(302) 703-0727

(302) 703-0727

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...

Fully Indexed Rate on ARM What is it?

John Thomas August 12, 2007 Tags: , , ,
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Fully Indexed Rate – What is it?

When you get an Adjustable Rate Mortgage (ARM) you get an initial rate that is fixed for a certain period of time say five years for example. After the first five years of the loan, your interest will begin to adjust based on two factors: your index and your margin.  The mortgage interest rate that your mortgage loan will adjust to after the fixed period is called the Fully Indexed Rate.

Fully Indexed Rate is the combination of the index the mortgage lender has chosen plus the fixed margin the mortgage lender places on the mortgage loan. This is often different than the initial rate offered, or the start rate.  The fully indexed rate will only fluctuate at the adjustment period of your ARM, and may be subject to caps that determine how much they may increase within a certain time period. Keep Reading...

Margins on ARM Loans – What are they?

John Thomas August 12, 2007 Tags: , , ,
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Margins on ARM Loans – What are They?

Margins on an Adjustable Rate Mortgage loan is the amount a lender adds to the index in order to determine the mortgage interest rate at each adjustment period on the loan.  The margin is assigned by the mortgage lender at the time the ARM loan is originated. It cannot be changed once the mortgage loan closes as it is set for the life of the loan.  Call 302-703-0727 to apply for an ARM Loan or for more information.  APPLY ONLINE

Margins on ARM Loans – Example

Margin example, if the index of the ARM loan is at 5.0%, and the margin was set at 1.5% when the loan was originated, then the fully indexed rate is 6.5%. The margin is fixed for the life of the loan so if the next adjustment period the index is 4.5% then the Fully Index Rate will drop to 6.0% and the monthly payment would be reduced as well. 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...

Feds Leave Key Interest Unchanged on Tuesday August 7, 2007

John Thomas August 7, 2007 Tags:

The Federal Reserve commented on the troubled economy but still kept the Fed Funds Rate unchanged at 5.25%. The Feds noted that Wall Street Turbulence such as Hedge Funds closing, Main Street Credit problems, and a nationwide housing slump pose increasing risk to the economy.  The Feds are still concerned about inflation so they have decide to hold the Fed Funds Rate Steady rather than lower rates to help bail out the slumping housing market which is a drag on the rest of the economy

The Feds have kept this key interest steady for almost a year after raising it for two straight years to fend off inflation.  In turn commercial banks prime interest rates also stayed the same at 8.25%. Keep Reading...