While I am a citizen of the United States of America, I firmly believe in the principles of free trade and capitalism. These practices involve the market correcting itself without the influence or involvement of the government. However, I am willing to bend on these principles if you are willing to accept my proposal on how to spend the $1 TRILLION in your economic stimulus package.
Here are my terms:
1) Payoff every single mortgage (1st, 2nd, etc) on a primary residence for every single citizen in the US. The mortgage(s) must be under the current conforming loan limits. There are no other restrictions to this. I think that this is more than fair since you and your buddies influenced FNMA and the rest of the industry to write those laws and practices that have put us in today’s financial crisis.
2) Any left over monies must be placed into safe investments (not controlled by the government) and used to increase the benefits of our armed forces. This is not limited to current active duty personnel, but also for veterans. Our troops are overseas dying, so we can forfeit our rights of capitalism that your administration is going see fit to ruin. The least we can do is give them something more for their families that are still stateside waiting for their loved ones to come home.
Now, let’s look at what doing these two simple things will do for the American economy.
1) Paying off all mortgages under conforming loan limits for primary residences will:
* Free up a majority of Americans monthly expenses. In many cases, Americans will stop living paycheck to paycheck. People can start investing again. Disposable income increases which increases spending. Spending means more demand. More demand means more supply. More supply means more work. More work means more money. More money means more spending. Do you see a cycle starting to form here, Mr. President?
* With spending on the rise, these so called “Big Corporations” that you and your predecessor see fit to “Bail Out” will automatically be bailed out by doing what comes naturally under a capitalistic society. Survival of the fittest in a business sense. If they cannot succeed in a booming industry, then perhaps they should fail.
* Bailing out “Big Corporations” does nothing for the average/common American. While the companies get fatter on our tax money, we Americans continue to suffer. Giving the monies to the grassroots of our country is the only way to go… Besides, doesn’t one of our governing documents state “We, the People of the United States of America…” and not “We, the ‘Big Corporations’ of America?”
* Also, with all the mortgages paid off, banks would have money again to lend. With the ability to lend again, mortgages outside the conforming limits might be able to refinanced at lower rates. This helps those that would still have mortgages. And let’s not forget to mention that investments tied to mortgages will be improved due to the fact that bad mortgages do not dominate that market anymore.
2) You promised to pull our troops out which helped lead your victory to Presidency, but you neglected to say that you were bringing our troops “HOME.” What you really meant to say was, “I am moving our troops to a new war front.”
* You got millions of families and loved ones excited that the war would soon be over and that everyone would be reunited. But that was a lie, nay a misrepresentation.
* Money cannot buy happiness, but it can serve as retribution for your errors. You see if the average American does something wrong, he/she is sued by the person that was wronged. Settlement usually involves the wrongdoer paying money to the victim. In this case, we are finding you wrong and forcing you to pay out to those you victimized.
As you can see, this is a very simple plan. And it is one that millions of Americans will accept. Sure, the citizens that have mortgages greater than the cutoff limit will be upset. But remember, the needs of the many outway the wants of the few.
Sincerely,
Jason the Mortgage Broker
PS. My consulting fee should you implement this plan is 1% of the stimulus package.
Yes, I just said Option Mortgage… but I did not say Option ARM Mortgage.
I have talked to clients about this in the past and 9 times out of 10, my client has listened to my suggestion. And I am willing to bet that in today’s economic situation, they are thanking me a million times over.
So, what is this Option Mortgage? Quite simply it is a 15-year Fixed Rate Mortgage (FRM) with a 30-year FRM payment option. Whaaaaat? Whenever I have a client that wants a 15-year FRM, I suggest to them a 30-year FRM that has NO PRE-PAYMENT PENALTY and give them an amortization schedule with a 15 year payoff.
As of lately, the rate for a 15-year FRM has been almost the same as a 30-year FRM. So there is not a real savings in the interest rate like what used to noticeable. Since the rate is the same, the only difference is the amortization of the loans. The longer the term, the lower the monthly payment.
If a person takes the 15-year term, they are locked into that payment for 15 years or until they refinance or sell. If they take the 30-year term, they are locked into that payment for 30 years or until they refinance or sell. However, with the 30-year term, they can pay the 15-year term payment without penalty.
Now, let’s look at someone that took out a 15-year term FRM a couple years ago. Their payment is fixed at the higher monthly payment. Fast forward to today… money is tight. Their employer is doing some cutbacks. They did not get that Christmas or year end bonus. Whatever it is, money is tight. They still have to make that 15-year payment.
Now, let’s put that same person into a 30-year term FRM. They have been making the 15-year payment for the past couple years. Money is tight. Unlike the option above, this borrower can make the lower payment of the 30-year FRM until money starts coming back in when they were able to make the 15-year payment.
As you can see, this is a very safe option because there is no change in interest rate. There is no negative amortization. There is no real change in monthly payments. Everything is fixed. The only difference is that a borrower is acting upon their right to payoff the mortgage early without penalty and has the peace of mind knowing that if they cannot afford the payment for the early payoff term that they are not forced to make that payment.
To learn more ways on how you can take advantage of a FRM, call today.
There are no more excuses to buying a new home. Home prices are down. Mortgage rates are down. And financing is coming back strong, so much so that 100% financing is still an option. If this is still not enough for you, here are some other benefits to this program:
No Mortgage Insurance
No Reserves
No Minimum Credit Score
Not Limited to First Time Home Buyers
Unrestricted Gifts
If appraisal is higher than purchase, you can finance the closing costs in to the loan
If this is still no enough for you, then may be you should reconsider how serious of a home buyer you are…
With any mortgage program, there are requirements that must be met. The first is income eligibility. Here is a simple chart to see if you qualify:
CURRENT TABLE
County
1-P
2-P
3-P
4-P
5-P
6-P
7-P
8-P
All counties except those listed below
49,950
56,600
63,700
70,750
76,400
82,050
87,750
93,400
Clay, Duval, Nassau, St Johns
51,400
58,750
66,100
73,450
79,350
85,200
91,100
96,950
Collier
56,200
64,250
72,250
80,300
86,700
93,150
99,550
106,000
Gadsden, Jefferson, Leon
50,000
57,150
64,300
71,450
77,150
82,900
88,600
94,300
Palm Beach
55,700
63,650
71,600
79,950
85,900
92,300
98,650
105,000
Okaloosa
50,850
58,100
65,400
72,650
78,450
84,250
90,100
95,900
Broward, Pinellas, Monroe are not eligible
PROPOSED TABLE
County
1-4 PERSONS
5-8 PERSONS
All counties except those listed below
70,750
93,400
Clay, Duval, Nassau, St Johns
73,450
96,950
Collier
80,300
106,000
Gadsden, Jefferson, Leon
71,450
94,300
Palm Beach
79,950
105,000
Okaloosa
72,650
95,900
Broward, Pinellas, Monroe are not eligible
For each person over 8-persons, add 8% of the 4-person limit.
NOTE: This is not an income increase for the 4-person and 8-person households. It simply removes the tiers for the 1-3 and 5-7 person households. It does have the effect similar to an income increase for those families in the 1-3 and 5-7 groups.
Reminder: These are NOT gross income limits. THE TOTAL ADULT HOUSEHOLD INCOME CAN BE MUCH HIGHER THAN THE “ADJUSTED” INCOME LIMITS IN THE TABLE. Deductions are allowed for: child care (12 yr old or less) to allow employment of the adult; $480/annual for each non-applicant under age 18; $480/annual for full time student over age 18; and $400 if anyone is elderly or handicapped. If the gross adult household income is less than the limit, you are good to go. If the income is over the limits, use the adjustments. Make it simple by using the web calculator at http://eligibility.sc.usda.gov Click on “single family housing” under “Income Eligibility”.
In addition to income, the property must be eligible. By using the same link, you can find out if the home you are purchasing is in fact eligible. However, counties like Lake, Collier, and various other counties in the interior, northern, and panhandle of the state are 100% eligible. Counties like Lee and Palm Beach are only partial eligible. The best way to determine is not to guess, but to enter in the exact address of the property.
With these two main hurdles overcome, there are only two minor conditions left. The first is that you must be able to afford the home. The debt-to-income ratio requirements are more than fair and easily obtainable for most home buyers. The second is that even though there is no minimum credit score requirement, you must at least have good credit.
So there you have, the last of your excuses has been dispelled. Home buying is possible and affordable. Now, get off you duff, call your Realtor, and start shopping for your new home. And while you are shopping, contact Knightlines Mortgage Services, LLC to reserve your funds for our 100% USDA Home Loan. And to build off of Nike… “Just do it… TODAY!”
I’ve lost track of how many times people have mentioned the ‘horrible taxation’ in Florida as a reason not to live here!
I have some great news.
I don’t know how many of you have head of The Tax Foundation - a non-partisan tax research group based in Washington D.C.
In their own words:
“The mission of the Tax Foundation is to educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government. From its founding in 1937, the Tax Foundation has been grounded in the belief that the dissemination of basic information about government finance is the foundation of sound policy in a free society.”
According to a study that they just released, Florida actually has the FIFTH BEST tax climate in the country.
In arriving at this conclusion they looked at (at least):
Property Tax
Individual Income Tax
Corporate Tax
Sales Tax AND
Unemployment Tax
While it is true that Florida does have high PROPERTY TAXES, in actuality they are the 19th best in the country - certainly lower then New York, New Jersey, Massachusetts, Connecticut, Vermont and Rhode Island. So for those of you in the Northeast part of the country, you had better come up with a better excuse!
In addition, Florida is one of 7 states that DON’T have a STATE INCOME TAX.
Also while several states have INCREASED their ESTATE TAX RATES over the years, Florida dosen’t even have one.
If the misconception about the tax situation in Florida has kept you from buying here, I hope this will help to clear things up. We still have a strong Buyers’ Market and prices are low - but they won’t be that way forever…………
Palm Beach Gardens is well known for it’s fantastic golf and country club real estate - however, don’t make the mistake of thinking that’s all the city has to offer!
There are a lot of people who would love to live in Palm Beach Gardens and take advantage of everything it has - but they just aren’t into the country club lifestyle or the prices. No problem-
One great choice would be Siena Oaks. Started around 1990, Siena Oaks is located on the east side of town. It’s entrance can be accessed from either Prosperity Farms Road or Burns Road.
While we can all agree that the phrase: ‘You have to see it to believe it’ is a bit over-used, it really does apply in this case. Siena Oaks is close to all of the major draws to the area - shopping, the beaches, dining, parks, public golf, etc., but you really are in your own world when you drive in.
It’s a very quite area with only about 299 homes. It’s a great choice for small families and first-time homeowners. For those of you with kids that might be worried about cars, there are no through roads which drastically cuts down on traffic.
Most of the homes do have pools, but there is also a community area with a large pool plus 2 tennis courts and a clubhouse that can be rented for private functions.
There are currently 12, no 10 homes listed - 2 just went contingent - ranging from $239,900 to $463,500.
All of this plus low HOA fees and great maintainance. Call me at 561-282-7406 to see any of the listed properties.
A friend of mine - Chris Griffith from Life in Bonita Springs - pointed this video out to me late yesterday. It’s a piece from 60 Minutes that goes into detail about the recent housing crisis and the titanic stupidity of the sub-prime mortgage situation that caused it all.
It really is an eye-opener.
As a country, if we didn’t learn our lesson from this recent love affair with greed, I can’t imagine what will happen the next time.
Embraces the craftman style with all the new ammenities
2005 Custom built home embraces the Arts and Crafts style of the twentieth century while offering the amenities of a modern home built today. 2165s.f. under central air and heat with three bedroom, two bathroom , formal dining room, living room, office/den, separate laundry room and breakfast nook in kitchen . Three bay garage with a 24+ L.F. long bay for boat/workshop area. Small deck with private hot outdoor shower off of master bedroom porch. Screened back porch off family room is 212 S.F. and leads to a 16’X26’ open wood deck. Surround sound, security system, irrigation system, wood and tile floors thru out this wonderful open floor plan with split bedroom layout. These are just a few of the amenities this charming home has to offer. Please call 352-551-0345 with questions or to set up an appointment for a viewing of this beautiful home.
Property For Sale:
$399,000 Single Family Home
3 Bed
2 Bath
Parking: 3 Car
2165sq/f under air Sq. Ft.
Built 2005
Commission: 3%
East Lake Estates
480 East Collins Street
Umatilla,
FL
32784
When was the last time your bank guaranteed that you would be approved for a loan or a mortgage? If you were denied, did they work with you to get you to where you need to be to be approved? Or did they just send you a letter in the mail? If this applies to you, then you should know that we will get you approved.
How can we say this? Well, here is how the program works. If when a borrower first applies for a home mortgage loan (refinance or purchase) and they are not approved (or bankable), we will begin our part of the program - The KMS Plan.
The KMS Plan: We will review the borrower’s credit in detail to determine the best method of improving their situation. We will also work out a budget for the monthly expenses to payoff debt, save for reserves, increase down payment funds, or a combination thereof. Each month for 12 months, we will follow up to make sure that the plan is being followed.
Now, if the KMS Plan is followed exactly as it is laid out to the borrower, we are guaranteeing that the borrower will be elligible for a mortgage loan after the 12 month. If for any reason the borrower has done exactly what the plan detailed and they are still not bankable, we will continue to work with the borrower until the loan is approved AND we will do it for free. That means that if the borrower upheld their part and we failed at ours after the 12 month, we will not charge a broker fee or yield spread premium when we do make it to closing.
If you or anyone you know is a candidate for this program, please call 352-308-7219 to get enrolled today or click here to complete the application.
When applying for a commercial mortgage, there are many financing options that are available. Just like with residential loans, commercial borrowers can choose between fixed rate or adjustable rate, construction or permanent, and even interest only or fully ammortized. However, it is not just that simple.
There are many factors that come into play that are similar to residential mortgages, yet different from them. Some of these items DSCR (or Debt Service Coverage Ratio), Rent Roll, Operating Expense, and many more. Property types plays even more important role than in residential financings. With residential where it is limited to primarily Single family, condo, 2-4 plexes, townhouses, and mobiles, there is a whole slew of property types that most lenders place into categories. The categories are based on property risk and business risk… multi-family is very low risk for a bank versus a restaurant which is very high risk.
Over the course of this series, I will cover some of the common terms/jargon of the commercial mortgage lending world. I will also discuss different property types and typical qualifying guidelines for financing the property (IE down payment, loan term, etc). SBA loans will be briefly discussed, as I will create a separate thread on this topic in the future.
Wow, the year has really gone by fast here at the Holiday Inn Express & Suites on the Scenic Dead River!
We have stayed very busy improving our product for our guests and visitors.
Just this month, we completed installing brand new carpet and padding in all of our guest rooms.In addition, all of our rooms are now equipped with brand-new Dove Quilt-Top Beds.
Our guests have been enjoying our weekly manager’s reception on Tuesday nights, where we offer complimentary wine, beer, and appetizers in the evening for our guests.It also gives us a chance to discuss with our guests what we have done right, and how we can improve.It helps us feel a little smarter, too.
How many of you know that our frequent guest program, Priority Club, is the largest frequent visitor program in the nation?The points you earn for stays never expire, and can easily be converted into airline points, points for shopping clubs, or even for stays at competing hotel chains!
The new hot breakfast bar has been a hit with our guests, and some of them are even ordering the products to use in their homes.Delicious, yet easy and quick to prepare is something that everyone can appreciate.And, the breakfast is the envy of our competitors.Not just a continental bagel with some cream cheese anymore.
A bit more of news – Nate’s Riverdeck is next door, and has officially opened under its new name.The new menu is truly delicious, and there is live entertainment on the weekends.Come give it a try!
When you get a chance come by and visit if you haven’t in a while, and remember, we offer friends and family discounts, as well as Chamber of Commerce discounts for those of you who are members.They are easy to qualify for.Just call directly to the hotel at:352-742-1600
Here’s to a spectacular August, and you can look forward to Staying Smarter with Less Stress at the Holiday Inn Express!
A Proposal to Spending Obama’s Stimulus Money
