"Points" are the percentage points of a mortgage loan. There is usually a loan origination fee, which is calculated in points, but a borrower may al...
“Points” are the percentage points of a mortgage loan. There is usually a loan origination fee, which is calculated in points, but a borrower may also choose to pay points in order to reduce the interest rate he will pay on his mortgage.
This second kind of points so-called “discount points” because they lower the rate on your loan. That rate is fixed by the bank based on your credit rating, among other factors. What is important to know is whether it is worth paying the extra points to reduce the interest rate on the entire mortgage.
Perfect borrowers, with perfect credit histories, pay a rate known as “par”, the rate the bank expects to make on a mortgage with low risk. Everyone else will get a rate based on the credit rating. If you can lower this rate, which lasts over the life of the loan, is it worthwhile to do so by paying points?
In a competitive buyers market, the seller may even be willing to pay these points since it will yield a more willing buyer, who will have lower loan payments over time.
But if you are paying the points, let’s calculate the savings. If you were offered a mortgage at 6% on a $100,000 home, should you pay 2 points to lower it?
Let us say that on a 30 year loan, you would have to pay 2 points to lower the mortgage to 5.5%. Two points of a $100,000 loan is $2,000. You know that expense. But how much will this additional investment save you over the life of the mortgage?
Any loan calculator you can find on the net will give you your payments. Total interest at 6% is $115,838.19; total payments is $215,838.19; mortgage payments will be $599.55.
If you paid the 2% point fee of $2,000, your total interest paid on the loan at 5.5% would become $104,404.04 and you total loan amount would be $204,404.04, with a monthly mortgage payment of $567.79.
Your monthly payment would be $31.76 less per month, and the total repayment sum would be $11,434.15 less. This is the reason many people choose to pay points on their loans.
Owner financing is an alternative method of seller your home, where you the homeowner enters into a mortgage contract with a buyer who wants to purchase your home. Owner financing usually yields full market price for the home and a good rate of return. Here are 6 ways to insure that your risk is minimized.
1. Ask for a cash down payment of at least 10% on the purchase of the home.
2. Ask for additional collateral. If the buyer does not have the required down payment and you feel comfortable with the transaction, proceed as planned be require additional security in place of the down payment such as a car title.
3. Check the buyers credit. Don’t take the buyers word for it; get a copy of their credit report. Get the buyer to provide you with a copy of their credit report. They can get one on the internet from Equifax or one of the other major national providers.
4. Trust your gut. I know it sounds clich but usually your gut instinct is the best instinct. If you do not feel comfortable with the person buying the home, you may need to walk away. Remember you are entering into a long-term relationship with the buyer and you need to be comfortable with the transaction.
5. Analyze the situation. Let’s say the buyer presents you with an offer. The bank has agreed to loan him 90% of the homes appraised value. The catch is the buyer only has 5% in cash. Are you going to let 95% of the homes value just walk away? Why not take a second mortgage back for the remaining 5% down to be paid over 5 years. Worst case scenario, you end up foreclosing on a home house that the buyer paid you 95% of the value for.
6. Talk to an attorney. Determine what the foreclosure period is in your state. Each state sets different periods for foreclosure through the courts. Knowing these things can help you sell in the safest way.
This technique can help you sell your home quickly and for full market price. Just get all the facts up front before the closing takes place.
Hubert Miles is the founder of Waterfront Houses USA, an online listing service that provides and in the US and Canada.
There has been an immense deal of negative press newly regarding sell to rent back schemes. Such schemes are presented to those homeowners who are pugnacious to meet their mortgage repayments or who have fallen behind on their repayments and for whom repossession is a enormous threat.
It seems that several companies are less than ethical when it comes to making a just offer. Some offer as little as 60% of the worth of the property. Some buyers sell the properties on to buy to let landlords, who may not succeed to uphold mortgages which lead to banks repossessing anyhow. Some considerably increase up the “affordable” rent agreement, which leaves tenants once more with a struggle to stay in the property. Due to factors such as this and more, many homeowners do not have the deal they thought they were getting and have fallen victim to sell and rent back company traps. If you are considering selling your home and renting back here are several questions that you must ask the company before signing your home away, if you want to avoid falling into a trap and a decision you later on regret.
One of the first questions that you should ask is how long you are able to rent back the property. Some companies lead homeowners to believe they can rent back indefinitely. However, in the majority of cases there is no actual lifetime guarantee. If the company you are considering selling your home to tell you that you are able to remain in the property for life, then ensure they provide you with this information in writing in a legally binding tenancy contract.
You may feel like finding out if you have the choice of being able to acquire back the property in the future if your position allows and if so how the company works out the amount you have to pay. If the company refuses to suggest you the chance to buy back the property, then you may want to ask yourself why this is, as this may be a signal that they are not interested in you staying on in the property over the long term. If the company does recommend you the preference of buying back then you need to ask how they work out the figure you are given. It is feasible that companies will offer you with a set figure, which you are able to pay over time, at the time of you selling the property. Some ask that you pay a percentage of the exact value and others may ask that you pay what they paid you for the property plus a set total or premium on top of this. Whatever choice you are given it is crucial that you get the figure in writing.
When you get the decision of being able to sell to rent back you want to ask how long the rent will be fixed and how the company will reconsider it. Usually the rent will be fixed for the initial tenancy agreement. However, some companies may incorporate break clauses in the agreement, which would allow them to raise the rent before this period had ended. Usually, you can wait for a slight increase in rent every 1 or 2 years but make sure that you get all in writing.
Read more about schemes or if you have any questions about rent back guide.
Because of the Internet, many small business owners now have the opportunity to expand their businesses into the international market. The days of having to be some huge corporate machine with bottomless pockets to be involved in the international trade market are finally over. With a little guidance, any website owner can now jump into a very pig pool and expand their business.
The government is promoting small business as a way to fight back against this horrible economy. Because their best desires are to have small businesses grow and start to provide jobs, they have set up many programs that are available to help small businesses grow into this market. Business owners are able to get information via the agency websites or to contact them directly.
There are both programs that will aid in financing along with programs that are there to direct the small business owner to other institutions that can help them in they do not qualify for government aid. However, even if the small business owner does not qualify, there are still plenty of services that are available for them to make use of. This can come in very handy when it comes to the legalities of the international trade market.
When visiting these sites, it is always a good idea to explore their FAQ section. This will have basic guides to everything that is listed in the site. If there are more questions, see if they have a member forum where questions can be posted and answered by admin staff or by other members who have experience with these issues. There may even be how to guides and manuals that can be downloaded to view at your leisure.
Because the international trade market is now being opened up to both large and small businesses, there is plenty of opportunity for everyone to make . For those that are coming into this niche for the first time, it may seem a bit overwhelming, but it is not as crazy as it may initially seem. There is plenty of help out there to guide you along if you know where to look.
Many of the help sites will require some basic information to be submitted to be able to take advantage of their services. For the most part, these forms are all able to be filled out online. If the information that they seek is more sensitive in nature, there is usually an option to print them up at home and mailing them in.
As small business has been the main thing mentioned here, it may seem as though these services are limited to only those owners, but that is not true. These services are also available for corporations as well, but most large companies will have a dedicated staff that deals specifically with this issue. A small business owner will not have the capital to take on a staff for this one interest.
The Internet has opened up the world to many people for many things and international trade market is just one more niche to explore. There is plenty of business out there without the need to have to compete in a very limited market. Instead of fighting for crumbs, it is time to get out there and expand your small business into the international trade market.
Whether you’re dealing with , Republica Dominicana bancos, or , merchant banking operations offers a variety of services to help every business succeed locally and internationally.
Motivation is a word often used to describe having the energy to accomplish a task from start to finish. Motivation gets the marathon runner from the starting line to the finish line. But motivation requires a little more than just energy.
By one definition, discipline is an activity, exercise or regimen that develops or improves a skill. Motivation is defined as an inducement or incentive. These are two completely different meanings yet they seem to be very closely associated.
You are what we think about all day. If you impress your mind with negative and unfavorable thoughts, eventually, these beliefs are what we become. If you impress your mind with positive information and reiterate your action plan, these beliefs are what you will become.
We all have areas of our lives we would like to improve. Whether it’s a new job, more time with our families or furthering our education, what we think will enrich our lives, usually will. As long as the thought is personal and not derived from trying to please someone else, this becomes the first step in using motivation to help us.
Sometimes we don’t know how we feel. We haven’t stopped to examine exactly who we are and more importantly, who we want to be for ourselves. We know who the boss, the kids and the family want us to be but too often we overlook making ourselves a priority.
Once you have figured out what you want, write it down. Carry it with you. Writing down your thoughts will reaffirm your actions.
Every morning and every evening find a quiet place where you can spend a few minutes reviewing your motivational guide as well as yours beliefs and feelings about what you are trying to achieve. This is where the motivation comes to life. Reminding yourself several times a day exactly what your plan is and the reason for your plan will allow you to remain focused.
Motivation is a powerful and proven asset. It allows us to reward ourselves as we reach milestones within our lives. It permits us to center our attention on what we have set out to achieve. From these consistent thoughts and actions, we reach our desires and dreams.
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Proactive prospecting can be much like physically exercising regularly. It’s something that you know is good for you and will produce predictable positive results, yet is something that most sales people always seem to avoid!
Make an appointment with yourself for one hour each day to prospect using your sphere of influence. Prospecting, like anything else, requires discipline. (Seems like prospecting can always be put off until a later day when the circumstances will be better.) Make an appointment with yourself each day to prospect.
Have a specific message. Everyone needs to hear the latest news of markets conditions in your area. It’s likely that they have some misinformation and you can become the expert to help them get a more accurate picture.
Accurately define your target market before you begin. Determine how many calls you will make in that hour or two. Some sale people will call until they get an appointment or make the sale. Or you could decide to make 20 calls in that allotted time. Whatever you feel comfortable with and reasonable within the time allocated.
I would highly suggest having a database of at least one month’s supply of names. The time allocated for prospecting should not be wasted looking up names or deciding at that moment who you are going to talk to next. Be prepared and watch how much more productive you will become.
Work in a private and quiet area so there are no disruptions. Do not answer calls from other clients or colleagues. Believe me, they will wait an hour or two for you to call them back. Remember, this is your time and will put you on the path to success. Get in the habit of doing this daily or at least every other day. As time progresses and with each call, your expertise will increase. The more we practice anything, the better we become.
Experience and surveys have shown that the best times to contact customers is 8 AM to 9 AM, between Noon and 1 PM and 5 PM to 6:30 PM. If you are missing a customer between certain hours, then it’s best to make note of that and call them at a different time. Chances are if you continue to call at the same time and the customer is not available, they will continue to be unavailable during that time block.
Be persistent. Be motivated. Be disciplined. These will be some of your best merits. Most quality contacts are made after the fifth call. Don’t stop or give up. Keep pursuing your dreams. Hard work and dedication will always lead to success.
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One of the winningest coaches in football history was Vince Lombardi. They even named the Super Bowl trophy after him. His philosophy about winning was remarkable. A Hall of Fame coach for the Green Bay Packers, his principles about “being the best” has been proven over and over again.
Although Lombardi has been gone nearly forty years, his philosophy of winning is as timely and pertinent today as then. He has been credited with coining numerous phrases that hit home with people in business, politics, and sports. Here are just a few that seem to work in every facet of life:
LOMBARDI TIME – 10-15 minutes early or you are late. Never being late for a meeting or appointment signifies respect for who you are working for or with. If punctuality is reciprocated, you are well on your way to being a winner.
Be enthusiastic, dedicated, motivated, determined and ambitious. Another famous Lombardi quote was “If you aren’t fired with enthusiasm, you will be fired with enthusiasm”. These quality attributes will no doubt be passed on to your subordinates especially if you are in a managerial position. If you don’t project these traits to others, then the person above you will have no use for you.
“Practice does not make PERFECT – Only PERFECT practice makes PERFECT”. If you are okay with just doing enough to get by, then the result will just get you by. If you don’t set your expectations higher and strive to be the best, then you are almost guaranteed you won’t be the best. This might not result in you being the best there is, but without question you will become ONE of the best!
THE ONLY PLACE SUCCESS COMES BEFORE WORK IS IN THE DICTIONARY – Practice and hard work will reap success. Think of the Lombardi Sweep. The defense knew it was coming, but they still couldn’t stop it. Hard work and “perfect practice” will always win out.
Lombardi thought so positive about winning he said, “If it doesn’t matter who wins or loses, they why do we keep score?” Don’t settle for “just getting by” or it will become a routine habit. Have the mindset to always be the best or you will climb the business ladder successfully.
Believe in yourself and believe in your peers or authorities. Be positive in life and live these ideologies and you will be part of the winning team.
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Some types of employment require the usage of a self certification mortgage loan. This is a mortgage loan based on your income, which may not be able to be proved immediately. Because of its flexibility, some have abused the system and lenders are becoming more cautious in who exactly can apply for them.
Owning your own business doesn’t always mean you are registered with the state or federal government in which you reside. But if you do have the proper papers to show you own a business, lenders give you preference in self certified mortgage loans. Of course you still have to have some sort of method of proving income, and you will need a fair outlook on business, but that shouldn’t be hard to prove.
It’s still possible to run your business without the paperwork. Some prefer this method since it’s less official and is less straining or more profitable in terms of taxes. This only applies to certain types of businesses- such as a freelance programmer. Registering your own business seems like a hassle, but it’s worth it if you want to make a good impression among lenders.
The Internet has produced some interesting scenarios. For instance, there is the “stay at home mom” type that might sell products over the Internet. Maybe not for a full time job, but something on the side that can earn more income. Something like this is going to produce cash flow, but not perhaps in the amount that lenders would prefer. In this instance you would likely need a cosigner to guarantee the loan.
Contract jobs are considered to be another venue for self certification loans. This would include things such as construction, temporary work at factories, web design jobs, and so on. Contract jobs are commonly on a per-case basis, which makes them seen as very unstable. Unless you have consistently earned a moderate amount of money, such as a couple years, then lenders might have a tough time in accepting your self certification loan application.
If you do get turned down for a self certified mortgage loan, pay close attention to the reasons. Loan officers may deny an application, but that doesn’t mean they don’t still want your business. They will give you a list of things that need improvement, and you can try your best to accomplish each goal. You might also go to a different lender and see if they have a different stance on your situation.
In Conclusion
Try your best to get an idea of what you will need before you arrive in the lender’s office. Lenders don’t have the time to sort through a long list of reasons you might not be eligible for a loan, so try to do as much research over the Internet as you can before applying.
Venturing into running your own business is not only very exciting, but it is also a very stressful time. There are many steps in the process that must be completed. One of these steps is acquiring the financing from a bank. In order to secure funding from a bank, you must have a sound . You will be required to submit a thorough and professional business plan with the appropriate details that will show a bank that your business is a wise investment.
The following are a number of tips to fine tuning your business plan:
1. Your business plan should have a cover page and introductory letter. The cover page should identify that you are submitting the business plan and include your company name, logo, and contact information. The introductory letter will briefly state why you are submitting a business plan.
2. A table of contents is essential to a business plan. This will allow the reviewer to get a clear understanding about what they will read. It will also permit the reader to skip to different parts of the business plan.
3. The executive summary is a crucial part of the business plan. It explains why you will be successful. It will provide a summary of the most important parts of the business plan. It should engage the reader and make him or her want to read the entire plan.
4. You must provide the bank with the necessary financial details. This includes a detailed marketing and financial plan. The bank needs to know about your competition, your market, and the potential for growth in the market. You will have to show how you will bring in sources of revenue and operate your business in a fiscally responsible manner. You should also detail your expenses that include your start up costs and costs of maintaining the business.
5. It is important to detail your strengths in your business plan. You must show what gives you a competitive edge over other companies. You need to show that you understand your customer’s needs and wants, and how you will fulfill them. The bank will want to know how you will reach your targeted customers and convey your message and product to them successfully. You must also explain your competitor’s weaknesses and how you will take advantage of these weaknesses to compete for business.
6. The bank will want to know the viability of your product or service. Make sure you have tested your product or service with a sample of your targeted customers. This can include a focus group, survey, etc. A report should be provided outlining how you will grow and make adjustments to meet your customer’s needs. You also need to show how the product or service will be made and what suppliers you will be using. You have to explain your basic requirements and how you will meet them.
7. Include a section about your management and staff. You should detail their skills, education, and experience. It should illustrate how they will make your business a success.
Regardless of your type of business, within your business plan you must provide the necessary details that will take the reviewer through the process of setting up and implementing a competitive and long term business. The business plan is a key tool to securing funding for your business venture.
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The power of the business card. I have been in commission sales for over 20 years and wanted to share with everyone the simplest and most cost effective marketing technique that has generated more sales more than any other approach. The examples below are based on my direct experience in real estate. No matter what type of sales industry you are in, I think you will find it possible to use this same approach. It might require a little more initiative and creativity but the basics are there to help you generate more sales than you could ever imagine.
If you are in regional sales you might find what I am about to say a little more challenging and creativity will have to play a part. It is still very realistic to make a ton of money with the marketing of your business cards. If you are not given leads by your company or you are an independent contractor, this is the cheapest and most productive way to market yourself.
So the question is, how does one generate sales or recognition especially when you are brand new in a sale position? I could not afford to advertise or market my services through publications, magazines, newspaper ads, etc. At the time the only item I was able to comfortably handle financially was the price of business cards.
I stood outside a football stadium prior to a Super Bowl game and handed out 1000 business cards. It took me approximately 3 hours. I generated 15 sales from this venture. You can also purchase plastic business card holders for around $.75 each. When you are out at some of you most visited establishments such as restaurants, dry cleaners, shoe repair shop, ask management if you can place your business cards on a table or desktop.
A good habit to be in, is always keep a box of business cards in your car. Over the years I have asked so many people for their business card and they didn’t have one on them. As far as I’m concerned that is a “lost” sale.
The primary goal of sales is to create an established client base as our years of experience grows. Word of mouth and referrals are so powerful in the sales industry. The more people that know what business we are in and what services we offer, the more likely they will come to us in the future if the need arises.
The average real estate agent sells only 8 homes per year. In the above example, the conversion ratio was only .015% but my return on investment was over $100,000. Just think if you passed out 1000 business cards per quarter. That would be 4000 per year and 60 sales for the real estate professional. Wow! Pretty amazing.
Remember to hand out business cards to everyone you meet. In the grocery store line at the dry cleaners, the dog groomers, etc. The worst thing that could happen is they throw your card away. That is about 10 cents a card. Not a great loss considering what the return can be.
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