TexasMortgageBank

First Time Home Buyer Tax Credit Extension ?

2010-06-14T19:57:00.000-07:00

Austin Texas Purchase / Austin Refinance / Texas Mortgage / Arnold Melendez / Austin Real Estate / Mortgage Banking Expert

Thats Right. Proposals Currently being made in Nevada could lead to a 3 month extension to the First Time Home Buyer tax credit. Under the current terms buyers who went under contract by April 30,2010 are currently eligible to obtain up to an $8,000 tax credit as long as they close by June 30,2010. A move that caused a 22.4% increase in April's Pending home sales index.

The proposal would only allow people who already have signed contracts to finish at the later date.

Visit www.txmortgagebank.com for further updates on the First Time home buyer Tax credit.

Knowing When to Say No

2010-06-13T23:35:00.001-07:00

Give Prospects Your Undivided Attention

I have found that the best conversationalists are the best listeners. The same holds true with salespeople! Review the following tips to see where you might have room for improvement.

Maintain eye contact.
This does more than show the person you're interested; it helps you to concentrate on what they say.

Ask relevant questions.
Do you assume you understand, or do you make sure by asking questions that confirm statements?

Avoid distractions.
Rearrange your seating if the sun is in your eyes. If it's too noisy in a room, do what you can to cut down on distractions. This includes turning off your cell phone. Don't divide your attention.

Take notes.
You can't remember everything! Carry a pad and pen with you wherever you go. However, don't spend the entire conversation looking down at your notes. Learn to write and look them in the eye at the same time.

Don't try to multitask.
While you might think it's a time-saver to finish up one task while someone is talking, they will feel completely neglected. Maybe you won't miss a single word, but their confidence in you will be shot.

Really listen to what they are saying.
Use this as an opportunity to get to know your clients on a more personal level. Resist the temptation to talk about yourself, and turn the focus on them instead. Pick up on little clues they reveal about themselves, such as a family situation, favorite sports teams, financial investment strategy, etc.

Ask someone close to you to rate your listening skills. Listen carefully to the feedback you receive - you might be surprised by what you hear!

Call me when you have a client who needs special assistance in obtaining a mortgage loan.

Don't Talk, Listen!

2010-06-13T23:26:00.000-07:00

I have found that the best conversationalists are the best listeners. The same holds true with salespeople! Review the following tips to see where you might have room for improvement.

Maintain eye contact.
This does more than show the person you're interested; it helps you to concentrate on what they say.

Ask relevant questions.
Do you assume you understand, or do you make sure by asking questions that confirm statements?

Avoid distractions.
Rearrange your seating if the sun is in your eyes. If it's too noisy in a room, do what you can to cut down on distractions. This includes turning off your cell phone. Don't divide your attention.

Take notes.
You can't remember everything! Carry a pad and pen with you wherever you go. However, don't spend the entire conversation looking down at your notes. Learn to write and look them in the eye at the same time.

Don't try to multitask.
While you might think it's a time-saver to finish up one task while someone is talking, they will feel completely neglected. Maybe you won't miss a single word, but their confidence in you will be shot.

Really listen to what they are saying.
Use this as an opportunity to get to know your clients on a more personal level. Resist the temptation to talk about yourself, and turn the focus on them instead. Pick up on little clues they reveal about themselves, such as a family situation, favorite sports teams, financial investment strategy, etc.

Ask someone close to you to rate your listening skills. Listen carefully to the feedback you receive - you might be surprised by what you hear!

Call me when you have a client who needs special assistance in obtaining a mortgage loan.

Beyond the Entrepreneur

2010-06-13T23:23:00.000-07:00

Becoming A Business Owner

Two fantastic sources for entrepreneurs are The E-Myth Revisited¹ by Michael Gerber and Rich Dad's Cashflow Quadrant² by Robert Kiyosaki. Gerber's book is accurately sub-titled: Why Most Small Businesses Don't Work and What to Do About It. He examines the small business and the entrepreneur, and his results are intuitive but important.

As Gerber says, "The technical work of a business—and a business that does that technical work—are two totally different things!"

Take the general contractor as an example: Building a house requires a far different skillset than advertising a business and keeping the books. That's not to say the contractor shouldn't go into business for himself, but rather that he must put on his businessman's hat when he's working on his business. The same is true for any profession.

Kiyosaki goes further by dividing the enterpreneur from the business owner. He believes that while being one's own boss may seem preferable to being someone else's employee, still better is to have no boss, but rather to own the business and be able to go on vacation without the business suffering.

When the self-employed electrician gets sick, his business stops. When he wants a vacation, he doesn't get paid time off. He is the business, rather than the business owner.

The "Business Owner or Self-Employed" quiz that Kiyosaki offers is just one question: Can you walk away from your business for six months, and come back to have it running as well as, if not better than, before? If not, you're technically just an employee of your own business.

The freedom that comes from working for yourself is just the first step towards true financial freedom. If that's as much your dream as it is mine, I hope we can help each other along the way.

Stay tuned for more Business Boosters coming your way!

Why Refinance Back into a 30-Year Loan? Refinance Your Mortgage for Rate and Payment Reductions

2010-06-13T20:27:00.000-07:00

Austin,TX – One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at “no cost” to the borrower.

In the no-points no-fees scenario, the mortgage consultant uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are “one time” fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting fees, etc. The borrower is still responsible for recurring fees such as interim insurance, property taxes or insurance policy payments.

Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, etc.) are often candidates for better interest rates as well. If you haven’t checked your credit score in a while, it’s a good time to call a mortgage consultant. The question most asked is, “But why should I go back into a 30-year loan?”

There are two schools of thought on this subject, and the mortgage consultant should work hand-in-hand with the borrower’s financial planner to determine what works best for their mutual client.

One option is to take the route of the “same payment” refinance, and actually pay off the loan faster and save money on interest fees in the long-run. If refinancing results in a lower monthly payment, the borrower can still continue making the same payment they made in the original loan, and the extra money will be applied to the principal balance.

For example: Let’s say you have 25 years remaining in your current loan, and you refinance back to a 30-year loan with a slightly lower interest rate, resulting in a payment reduction of $200 per month. (Note: This is just an example. The actual amount could vary.) You could then take that extra $200 per month and apply it toward the principal on the new loan. At this rate, the loan will be paid off in 22 years and 4 months, which is 2 years and 8 months less than the original loan.

On the other hand, if the borrower’s financial planner is a proponent of best-selling author and investment guru Douglas Andrew’s philosophies (see Missed Fortune), he or she may suggest investing the extra money in a side-fund that could earn a better rate of return and grow to the amount of the mortgage (and beyond) in even less time. This method provides excellent liquidity, but having more direct access to this money may be too tempting for some homeowners.

Regardless of the reason for the refinance, the mortgage consultant will need to know what the existing loan scenario entails, review the homeowner’s long-term goals, and provide a comprehensive spreadsheet that compares and contrasts the various loan programs available.

Bear in mind, refinancing to obtain a lower interest payment could also result in a lower deduction at tax time. Arnold Melendez is affiliated with American Capital Home Loans a Licensed Banker, Nationwide Mortgage Licensing System. Mortgage Consultant and financial planner should work hand-in-hand with their mutual client’s best interest in mind.

For free consultation and a copy of The Certified Guide to Credit Scoring,call Melendez at [512-687-3213].

Or Visit www.txmortgagebank.com