refinance strategies

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Post on 09-May-2015



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  • 1.Harnessing the American Dream Getting The Most Value For Your Home Equity Presented by Robert Ratimorszky GSF Mortgage

2. Lets Examine Your Options Option 1 You dont have to do anything. I will do my best to give you all the information you need and if you are not ready to make a decision yet, that will be fine. Option 2 You can do this on your own. Every year thousands of homeowners buy/sell/borrow on their own. So when we are complete, if you choose to do this on your own, let me know and I will understand. Option 3 You can work with a traditional Realtor/Lender. If you dont think my model of doing business is for you, just let me know. I can even refer you to some good agents in my office that might better serve your needs. Option 4 You can work with me. 3. Are You On The Path To A Secure Financial Future? In 2002, consumer debt in the U.S. surpassed $1.6 trillion dollars Credit Cards account for almost half of that debt In 2001, the average household had 10 credit cards with an average combined balance of $8,367. The average interest rate was 18.9% If your credit card balance is $8,000 at 18% interest and you make the minimum monthly payment, it will take you 25 years to pay off the debt There has to be a better way! 4. Everyone Needs to Borrow Money Since you will need to borrow money during the course of your life, doesnt it make sense to borrow it as inexpensively as possible? Avoid high-interest, non-deductible debt such as credit cards, auto loans, and personal loans. Instead, choose the better way. Get the most value for your Home Equity! 5. Make your Mortgage Work for You! The Old Way of Thinking: Get the lowest-rate mortgage Start a bi-weekly mortgage program Send in additional money whenever possible to reduce the principal balance This is the Depression Era mindset that has been burned into the American psyche But is it possible there is a better way? 6. The New Way of Thinking The rules have changed! Choose the best mortgage, not necessarily the one with the lowest rate. Subscribe to a bi-weekly mortgage plan only AFTER all other non- tax deductible and high interest rate debts are paid in full Only send extra money to your mortgage company after you have paid yourself first! Your goal is to make the smallest payment with the biggest tax-break 7. Here are 5 great reasons to carry a big, long mortgage and never pay it off. Ric Edelman New York Times Best Selling author of the New Rules of Money 1. Mortgages dont lower home values Your home appreciates or depreciates whether or not you have a mortgage. In fact, most people discover that, over time, their mortgage balance falls while their home value rises creating substantial wealth they never expected 1. Your Mortgage is the cheapest money youll ever buy Most people need to borrow money during their lives, so why pay 18% to credit cards when you can borrow at rates of 8% or even less 1. Your mortgage is the best way to lower your taxes Interest you pay on personal loans, auto loans, and credit loans is not tax deductible, but for most of us, the interest we pay on our mortgage is fully tax-deductible, making the cheapest loan youll ever have, even cheaper 8. 4. Get the cash out of the house - while you still can The main reason people turn to borrowing is because they have little or no income. But if you ever suffer a job loss, major medical, or other financial crisis, you could find yourself unable to get a home loan. Thats because lenders dont like to lend money if you are in financial difficulty. Thats why you should get a big mortgage now, before you need it and while you still can. 5. Your mortgage becomes even cheaper over time Depending on the loan you choose, your payment never rises but your income likely will. That means todays mortgage payment becomes increasingly easy to pay! The Rules of money have changed! Here are 5 great reasons to carry a big, long mortgage and never pay it off. Ric Edelman New York Times Best Selling author of the New Rules of Money 9. A Tale of Two Friends Our story begins with two friends, both earning $70,000 a year. They both have $40,000 in savings and are both buying $200,000 homes Frank Borman The Old Way 15 year mortgage at 6.38% APR $40,000 big down payment $0 left to save $1,383 monthly payment (56% tax deductible 1st year 33% average) $1,227 average monthly net after-tax cost Sends $100 monthly to lender in effort to eliminate mortgage sooner Neil Armstrong The New Way 30 year interest-only mortgage at 7.42 APR $10,000 small down payment $30,000 remaining to save $1,175 monthly payment (100% tax deductible 1st year 64% average) $799 average monthly net after-tax cost Adds $100 monthly, plus $428 saved from lower mortgage payment to savings component earning 8% rate of return 10. Who Made the Right Choice? Frank Borman Received $14,216 in tax savings Has $0 in savings components Neil Armstrong Received $22,557 in tax savings Has $83,513 in savings components Results after 5 years 11. What If Both Friends Suddenly Lose Their Job? Frank Borman Has no savings to get through crisis Cant get a loan-even though he has more $74,320 more in equity than his friend because he has no job Must sell his home or face foreclosure because he cant make his payments Now he must sell in a hurry, and at a discount, in addition to paying realtor fees (6-7%) Neil Armstrong Has $83,513 in savings to tide him over Doesnt need a loan Can easily make his mortgage payments even if hes unemployed for years Has no reason to panic since hes in control- rememberCash flow is King! 12. The Moral of Our Story The Old Way can be devastating to your financial future You should never send extra money to your mortgage company until youve paid yourself first All of your equity is at risk until your last payment is made Instead, put that money to work for you! Once you have all the facts, its easy to make the right decision! 13. The Starpointe Financial Plan INCREASE CASH FLOW Free up wasted resources Manage expenses PRESERVE YOUR ESTATE Help reduce estate taxes Build a family legacy MANAGE DEBT Consolidate debt Strive to eliminate debt CREATE EMERGENCY FUND Save at least three months income Prepare for emergency expenses ENSURE PROPER PROTECTION Protect against loss of income Protect family assets BUILD LONG- TERM ASSET ACCUMULATION Outpace inflation Reduce taxation 14. Starpointe Mortgage is Illinoiss premier mortgage provider, offering a wide array of revolutionary concepts to help make your mortgage work for you! How to Make Your Money Work for You Leverage old money that you are already spending to create new money that you can save Harness the power of compound interest to work for you, not against you Educating and empowering our clients is our focus at GSF Mortgage 15. No matter what your approach, our inventory of services can help you Traditional Mortgage Products Fixed rate loans ARM loans Balloon loans Second mortgages Interest-only loans Products that allow you to pay just the interest each month, maximizing your tax benefits and freeing up more money The Power Option Loan An ARM loan that allows you to choose from four payment options each month, giving you maximum flexibility and control 16. Starpointe Mortgage has a diverse selection of mortgage products from some of the most respected names in the industry including: 17. What would you do differently if you had the option to lower your monthly mortgage payment? Would you Pay off high interest rate debt? Save more for retirement? Prepare for your childrens education? Build more wealth accumulating assets? Plan a family vacation? Prepare for a financial emergency? With GSF Mortgage the choice is yours! 18. Now that you know how to get better value for your money, lets see the impact of the money you save over time with The Rule of 72 Divide 72 by the interest rate to find out how long it takes your money to double Age 4% Age 8% 29 $10,000 29 $10,000 47 $20,000 38 $20,000 65 $40,000 47 $40,000 56 $80,000 65 $160,000 $10,000 $50,000 $90,000 $130,000 $170,000 $210,000 29 47 65 19. If You Are Like Most People, Youre Ready To Take The Next Step Lets get started today! Let us review the results, and take advantage of the mortgage program that best fits your needs Its time for you to harness the American Dream and make your money work for you!