Archives For Mortgage

Without you the bank wouldn’t be in business.

1) Character – You actually knew the banker. Local lending.

2) Collateral – Car, house, 4 wheeler, tractor, etc.

3) Credit – Payment history. 3 X 5 cards at Sears when my wife was young.

4) Capacity (paycheck) – This is the real asset. The real collateral.

Closing:
The real asset is you. No paycheck, no monthly payments. They’re not in the car business or the 4 wheeler business. They’re in the business of collecting interest payments from you. Selling the installment contract to someone else who collects the interest payments and getting paid a fee.

Bank doesn’t want empty houses they have to pay taxes/insurance/maintenance on. They want interest payments, your rent payment for the use of their money.

Resource:
You know where to find me. Podcast page. email or voicemail.
Coaching is available.

I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight

Debt Shepherd 2017, All Rights Reserved

How collections affect your credit score.

1) My collection.
Medical, $2 or $3k. No credit score issue. Couldn’t get checking account.

2) Client’s collection/derogatory credit.
10 days PTC, Soft pull. Re-pull. 620 min for home loan.
642 to 500. Mortgage loan denied. FHA loan, $2,000 or less total don’t have to be paid off. Over $2k, use 5% of balance as mo pmt, or show payment history.

3) Pay something each month.
Negotiate lower balance if you can pay in full. Get it in writing before paying in full. Get paid in full letter in writing. Send paid in full letter to credit bureaus (resource).

Closing:
Collections are like an anchor keeping you stuck in one place. Baggage. Eventually roll off after 7 yrs? Imagine being 1 collection away from getting a home loan. One 90 day late student loan away from getting a home loan.

Resource:
Equifax.com, Transunion.com, Experian.com.
To send paid in full letter. Don’t assume who you paid will report to credit bureau.

I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight

Debt Shepherd 2017, All Rights Reserved

Tale of Two Houses

We interview Jon White. He shares the mistakes he made when buying his first house. And he shares how you can avoid doing the same. He’s all about giving you a new perspective on your money.

Jon shares with us:

1) Who he is. Where he works. What he does.
2) Why he wrote the book A Tale of Two Houses.
3) How the book can help you.

Resources:
Jon White

Get Your Mind Straight. Get Your Money Straight.
Debt Shepherd 2016, All Rights Reserved

Rates

In the audio (click above) we cover:

What is the interest rate?
Who decides?
Difference between the interest rate and the REAL interest rate.
3 ways to save interest paid over the life of the loan.
Why do we borrow money from strangers?

Resource:

The Man Who Quit Money

Get Your Mind Straight. Get Your Money Straight.
Debt Shepherd 2015, All Rights Reserved

Interest

What would happen if you pre-paid your debts? How about saving thousands & thousands of dollars and several years of your working life?

1) Who can prepay?
2) What if I can’t afford it?
3) When can I prepay?
4) Why would I prepay?

$100k loan, 4% interest, 30 yrs.

$2,000/mo net/take home income.
10% = $200/mo prepay

$34k interest saved.
Turn 30 yr mtg into a 17 yr mtg
13 yrs of your life saved.

Give us a call on our voicemail listener feedback line at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

Debt Shepherd, 2015 All Rights Reserved

Interest

You’re borrowing the purchase price and you’re borrowing the interest paid. At the same time. Two loans, not one. Look at your amortization schedule. A – Mort – ization – Mort means death.

What is interest?
Rent for the use of the bank’s money.
They didn’t have it to lend anyway. You created it when you signed the promissory note.

$100k loan @ 4% interest for 30 years. You pay back $100k.
And you pay back $72k interest or rent for the use of the banks money.

$72K divided by $100k = 72% interest, not 4% as you’ve been lead to believe.

You don’t question it because the monthly payment fits into your comfort zone.

So you borrow $100k and payback $172K. You have to earn $172k plus (for example) your 25% tax bracket. You have to earn $172k plus $43k to payback the loan. That’s you earning $215k to pay back a $100k loan.

Check out the blogtalk interview with host Rick Fiorio:
The Right Side of Things

Give us a call on our voicemail listener feedback line at 615-200-7189
or drop Greg an email at: greg [at] debtshepherd [dot] com

Debt Shepherd, 2015 All Rights Reserved

mortgage

What does the word mortgage mean? It may surprise you.

Mort –
1) a note sounded on a hunting horn when the a deer is killed.
2) killing

Gage –
1) a token of defiance; specifically: a glove or cap cast on the ground to be taken up by an opponent as a pledge of combat.
2) something deposited as a pledge of performance.
3) pledge, stake, or risk.

There isn’t anything about those word meanings that give me a good feeling. How about you?

Give us a call on our voicemail listener feedback line at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

advice_for_web

Listener appreciation – John from NYC sent us an email.
Rebecca from Germany sent us an email and some voicemails.

Mortgages –

I owe $64k. Have ability to owe $54k now and $44k in a yr.
If we prepay principle balance we can be mortgage free in 3.5 yrs.
Wife will retire in 2-3 yrs.

Do we stay and pay down the mtg? or
Do we move and borrow $100 to $125k?

Here – clean, safe, quiet. Pmt less than $800/mo.
2 BR – 1.5 BA, 1,200 sq. ft. condo

There – clean, safe, quite. Pmt same
3 BR – 2 BA, 1,300 sq ft. / .50 acres, fenced yard, add 40 min. to work commute for a total of 1 hr. drive to work each day.

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

There is no need to copyright truth.