“Interest Only Doesn’t Mean You Have to Pay only Interest”
A few years ago, I did a refinance for clients that were referred by their financial advisor. They wanted to refinance their existing mortgage, which I did, at 4% interest rate. They also wanted a $100,000 home equity line, which I got them from the same lender.
At the time we did the home equity line, they only wanted to take out $50,000 and their plan was to pay it off within two years. Sometimes plans just don’t work out.
I got a call from them asking if they could refinance the two loans into one loan, in order to lower their mortgage payment. They currently owe $180,000 on the first which is a fixed rate at 4% and the home equity line is currently at 3.5%, but the payments each month are set up as interest only payments.
I told them that refinancing the two mortgages into one loan would be a larger mortgage payment, so they won’t be able to accomplish the goal.
I recommended that they continue making their first mortgage payment and pay as much principal as possible each month on the home equity line.
I got an email from them, thanking me for my advice and wished they had contacted me sooner. Hopefully they will follow through.
image courtesy of ddpavumba /freedigitalphotos.net
“You Just Never Know When Someone Special Comes into Your Life”
As many of you know, our daughter Jill has been transitioning out of the mortgage business and into the travel agency business. She is doing amazing and sometime in 2015 will be devoting 100% of her time in that business.
She already done a few destination wedding, land vacations and a has a bunch of 100 plus person cruises set up for 2015 one of which is called Psychic & Beyond. I never realized how big these event can be, sorry I digress.
As a result of Jill’s marketing she was contacted by Gail, also a travel agent who wanted to piggyback and add a number of people that had cancer or were survivors. Gail has undergone cancer treatment and felt that many could benefit from the Psychic & Beyond cruise.
There have been many conversations and now Jill and Gail (who actually work for the same company) are working on a cruise totally devoted to individuals with cancer or survivors and their families.
Jill sent me with video about Gail. I was not in good shape after I watched it, but thought it was important for the world needs to see it.
In case you want to reach out to Jill, her email address is firstname.lastname@example.org
“My Client was Charged with 12 Counts of Larceny”
The lender that I am working with sent me a news article about this situation. I immediately called the clients to find out what happened. He immediately said it was not big deal, as he will be going to court in a couple of days and the matter will be resolved. What do you mean no big deal?
So, I listened to his story, it kind of made sense that he wasn’t concerned about the problem, but I explained that the lender may not want to go forward with the million dollar mortgage that we are requesting. I had him prepare a detailed letter of explanation, which I sent to the lender.
The lender told me they want to wait until this matter was resolved by the courts and then they will decide if they will continue moving forward with this loan.
Unfortunately my client still doesn’t understand, so finally I explained to him that the lender has the right to not be willing to lend based on his arrest. Can’t believe he doesn’t understand what the big deal is, but we’ll have to wait for the court to decide this matter next week.
Never a dull moment in this business, this is now the second time an issue like this has occurred before a closing. I give all my clients a list of do’s and don’t’s, I’m going to add to it, “Don’t get arrested”
image courtesy of sakhorn38/freedigitalphotos.net
“Next Time I will Pay More Attention to Your Referral”
I cringe anytime someone tells me they are going to use an agent that has other full time work. I just received an email from a client that just went through this kind of situation. I can assure you, she won’t make this mistake again.
When I did her mortgage application we discussed other services that she will need, so I sent her referrals for a home inspector, insurance agent and mover.
Thank you Joe.
I received all three of your referral earlier today.
When you handled the preapproval a couple of weeks ago, you asked me if I needed a referral for a Realtor. I told you no, as I work with someone that has their real estate license. I should have listened when you said, this doesn’t sound like a good idea. It was HELL for the last two weeks.
So, thank you for coaching me through the offer process and thank you for doing my mortgage application yesterday. You made the application pretty easy, actually much easier than I expected.
I will look forward to referring friends and family to you, that is the least I can do.
image courtesy of jscreationzs/freedigitalphotos.net
“I Filed Bankruptcy in 1989”
I’m sorry, I couldn’t help it, I had to ask. Tell me how long you have been telling this story? He told me that he didn’t understand my question.
OK, I get the filing BK part, but that was in 1989 and that wiped out, all of your outstanding obligations, which meant you had no outstanding debt, so how did it happened that your credit is as poor as it currently is?
He then went on for the next ten minutes talking about all the bad thing that has happened to him. It just sounded like someone was always giving him the business, unfortunately I wasn’t willing to buy his story.
He wanted me to do a preapproval for him, but I already knew what this picture was going to look like. I did run the credit, low 500 scores, so I’m sorry, but I can’t do a preapproval for you.
I want to spend my energies on someone that is committed to making a difference in their lives.
image courtesy of stuart miles/freedigitalphotos.net