“Cash Out Refinance to Invest the Money in the Stock Market”

“Cash Out Refinance to Invest the Money in the Stock Market”
 
When I hear stories like this, it really gets my attention, especially if it affects a senior citizen.
 
I met with this gal in her 70’s who came with her daughter. She was a referral from a financial planner. She told me she wanted to refinance as she had been paying her interest only mortgage for 10 years at 6% interest and wanted to start paying principal and interest at a lower rate. She told me she had refinanced 10 years earlier and was convinced to take equity and invest the money in the stock market. Always shocking to me, but this goes on all the time.
 
arztsamuiShe had these funds invested with Merrill Lynch until the market began to crash and she panicked as many casual investors do and took her money out and put the remaining balance into a saving account. Even thought she had been told not to take her money out and stay invested, she felt it was better to take out what she had left, out of the $30,000 she had originally invested.
 
Merrill Lynch holds the mortgage, there are 5 more years of interest only payments and then the balance will get amortized over 15 years.
 
The bottom line, it was not wise for her to go into an amortizing mortgage at this point, as her payment would have increased, as mortgage insurance would have been required.
 
Why are there folks out there that convince folks to take equity out of their home to invest in the stock market, as that is not what a home is for or should be used for. I guess I already know the answer to the “Why”.
image courtesy of arztsamui/freedigitalphotos.net

“The Greatest Gift You Can Give Someone is a Problem”

“The Greatest Gift You Can Give Someone is a Problem”
 
So before you start thinking I have lost it, hear me out. I once got these words of wisdom from a pretty smart guy. When he made that statement, I immediately thought, how crazy that was.
 
He said, stop and think about it in this manner. Do you think that the person that shares a problem with you, thinks you have the possible answer, solution or an important opinion?
 21pakorn
I had done a mortgage for Theresa and her husband a few months ago. The goal was to lower their mortgage interest rate and at the time talked them out of including their credit card debt into the new mortgage. It always gets me uncomfortable to include these debts into a mortgage. Sure, sometimes there is no choice, but this was not the case.
 
She asked if I would coach her as to which credit card obligations to pay first in order to pay off the debts quicker. I went through that process and she thanked me. I immediately thanked her for reaching out to me. A little surprised by my comment, she said what a strange way to think about giving advice and that is when I told her about her sharing this problem with me. She thanked me and went on her way, but I received this email from her.
 
Joe,
First, let me thank you for spending the time this morning to coach me with regards to paying off the balance of our credit card obligations. All of your suggestions were great and I can definitely see a light at the end of the tunnel.
Second, I continue to understand why Paul referred us to you and will continue to tell all those who can benefit from mortgage knowledge.
Theresa
image courtesy of pakorn/freedigitalphotos.net

“Video Marketing for 32 Bentley Ave. Norwich, Ct.”

“Video Marketing for 32 Bentley Ave. Norwich, Ct.”
 
As many of you know, I am quickly becoming an advocate of video marketing of real estate. It is a little shocking as to how well the public is responding to these videos. This is another just completed home and is already under deposit.
 
We have been marketing on Craig’s list, in the body of the ad, I let it be known that I had a video of the home which I would send upon request. I wish there was a venue that would be for video only listings! In any case the response was amazing, I must have sent the video out a dozen times and the net result was a deposit on this property.
 

 

Please share your feedback, all suggestions are welcomed.
 

“Not ALL Credit Reports are Created Equal”

“Not ALL Credit Reports are Created Equal”

 

I am often faced with someone saying to me, I already have a credit report and my scores are this or that. I explain that I need to do my own credit report, as not all credit reports are the same.

 

The question is why can they possibly be different. To make this as simple as I can, lenders have very specific criteria and information that is asked of the three credit bureaus, Equifax, Experian and Trans Union. The resulting answers to this information creates a set of credit scores and these scores are what lenders make lending decisions from.

 xxstuartmiles

Credit reporting companies that offer credit reports for the public have similar criteria, but not all are the same. Also, some of these services do not offer credit scores or only offer scores from one of the bureaus. The criteria asked for by automobile dealers, insurance companies and other businesses can also very greatly. All this means is that the credit and scores might look completely different.

 

Credit scores can have huge variations, I have seen variations of 100 points. The reasons that there can be such huge variations, not all companies supply information to all three bureaus. So, when someone wants me to use their credit report to make a pre-qualification or preapproval, the simple answer is, no can do. 

image courtesy of stuart miles/freedigitalphotos.net

FHA-500 FICO PROGRAM

FHA-500 FICO PROGRAM

 

 

I wasn’t sure that I would see a lender that was willing to do FHA mortgages, down to a 500 credit score or even should, but this in now reality. Minimum  down payment is 10%, which should be higher and the interest rate is about 1% above the market rate and that should be higher as well.

 

wwstuartmilesI am not sure that I will do any loans with credit scores this low, as it just goes against all common sense. It would ready need to be a unique situation, with a large down payment, that might get me to consider doing a loan down to a 500 credit score.

 

Some lenders have a short memory or don’t have a reference point to any history regarding stupid loans that were done a very short time ago. To me, this is just looking for trouble, just saying. 

 

image courtesy of stuart miles/freedigitalphotos.net

“8 Things to Eat Before Your Workout”

“8 Things to Eat Before Your Workout”

 

Ambro441I work out on a regular basis, four to five days per week, it is just part of my DNA. This list of recommended foods before a workout is really important to take care of your body.

 

When I blog each morning, I get my caffeine with my morning tea and at least a banana. I just can’t do the coffee thing, as I haven’t had two cups of coffee my entire life. During every workout, I drink plenty of water to keep me well hydrated, as I play pretty hard.

 
One of the most popular ways to lose weight—and the solution typically recommended by doctors and fitness professionals alike—is to create a calorie deficit. This means you need to eat fewer calories than you burn off throughout your day.
A myth purports that if you don’t eat before working out, you’ll create an even bigger deficit and lose more fat. Not true.

In reality, doing so can revert your body to a starvation pattern, forcing it to hang on to extra fat to protect itself. Instead, you should provide your body with a healthy stream of fuel prior to each workout. These nutrients also help to repair muscle and promote recovery.

Here are some of the best low fat foods to eat before your workout. For digestion, it’s recommended that you wait at least 45 to 60 minutes after eating before beginning your
work out.

Bananas are full of good carbohydrates, digest quickly, and are high in potassium, which helps maintain lean muscle, nerve function and recovery.

Oatmeal is loaded with fiber that steadily releases carbohydrates into your bloodstream, supplying you with energy for your workout.

Chickpeas are another quick and easy snack—season 1/4 cup right out of the can with a squeeze of lemon juice. Although hummus is also made from chickpeas, in general the fat content from the added oil is too high for pre-workout eating.

Caffeine helps to produce energy, slow fatigue, and burn fat. A couple of espresso shots is enough—overdo it and you risk nervousness, insomnia, headaches, poor digestion, and stressing your adrenal system.

Fruit smoothies contain fast absorbing protein and a useful combination of both simple carbs (fueling the first 15 minutes of your workout) and complex carbs (kicking in after about 30 minutes).

Dried fruit is a great backup option for instant energy on the go. Again, about 1/4 cup of berries, apricot, pineapple or mango will give you a fast boost.

Quinoa provides a slow-release fuel you’ll need toward the end of your workout. Topping it off with some jam will provide you those fast-working simple carbs.

Chicken breast or tofu with brown rice in combination is ideal if you prefer working out after lunch or dinner because it will sit well with most digestive systems. Plus, the lean protein in chicken and tofu will help speed recovery. For variety, substitute rice with sweet potatoes, quinoa, other whole grains, or starchy vegetables.

And of course, always make sure to check with your doctor before starting any diet or exercise program!

 

image courtesy of ambro/freedigitalphotos.net

“This was the Featured Article in my Sept eNewsletter”

“This was the Featured Article in my Sept eNewsletter”

 

This goes out to past, current, prospective clients and referral partners. The service I use allows me to track the opened tabs and I am constantly getting about 15% that open one or more articles. It goes each quarter and will bring in 5-10 new transaction each months and is currently going out to 3,000 emails.

The key is staying on top of email addresses which can be a challenge. The system lets us know when it can’t be delivered.

Click here to have access to all of the articles and sign up to receive the newsletter.

 

you magazine sept 2014

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