you don't have the right cook!

You don't go to the doctor and tell him what's wrong and what you need to have done. Likewise, please allow us to diagnose your financial condition and make our recommendations on how to give you a better financial future.

Are you ready to get started?
Click here to fill out our short form to find a mortgage consultant.

We sincerely look forward to the opportunity of serving you,

Roger Schlesinger
"The Mortgage Minute Guy"
(866) 288-0088