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Archive for June, 2009
Free Book Download – Navigating the Mortgage Maze
Wednesday, June 24th, 2009Never Ask For or Buy Just the “Interest Rate”
Friday, June 19th, 2009On my monthly radio broadcast on Moody Radio Chicago today (WMBI – 90.1 FM) we talked about the recent drop in rates again. A couple of key tips regarding interest rates:
- It’s Not the Rate You Need to Know: When applying for a loan, never ask for just the “interest rate”, but always ask for the APR. The APR is inclusive of fees and cost and is the ACTUAL cost for the loan on an annual percentage basis (if quoted accurately). The interest rate alone does not. Therefore, you may get quoted 5.00% interest, but after fees and costs have an APR of 5.50%.
- Check the APR: Once quoted an APR, always check it against a mortgage calculator (these are available free online at places like bankrate.com) to be sure it is accurate. All you need is the loan amount, payment and term to check. If the loan amount, payment and term you put in do not match the APR you were quoted, then you were misquoted and need to find out the truth.
- The Low Rate You See is Not Necessarily What You Get: Don’t be fooled – the low rates you see advertised are for the very best qualified. This means 720 to 740 FICO or higher in today’s market, with verifiable income, maximum 80% loan-to-value and low debt ratios. As your credit score drops and your equity usage or debt ratio increases, your rate most likely will too! Also, there are lots of additional “premiums” for things like cash out, condominiums and the like.
- Rate IS NOT the #1 Consideration in Many Cases: As important as rates and APR’s are, what’s more important is what you get for the rates and APR. You can get a great rate and a bad loan or a competitive rate and a great loan. It comes down to looking at more than just the rate and payment, but also: the term, the tax costs, the fees paid, the purpose for the loan and the all-encompassing cost or benefit. In other words, if you got a greta rate, but extended your loan term, increased your taxes, paid unnecessary fees and did not capitalize on the best loan for your situation then it was not beneficial (this happens the majority of times in a rate and term refinance). But if you cut your payments, terms, taxes, reduce debt, save money up front, improve your financial position and negotiate fair fees, you have really done yourself a great service!
To learn more, get my book at www.mortgagempowered.com or at any major online book retailer like Amazon, Barnes and Noble, Christian Book Distributors, Books-a-Million, etc.
Let me leave you with this nugget of truth from Proverbs 24:3 – “By wisdom a house is built, and through understanding it is established”
Added Tips on Fees From Today’s WMBI Radio Appearance
Friday, June 19th, 2009Today on my monthly Moody radio segment on WMBI Chicago (90.1 FM) there was a question regarding specific Freddie Mac fees posted on the truth in lending documents. Although these particular fees seemed legitimate, it is always good to check out ANY “agency” fees (Fannie Mae, Freddie Mac, FHA) by contacting them direct (via website or phone) to be sure they are standard, customary and legitimate. Loan fees are many times negotiable and some are simply illegitimate or not necessary. You can also compare with a second lender. This is why investigating and comparing lenders are critical to getting a great and fair mortgage loan! Learn more or download my book “Navigating the Mortgage Maze” for free (for a limited time) at www.mortgagempowered.com
Rates Are Going UP – But You Can Still Save Thousands AND Get Hope! – Find Out How by Downloading My Book for Free for a Limited Time Only!
Wednesday, June 17th, 2009That’s Right – even though rates are going up, I can teach you countless ways to still save tens of thousands of dollars, get out of debt quicker, reduce your taxes, improve your finances and even share TRUTHS FOR REAL HOPE IN YOUR LIFE (See the Final Chapter)! YOU CAN DOWNLOAD MY ENTIRE BOOK FOR PREVIEW TODAY, BUT ONLY FOR A LIMITED TIME! Tell your friends, write a review, Buy a copy for yourself. Check it out at www.dalevermillion.com
Navigating the Application Maze
Tuesday, June 9th, 2009
Starting the application process can be very overwhelming. Begin with these questions. In my book I go into more detail but this will get you started on a good foot!
Here are four key questions when applying:
1. What is the maximum LTV (Loan-to-Value) available based on my qualifications (for refinances or purchases)?
2. What is the minimum down payment required based on my qualifications (for purchases only)?
3. In addition to thirty- and fifteen-year terms, do you also have ten-, twenty-, and twenty-five-year loan terms?
4. Do you have both fixed- and adjustable-rate programs available?
Ever wondered what APR really means and really is?
Wednesday, June 3rd, 2009APR is the actual interest paid for the amount financed annually, based on the monthly payment and the loan term.
The key term in this definition is amount financed. Today’s Truth in Lending disclosures use two terms on the form: amount financed and loan amount:
1. The amount financed is the amount you actually borrow before the costs and fees. Simplified: it is the amount of money you actually get.
2. The loan amount is the amount you actually owe after including the costs and fees financed in the loan. Simplified: it is the amount of debt you actually borrow.
D I D Y O U K N O W ?
The APR calculation was established by the federal government’s 1968 Truth in Lending Act to help borrowers understand the true cost of their loan. The intention was to create a simple indicator to help compare loan offers between different companies and protect consumers from being taken advantage of or fooled. The reasons for the APR calculation were all good. Unfortunately, the reality is that it has not accomplished its purpose. The vast majority of consumers do not understand and are confused by the APR.
