Buy Now, Gloat Later!

Rare 4 bedroom, 3 bath in South West Lubbock

This home sports over 2500 square feet, 2 living areas, saltillo tile in kitchen/dining area, and well maintained interior and landscaping.

This home is Melonie Park South so you have access to the swimming pool!

This home won’t last long, so text/call me for your very own private tour (512) 799-0133

Cheers!

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Good Debt vs Bad Debt: What’s the Difference?

If you’ve ever struggled to keep up with all those darn payments-including the credit card and car payments-you’ll want to tune in to this important article…

More and more people are getting swallowed up by debt. I’m sure you’ve read and heard many of the statistics and stories in the news. One of the keys to financial independence is to get rid of your bad debt and acquire good debt.

Bad debt is debt that makes you poor, such as credit card debt, car loans, etc. – this is consumer debt. Good debt is debt you acquire that actually works for you. The best example of good debt is a mortgage loan on a rental property that throws off positive cash flow every month. Good debt is money that you borrow to purchase assets that put money in your pocket.   images

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5 Steps to Eliminate Your Bad Debt and Acquire More Good Debt

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Step 1 – Stop accumulating bad debt. Whatever you purchase via credit cards must be paid off in full at the end of each month. No exceptions.

Step 2 – Make a list of all your consumer (bad) debts. This includes each credit card, car loans, and any other bad debts you have acquired.

Step 3 – Refinance your mortgage to consolidate your high interest debts. Chances are you’ve built up enough equity in your home to pay off your high interest credit cards and consumer loans.

As your mortgage advisor, I can help determine how much equity is available and how much you can save by increasing your mortgage balance to pay off bad debts at lower interest rates.

Step 4 – Explore the option of using additional equity in your home to increase cash flow. After you consolidate your bad debts you may still have equity left over to invest in a secure cash flow producing asset.

For example, the equity could be invested in a good growth stock mutual fund (check with your financial investment advisor) that earns 9% interest. With a home mortgage interest of 5% the net return on this investment would be 4%. That return can be left to compound or withdrawn every month.

Step 5 – Pay yourself first.  Put aside a set percentage from each paycheck or each payment you receive from other sources. Deposit that money into an investment savings account. Once your money goes into the account, NEVER take it out, until you are ready to invest it. Now – instead of just paying creditors – you’re paying yourself for only one type of purchase: assets that give you positive cash flow each month. By adopting this as a consistent habit you will be out of the Rat Race faster than you ever dreamed!

We look forward to hearing about your success stories as you apply these financial principles to your life….Dedicated to your success.

Lubbock (806) 300-0899

Austin (512) 799-0133

Dallas | Fort Worth (512) 799-0133

9 Genius Closet Hacks

The Hardworking Home: Explore these ways to store your clothes, shoes and accessories to make the most of your space

Lubbock | Austin: Whether your Texas home is spacious or practically pocket size, the clothing closet is a space that can nearly always use some improvement. Here are tips for adjusting the layout, choosing the right closet components and finding extra space.

Hardworking space: The clothes closet.
The challenge: When the clothes closet is working well, it makes getting ready (and getting on with your day) a breeze; when it’s not, mornings can become a hassle. These ideas can help you find the right storage and organizing plan for your space.
Good to know: It helps to measure your stuff before investing in a closet system — that way you can be sure you’re getting exactly the right storage for your wardrobe.

Mortgage: How to Use Your Equity to Accumulate Wealth

If you’re like most people, you may think paying down your mortgage by making extra principal payments is the best way to achieve financial security. But this isn’t usually the case! By paying off your mortgage, you’re eliminating one of your best partners in achieving financial security–Uncle Sam’s mortgage interest deduction. Plus, the equity in your home pays zero return and isn’t easy to access if you need it in a hurry, especially in today’s mortgage environment. A better strategy is to keep your mortgage balance as high as possible and put the equity into secure, collateralized liquid investments that pay a return. This is known as equity repositioning, and it offers several advantages: Money hand out

* You have quick access to money.

* Your equity generates income instead of just sitting there.

* You earn substantial tax deductions which can be

used to increase your investments further.

* You can save even more tax by investing in tax-free retirement accounts.

* You’ll eventually save enough to fund your retirement AND pay off your mortgage!

For a free analysis to see if equity repositioning is right for you, give us a call today at (512) 799-0133

Better Places to Stash That Soap

Every bathroom needs soap next to the sink. But soap dishes can become unsightly and a breeding ground for soggy scum. The dispensers that liquid soap are sold in aren’t particularly sturdy or attractive, either. So what’s the stylish and stable alternative?

There are plenty of attractive soap dispensers out there; you simply want to match the design to the style of the room. Or find an unconventional container and adapt it to liquid soap. Or consider some ways to get that bar soap off the vanity, so the only things you’ll need to clean are your hands.

7 Things Banks and Mortgage Lenders Won’t Tell You

#1. You Don’t Need a High Credit Score.

A minimum credit score of 660 is required by most mortgage lenders in today’s housing market. This is a far contrast from five or six years ago when anyone with a pulse could qualify for financing. This minimum is necessary to comply with guidelines set forth by Fannie Mae and Freddie Mac, the two largest suppliers of home mortgage funds, and is not a problem if you maintain a high score. But if you’ve experienced credit problems in the past, there’s another option that your lender may not tell you about. Bangster

FHA mortgage loans, which are insured by the Federal Housing Administration, do NOT require a minimum credit score; it is various mortgage lenders who set their own credit score (and other criteria) requirements (a.k.a. investor overlays). This is perfect if you’re in the process of rebuilding your credit. You can qualify for a home loan at a competitive rate with less-than-perfect credit. Plus, the down payment requirement on an FHA mortgage is less than a conventional mortgage.

#2. Loan Fees and Rates Can Vary Among Banks

The good faith estimate a lender provides once you’re approved for a home loan details the various costs, such as the credit report fee and the title search fee. Plus, mortgage lenders typically charge a 1% – 2% loan origination fee, which is essentially their profit. The majority of these fees are paid on your closing date, and depending on where you live, closing costs can range between 3% and 6% of the sale price. This is a huge chunk of cash, and if you don’t have the money, this can kill the mortgage deal. However, you can shop around and look for cheaper fees.

A lender may charge higher fees betting on the fact that you will not shop around. Don’t go along with the first mortgage loan quote you receive. Shopping around doesn’t hurt your credit score. As a matter of fact, multiple mortgage applications completed within a 30-day span count as a single inquiry, according to MyFICO.

#3. It’s Cheaper to Close at the End of the Month

You can choose any day of the month to close on your home loan, but there’s something your lender might not share. Another mortgage secret exposed: Closing at the beginning of the month actually increases the amount of “prepaid interest” that’s due at closing.

Let’s say you close on November 6th. In this case, your first mortgage payment isn’t due until January 1st. This mortgage payment includes December’s interest. But since interest accrues from the date your transaction closes, you’re also responsible for the  interest until December 1st. Thus, you’re required to prepay 24 days of interest at closing. This increases your closing costs, but if you wait until the end of the month, you lower your amount of prepaid interest. For example, someone who closes on November 27th only pays three days of interest at closing.

#5. How Much You’re Actually Paying in Interest

Some mortgage lenders push 30-year mortgages due to their affordability factor. However, you can save on mortgage interest rates and build equity faster with a shorter mortgage term. The more interest you pay, the more money your mortgage lender receives. Personally, I like the 20year mortgage because it allows you to build equity more quickly and still allows affordability. For example, on a $100,000 loan amount with 4.5% interest the payment difference is only $125.96.  If you choose the 15 year loan, that payment difference increases to $258.30. I’m a BIG believer by leveraging your cash into investment vehicles, such as a good growth stock mutual fund (with a good 10 year track record) with a history of at least an 8% return*. Even after your tax liability, you are still earning more than the 4.5% interest the lender is charging you.  (*Consult your financial adviser)

#6. You Can Take a Mortgage Break

Most homeowners are familiar with government modification programs and short sale options, which can stop a mortgage foreclosure. Yet, there’s another hardship provision that isn’t heavily advertised. Unknown to many, some mortgage lenders offer a skip payment or forbearance option to help borrowers who experience financial hardship. Depending on the severity of the situation, a bank may suspend payments for several months. With this mortgage secret revealed, you can contact your lender for mortgage relief the next time you endure severe economic hardship.

#7. “No Closing Costs” is a Gimmick

Mortgage lenders advertise no-closing cost mortgages and refinances to bring in new customers. Understand, however, that lenders have to make money somehow. You might avoid out-of-pocket costs at closing, but in situations like this, lenders typically charge higher mortgage interest rates. This is how they compensate for offering a no-cost home loan.

Got Questions? We’re here to help. Simply call or click and our team of experienced loan officers will help you  (with ANY situation).

(512) 799-0133 Dallas | Ft. Worth metroplex

(512) 799-0133 Austin metroplex

(806) 300-0899 Lubbock | Midland | Odessa and surrounding areas

10 Tricks to Sell Your House

Buyers love the allure of a fresh, beautiful bathroom that reminds them of luxury hotels or soothing spas they have enjoyed. And, most important, buyers want to envision themselves enjoying this luxury every day in their new home.

However, the reality is that most of us do not have the perfect bathroom. And we know that, in most instances, it is not a wise investment to do a full, costly renovation just for a home sale. It simply doesn’t translate into profit.

A better strategy is to maximize what you already have, on a budget. You want to transform your real-life, everyday bathroom into a five-star hotel experience that prospective buyers will love, without overcapitalizing. Here are simple ways to create havens with a wow factor.

Realtors: How to Find More Buyers and Sellers

Lately we’ve been hearing a lot of people ask where they can find more buyers and sellers and how they can get them to the closing table. Believe it or not, there are a lot right in front of you and chances are you’re not marketing to them effectively. Figure Announcement

After all, we are really in the “Marketing To Our Database” business, not the Real Estate Business. It’s not always about getting more clients; it’s about keeping our clients that know, like and trust us. How do you do this? Join us for the next Agent Mastermind class to find out!

CLICK HERE to Register>>>> And it’s FREE 🙂

We will share with you a blue print for marketing to your database that could double, if not triple, your income. We’ll go over –

  • The blueprint
  • Scripts when calling
  • Strategies to re-engage
  • When to do it
  • How to handle a large database
  • What to say to your database
  • Snail mail strategy you don’t want to miss
  • And so much more.

Make sure you sign up for this one because it will really change the way you do business and will help you hone in on buyers and sellers.

Dedicated to your success,

PS…On last week’s class we covered a killer way to farm a particular neighborhood and capture all of the contact information for the people that live there. This is a HUGE deal so if you missed it, let me know and I’ll send you a  copy.

Do This BEFORE You Refinance

Before you consider refinancing your existing mortgage loan, it’s important for you to determine the break-even point, which represents how soon the cost of the refinance will be recaptured through lower monthly payments.

The answer to this question depends on multiple factors. These factors include your current interest rate, the new potential rate, closing costs and how long you plan on to stay in your home.  But while the break-even point is easy enough to calculate, other factors may also influence your decision, if it’s “a go”, the type of loan you’ll select. free rate quote

While there is no rule of thumb for the maximum payback period (break-even point) that makes sense for most borrowers, three years or few typically is considered reasonable if you intend to keep your mortgage at LEAST that long.  If you can get a true zero-cost refinance (typically, the lender RAISES your mortgage rate 3/8 to 1/2 percentage point for these types of loans), your break-even point will occur immediately.  In that case, it may make sense to refinance your mortgage even if your rate is lowered by just a quarter of a percentage point, because you’ll save money every month, though the amount may be small.

A true no-cost refinance means you pay no money upfront and neither your loan amount nor interest rate is increased to build any costs into your new loan.

As your Texas mortgage lender (also California and Louisiana :), we can help you sort through the confusion by providing you with a quick and easy break-even point analysis to determine if refinancing your mortgage is a sound financial decision. For more info, simply call us,

Your FHA, VA, JUMBO, USDA, Reverse Mortgage Lender

Got Questions? We’re here to help YOU.

Budget Decorator: 10 Ways to Deck out Your Patio

Have you been gazing out at your backyard, wishing you could spruce up your hangout space? You don’t need to spend a lot to make a big difference in the way your outdoor rooms look and feel; you can whip up furnishings and decor, hunt for vintage bargains and make smart choices about new purchases. Here are 10 ideas for updating your space on a dime.