June 19th, 2009
On 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”
Tags: APR's, Borrowing, Debt, Financing, Interest Rates, Loans, Mortgages, Refinancing
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June 19th, 2009
Today 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
Tags: Financing, Home Purchasing, Mortgages, Refinancing
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June 17th, 2009
That’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
Tags: Borrowing, Credit, Debt, Financial, Financing, Free Books, Home Purchasing, Lending, Loans, Mortgages, Refinancing, Saving Money
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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?
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June 3rd, 2009
APR 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.
Tags: APR, Borrowing, Debt, Finances, Interest Rates, Loans, Mortgages, Refinance, Refinancing
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May 29th, 2009
Although rates are rising, it may not be too late to save money! Even at mid 5%, we are still around historic lows and many can still benefit from the current rates. Do a quick check by comparing your payments and term on your current mortgage to the payments for a refi at a equal or lesser term to what is remaining. If the payments stay the same or reduce and the term reduces, it could still make great “cents”! The key is the savings must clearly outweigh the loan costs within 12 months. Everything after that is savings! As for purchasing, with the new tax credit of $8,000, these are still potentially great rates for purchasing. I’ll give more tips soon on other ways to take advantage of the rates to create great savings.
Tags: Home Purchase, Interest Rates, Mortgages, Refinance
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May 26th, 2009
Consider this simple truth—all debt is debt. As I mentioned in chapter 1 of my book “Navigating the Mortgage Maze”, we tend to compartmentalize our debt between personal debt and mortgage debt. The reality is all debt is an encumbrance in our lives; it is money that is owed and must be repaid with interest. Any debt can result in a lien on our house if we do not pay it. Debt is dangerous!
When was the last time you sat down and added up every debt you have and every payment you owe? When was the last time you compared those debts and payments to every asset you own and every dollar you make? For most of us, we go through life, month after month, simply paying the bills as they come in and hoping there is money left at the end. This is no way to manage your debt. We must take a proactive approach.
The very first step to financial freedom and debt elimination is to completely understand your debt. This means knowing the who, what, when, and how of your debt: who you owe, what you owe, when it will be paid off, and how you will accomplish that. Start by analyzing and totaling every debt and payment you have to determine your total liabilities. This is essential to debt elimination and wealth management.
Tags: Budget, Debt, Finances, Financing, Loans, Money, Mortgages, Navigating the Mortgage Maze, Savings
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May 20th, 2009
Here are some pointers:
1. Be sure the company is licensed (if required by state).
2. Ask for testimonials that you can verify yourself by phone. Then actually make the phone call! 
3. Evaluate the company’s experience and knowledge.
4. Look for experience, credentials, certifications, training, etc., in the individual you are considering.
5. Request written letters of endorsement that you can check for authenticity.
6. Investigate the individual or company for credibility (number of years in business, number of employees,Website, annual reports, online search for negative postings, Better Business Bureau, state regulatory authority, etc.).
Do you have any other suggestions that would help others? Leave a comment!
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May 19th, 2009
Get them answered this week by three financial experts during WMBI Radio’s Financial Summit. This event features Randy Fairfax, Dave Szafranski and myself. You can ask your questions ahead of time, then they will be answered and discussed by the panel. I hope you’ll join us! Here is the information:
When: Thursday and Friday, May 21st and 22nd from 3 – 4pm CST
Where: Chicago: 90.1FM, HD1
If you are not in the Chicago area, you can listen live online at WMBI.FM
There are two ways to submit your question:
1. Email your question to ptc@moody.edu
OR
2. Leave a voicemail on our listener line at 312-329-3000
Tags: Finances, Financing, Moody, Mortgage Tips, Mortgages, Navigating the Mortgage Maze, WMBI
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May 14th, 2009
June’s Good Housekeeping Magazine (available now in newsstands) has a feature article on “8 Ways to Save $10,000 This Year”. Tip #3 is from an interview I did with them to “Refinance Your Home” (Page 93). With rates low and the new 105% loan-to-value government refinance program out there, a $225,000 refinance can save well over $200 per month (and reduce the term if done correctly). Read more and get the other 8 tips at In this month’s Good Housekeeping Magazine article on “8 Ways to Save $10,000 This Year” (June edition available now) – See page 93 or go to http://www.goodhousekeeping.com/money/budget/money-saving-techniques-2
Tags: Borrowing, Mortgages, Refinancing, Saving Money, Savings
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