Mortgage Loans

Mortgage Loans

Home Equity Management – Unlocking Earning Potential

John Thomas August 14, 2007 Tags:

The explosion in the number and variety of mortgage instruments in recent decades – fixed- and adjustable-rate loans being the best known – now allows a knowledgeable lending agent to offer terms that are virtually custom-tailored to the needs of a specific borrower. While the basic 30-year fixed-rate mortgage remains the most popular type of loan, the growth in alternative instruments has given rise to a new class of professionals who can help you best manage your financial future.

Today’s mortgage consultant is far more than a bank agent or anonymous broker on the phone; he or she is an expert in the full spectrum of mortgages available. Most importantly, the mortgage consultant’s interest in your account extends well beyond the fee earned on a single loan transaction. Why? Because to properly manage the equity in your home, you will need a bi-annual mortgage “check-up” – an on-going series of regular reviews to determine whether and when to extract any accumulated equity in your home for the purpose of investing it in more lucrative, liquid, and secure funds managed by a reputable financial planner. Keep Reading...

Financial Planning Crisis

John Thomas August 14, 2007 Tags:

To any conscientious financial planner or mortgage consultant, the numbers are distressing. The federal government is so concerned that it has revamped provisions of the U.S. tax code at least three times in recent years in an effort to reverse the trend.

Recent studies have shown that most American families are now living beyond their means, cramped for cash, and few have taken adequate steps to secure their financial futures.

Only about four out of ten have established a tax-deferred savings fund – a 401(k), IRA or Keogh account – and even these forward-thinking Americans seldom contribute the maximum allowed. Today, the average balance on a 401(k) account nationwide hovers around $50,000; and half of all account holders have $15,000 or less saved against future uncertainties that often aren’t uncertain at all. Keep Reading...

Delaware Realtor Seminar – Mortgage Market Meltdown – August 22, 2007

John Thomas August 10, 2007

Free Seminar for Realtors & Financial Professionals

The Mortgage Market Meltdown  What it Means to You


The credit markets are in crisis, and the mortgage landscape is changing fast. But, ask yourself this.

Do you understand the key factors that led to the crisis?
Can you clearly and confidently advise your buyers and sellers on how to succeed in today’s market?
Do you have the right systems in place to adjust your business model for the changes yet to come?
If you answered No to any of these questions, you must attend this exclusive Mortgage Market Meltdown session and get the tools you need to stay ahead in this volatile market. This is your chance to protect your clients and your commissions! Keep Reading...

Protecting Your Credit During Divorce in Delaware

John Thomas August 7, 2007 Tags: ,

When a marriage ends in divorce, the lives of those involved are changed forever. During this time of upheaval, one thing that shouldn’t have to change is the credit status you’ve worked so hard to achieve.

Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises to pay bills, the maxing out of credit cards and a total breakdown in communication frequently lead to the annihilation of at least one spouse’s credit. Depending upon how finances are structured, it can sometimes have a negative impact on both parties.

The good news is it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain one’s credit status, anyone can ensure that starting over doesn’t have to mean rebuilding credit.

The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian, and TransUnion. It’s impossible to formulate a plan without having a complete understanding of the situation. (Once a year, you may obtain a free credit report by visiting www.AnnualCreditReport.com.) Keep Reading...

Liquidity Crisis Wreaks Havoc With Delaware Mortgage Market

John Thomas August 7, 2007

Following the well-publicized subprime crisis earlier in the year, a major disruption in the credit markets broke out on an unprecedented and historic scale this week on Wall Street. This caused major write-downs of loan and security portfolios and brought down one of the top 10 Prime and Alt-A lenders in the country, American Home Mortgage, which stopped funding $800 million in loans beginning Monday and left thousands of home buyers stranded at the closing table with their home purchases. American Home Mortgage was the in house lender for Keller Williams Realty in Delaware and this whole situation has left many Keller Williams clients without loans. This illustrates the value of using a broker who would have been able to flip a loan that was with American Home Mortgage to another lender that is taking American Home Mortgage loans that didn’t fund or close but were approved. Keep Reading...

Negative Amortization – What is it?

John Thomas August 3, 2007

Negative Amortization
Amortization is the repayment of a loan by making systematic payments over a set time period which are applied to the combined balance of the principal and interest for that loan amount. Therefore, negative amortization occurs when the payment is less than the required interest that has accrued on the loan for that month.

Summary:
Few lenders offer negative amortization loans today. Those that do have annual payment caps and lifetime interest rate caps for steady control on required payments over time. Keep Reading...

Delaware Mortgage Loans with American Brokers Conduit won’t fund!

John Thomas August 3, 2007

American Brokers Conduit sent out the word on Thursday that they were officially closed for good. ABC sent out e-mails to its brokers and posted a message on its website which shut down.  American Brokers Conduit lost its credit lines so therefore lost its ability to fund loans. The company wasn’t in trouble but when it lost its ability to fund loans and couldn’t find an alternative source of money it had to close its doors.  Several lenders have tried to take the loans that could not fund with ABC. Keep Reading...

Financial News for July 30th, 2007

John Thomas August 1, 2007

The economy grew at a 3.4% pace in the second quarter, a big improvement over the 0.6% showing in the first three months of 2007 and better than the 3.2% growth rate economists were expecting, the Commerce Department reported July 27. Also in the second quarter, core prices — excluding food and energy — rose at a rate of just 1.4%, sharply down from a 2.4% pace in the first quarter and the smallest increase in four years.

Meanwhile, consumer sentiment registered 90.4 in July, a shade below the median forecast of 91.2, but well ahead of June’s reading of 85.3, a 10-month low. The gain was tied to consumers’ favorable outlook about the economy, particularly regarding future employment and income prospects, the Reuters/University of Michigan Survey of Consumers said July 27. Keep Reading...