Mortgage Secrets…Learn What the Experts Say

“If you owe the bank $100.00, you have a problem. If you owe them $1,000,000, the bank has a problem!”
Donald Trump

3 Ways to Make the Fed’s Moves Work for You

Here’s how to take advantage of low interest rates without letting lenders take advantage of you.

Written by Kimberly Palmer of U.S. News on April 30th, 2008

Consumers still have the chance to negotiate favorable interest rates, which are close to historic lows. Now is the perfect time to call credit card companies to ask for lower rates, lock in favorable financing on car loans, or refinance homes. But it’s not as simple as checking the latest move from the Federal Reserve. Here’s what consumers need to know:

1. Credit Card Companies Are More Willing to Offer Lower Rates

Card providers often say yes to consumers who ask for lower rates, especially when those consumers have a record of paying off their bills each month. But now is a particularly opportune time to shop around or call providers and ask for lower rates, says Bill Hardekopf, chief executive of LowCards.com. Companies are eager to keep their best customers, and the average credit card rate is just over 13 percent, a two-year low, according to IndexCreditCards.com.

More from USNews.com:

• What Fed Moves Mean for Mortgage Rates

• Is Bernanke Worse Than Greenspan?

• FAQ on Paulson’s Regulatory Reform

The downside: Even consumers with so-called fixed-rate cards can find their interest rate climbing again for a variety of reasons unrelated to their own behavior, including economic ones such as higher inflation.

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Quote of the Week:

“This one step - choosing a goal and staying to it - changes everything.”
~ Scott Reed, Bob Dole Presidential Campaign Manager

The average American has been brought up to believe that paying off their mortgage is a smart financial decision. Considering that the Average American retires later than they want and with less financial freedom than they want, it’s easy to understand why people don’t want to be in this ‘average‘ group. When we ask our clients what their top personal financial goals are there is always a common theme. Most everyone wants to Pay Off Their Mortgage and Build Their Net Worth as their top two goals.

What most people don’t realize is that these two goals can work against each other.
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For Immediate Release… Homeowners Gain Edge in Changing Real Estate Market 

It’s no secret that the softening real estate market has caused considerable confusion among homeowners and investors alike who wonder what will happen next and what they can do now to safeguard their investments and still continue to meet their financial goals in the declining real estate market.  

To clear up some of this confusion and provide homeowners and investors with an edge on the changing market, The SC Group Realtors, Silverstar Finance and The CA Educational Institute are providing a free educational seminar titled “Common Sense Strategies to Successful Equity Management.” The seminar will be held at SeaCliff Country Club in Huntington Beach on Thursday, February 21^st at 5:30pm.  

“Never has it been more critical for homeowners and investors to be educated on the current state of the real estate and mortgage markets but more importantly how they can implement successful home equity management strategies to protect their investments from further market fluctuations. As real estate consultants we understand the necessity and value in providing services that allow our clients to make more informed financial decisions and that’s exactly what we plan to deliver with this workshop”, says Tawnya Henderson of The SC Group. 

“In addition, the liquidity crisis that resulted in the recent failure of a number of lenders has shaken confidence in the mortgage industry and left many homeowners wondering how to take the safe road when securing a loan. Many are fearful of their home values continuing to decline and the possible re-cast of an adjustable rate mortgage loan on the horizon. This workshop is designed to address those concerns and provide practical solutions to help clients achieve continued financial freedom”, says Kurtis Kooiman of Silverstar Finance. 

Also, featured at the Learning Annex of Los Angeles this seminar has been incredibly valuable and seats fill quickly so reservations are required and recommended.  

To obtain more information or RSVP to this workshop call Toll Free 1.877.892.1002 or email knewberry@silverstarfinance.com. For more information on The SC Group Realtors call Toll Free 1.877.672.4768, email info@myscgroup.com or go to www.myscgroup.com.

Did you know that there $800 billion dollars of loans that still need to adjust in 2008?

I have recorded a special message for you to start the new year. Please take a quick 3 mins. to listen.

Go to: http://silverstarfinance.mypodcast.com/index.html

In this turbulent time it is critical that you plan and take control of your personal finances.

This is the secret to success in this kind of market. This is the secret to success in reaching your financial goals.

Become educated, have peace of mind!

Well, a new year is upon us and as usual, I’m here to remind you of the importance of your participating in a plan, any plan, built for success.  I wrote this quote in an e-mail long ago, “If you are not currently participating in a plan built for success, then you are currently participating in a plan built for failure.”  Scary thought, but True!

Who do you need on your team to help you with planning?  You need a Certified Financial Planner, a Certified Mortgage Advisor, a Certified Public Accountant, and an Estate Attorney, at the bare minimum. And yes, OF COURSE I can refer these important teammates to you. Just say the word and I’ll help you get a free consultation with any of the above advisors.

My team and I pride ourselves in helping people prepare for foreseen and unforeseen circumstances…being pro-active. I even conduct thorough annual reviews not only for my own clients but, for anyone that has a mortgage. In other words, I’ll manage your loan even if I didn’t originate it! I initiated this service last month and we’ve been getting rave reviews on our efforts to ensure that whatever kind of mortgage one has is being managed professionally and intelligently.

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Good afternoon!

Just a quick update to let you know what happened today, this 18th day of September 07, with The Fed.

The market had priced in a .25% rate cut but, to our surprise, The Fed cut rates by .50% on both the Lending Rate and the Discount Rate! 

What Does This mean to you?

• Home Equity Lines =  Immediate rate cut by .50%
• 1st Mortgages = Increased chance of continued lowering of rates
• Auto Loans = Lower rates on new applications
• Credit Cards = Immediate rate cut by .50% on most.  (If you have any credit card debt, reply and tell me right away!)
• Right now, as I write, the DOW (Stock exchange) is enjoying a 190…wait….220…wait…260…wait….290 point increase due to the extra .25% surprise in rate cut. This, so far, is the 2nd best day in 2007…and it’s about time!

This move by The Fed, in my opinion, was a fantastic one. So far Mr. Bernanke has done a great job and his decision to cut rates by more than expectations today were all the more reason to be confident in his abilities, as I believe it was necessary. This was the first interest rate cut in nearly 4 years.

Now, keep in mind, this is an opportunity to SAVE more money, not to spend more money so, forgive the broken record in me but, figure out what this will save you each month (if applicable) and be sure to set at least that amount aside into your retirement fund.

Please let me know if you know of anyone that would enjoy receiving my weekly updates and quotes.

Have a great day!

Kurtis Kooiman

Silverstar Finance, Inc.

* 36% of high-income American families (defined as having household income of at least $117,000) will have to Lower Their Standard of Living during their retirement years. (source: CNNMoney.com) Startling statistics about mortgage loans which may affect you. According to a poll that I read recently, 1 out of 3 homeowners have no idea what kind of loan they have.

Under better market conditions, that might be okay. But in the current market where it is predicted that over 2 million homeowners will lose their home due to sudden, unexpected and devastating increases in their mortgage payments, it’s imperative you know exactly what kind of loan you have, and even more importantly, when and if your loan will recast and go up.

As you know, I stress the importance of working with an advisor so that you have a support team in place and you are Not Left in the Dark when it comes to one of the biggest assets / debts you own. And while I always advise my clients on how to properly manage loans especially the one’s that will eventually re-cast.

Well, sometimes life’s unexpected events can put a thorn in any good plan. It’s important that IF your plan is NOT being followed then you let me know immediately!!! There’s nothing to be embarrassed about, life happens.

“The conventional view serves to protect us from the painful job of thinking.”
~ John Kenneth Galbraith, economistHere’s something that may interest you:

FOR THE WRONG REASON - Among retirees who left the workforce earlier than expected, 40% did so because of an illness or disability, vs. only 1% who were able to retire early because they achieved their accumulation goals sooner than anticipated (source: Fidelity Research Institute).

I sincerely hope that you have a system in place that will make you one of the 1%! Once again, if you have no system in place to create success, you just might be practicing in a system built for failure. So, if you were to start investing on a monthly basis today vs. 10 years from now, you would have to more than double your monthly investment plus earn at least a 4% higher return consistently. (source: BTN Research).

Let me know if you or someone you know wants to learn more about being able to retire early.

Have a great week!

If you had enough money to pay off your mortgage right now, would you? Many people would. In fact, the American Dream’ is to own your own home, and to own it outright, with no mortgage. If the American dream is so wonderful, how can we explain the fact that thousands of financially successful people, who ave more than enough money to pay off their mortgage, refuse to do so.