This is something I hear all the time when people call into a radio program and all day in any office setting. Since I’ve become conscience of it, it really bugs me when I hear it. After reading this, you’ll be more aware of it and it may bug you as well!

Think about what’s automatic in your life. In other words, what do you do without thinking about it, it’s just something you do that’s natural. Do you actually think about driving your own car? Of course not. You just hop in the driver’s seat, start the engine, put it in gear and drive off. No actual conscience thought, just automatic response and/or reaction.

Now think about this…

What do you do that’s automatic, or no conscience thought, in your office? I’m about to answer that question for a huge majority of you. You probably do this dozens of times a day and don’t realize your doing it. Don’t worry though, it’s not a bad thing.

What I’m talking about is a simple phone call. Yup, that’s right, you may actually be doing something automatic, or subconsciously, during the beginning stages of a phone call and not even be aware of it. And once you’re aware of it, it may change the way you do business for ever. Here’s a example phone call:

Me: “Hi Mr. Smith, this is Andrew from RMT, how are you today?”

Gives Mr. Smith a split second to recognize you.

Smith: “I’m fine, how are you?”

Me: “Great, thanks for asking, the reason I’m calling is….”

Did you catch it? My automatic, if you will (or as the American Dream Dusty Rhodes says “eef you weeeeeel”), was the “how are you” part. Please don’t misunderstand, there is nothing wrong with saying it. Some people will argue that it’s a polite gesture. And they are right, it is polite, and you can never go wrong with politeness.

My point is being aware of this little verbal exchange. If you’re aware of it, you can start to set yourself apart from others. How, you ask? This is the amazing part, this little bit of a change can extend the gap between you and your competitor so far, he may never be able to catch up, no matter what rate he quotes.

How about this little verbiage change:

Me: “Hi Mr. Smith, this is Andrew from RMT, is now a good time to chat?”

Mr. Smith now has to think about his answer, which puts the conversation control in your hands completely.

Smith: “Oh, hi Andrew, yes, this is a good time”

If he says “no, it’s not a good time”, then politely ask if you should call back or wait for him call to you.

Here’s why that sets you apart from your competitor. Both conversations are pleasantries; they are both polite, right? Which one stands out to Mr. Smith? The one asking “how are you” or the one asking “is now a good time”? The latter gives Mr. Smith the subconscious impression that you value his time (which you do), while the other is just a natural question/answer that everyone says. (and not just in the mortgage business)

Don’t get me wrong, neither conversation is bad, but one may set you apart from the other, in a good way. In terms of respecting the other person, it says all the right things. Does that make sense? Really think about it.

I can promise you this much, now that you’re aware of this different kind of phone etiquette, you will start to hear the “how are you” from others and you will realize how often it’s actually said. BUT, it will also make you more aware of what you’re saying, not just on the phone call but in all aspects of the way you talk.

How does this tie into the Pay Option Arm? Simple, and this is something I always have said: SET YOURSELF APART FROM YOUR COMPETITION! Once you set yourself apart, you can become the “expert” and then the selling is easy IF you truly understand the product, in my realm of mortgages teaching it’s the Pay Option Arm.

So, if you’re politeness sets you apart from your competition’s politeness, you’ll better your chances of getting the deal. Does that make sense?

You’ve found a house you love, and you’re ready to schedule your mortgage interview. How can you streamline the process? Here are some important tips to follow.

Choose Your Lender Carefully

Too many people look at 20 houses but only consider one lender. If you’ve worked with someone in the past and you like them, great. If not, shop around a bit. Find a lender that you’re comfortable working with, who will listen to you and take the time to really understand your needs.

Schedule Enough Time

Normally it takes at least an hour with the lender to go over your loan application and the related documentation. Make sure that you have scheduled enough time for this important process.

Get a Babysitter

Loan origination and mortgages are pretty boring topics for adults – but they’re truly stultifying for anyone under 18. Leave the kids at home. If you have small children, get a babysitter. It’s virtually impossible to keep your kinds entertained for an hour while you go over important financial documents. Lenders say that interviews where children are present normally take twice as long. Even worse, you’ll be distracted, and you may miss something important.

Plan Ahead

Be sure to allow enough time for the loan application to be processed. Normal mortgage applications take 2 to 4 weeks. An application for an FHA or VA mortgage usually takes 4 to 6 weeks. It’s possible that your loan will move along faster, but you can’t count on it.

Get Your Records Together

The most common reason for mortgage applications to be delayed is missing paperwork, especially documentation like income tax returns and bank statements. Get all the required information together as soon as possible, and get it to your lender early. One of the best reasons to be prequalified is because it gives you more time to find your paperwork!

Don’t Pack Important Documents

It’s natural to begin packing while you wait for your loan to be approved – but don’t pack those important documents! At any point during the loan approval process, the lender may need additional documents, including tax returns, bank statements, pay stubs, W-2s, etc. If you’re self-employed, this applies to your business records, as well. It’s better to wait until last to pack these items.

Close Early in the Month

Everyone tries to close on the last day of the month, which means attorneys and title companies are almost overwhelmed. It makes more sense to schedule your closing earlier in the month. It will go smoother, and you’ll have everyone’s undivided attention.

More and more homeowners are electing to refinance their mortgages with cash back for debt consolidation. There are a number of advantages to paying off your bills when refinancing; however, taking out a new home loan to consolidate debt is not without risks. Here are several tips to help you decide if refinancing to pay off your bills is the right choice for you.

When you refinance your mortgage to consolidate bills you are borrowing against the equity in your home with a new mortgage loan. You’ll use the new loan to pay off your old mortgage and the difference between the balance you owe and the amount you borrow will be paid to you at closing. The equity you have in your home is the difference between the amount you owe on the existing mortgage and the appraised value of your home. Many homeowners value equity as their nest egg and borrowing against it reduces your ownership of your home. There are however a number of favorable advantages to refinancing with cash back for debt consolidation.

The main reason is that you gain a tax deduction for your existing debt. The interest you pay on your primary mortgage loan is fully deductible on your Federal income tax. By paying off your credit cards, car loans, and other personal loans with your home equity you’ll reduce your monthly bills to one payment and lower your tax liability at the end of the year.

Before you refinance your mortgage and withdraw your equity it is important to understand that mortgage refinancing is not without risk. Not only will you be giving up ownership in your home by withdrawing your equity, you will be starting the amortization of your loan from the beginning. Amortization is the process of paying the interest and loan principal. Because mortgage loans are front-loaded with interest, in the early years of your loan most of your payment is applied to mortgage interest. This means that you’ll build the equity you borrowed at an even slower rate than your existing loan.

You can learn more about refinancing your mortgage while avoiding costly mistakes with a free mortgage video tutorial.

There is an old adage that says if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. The best scenario for you to consider mortgage refinancing is when you owe a large amount and your still have many years of paying off your home loan. The reason to do a mortgage refinancing is to save money by getting a lower borrowing rate and more favorable borrowing terms. As a general rule of thumb, the truth is there are other reasons to refinance:

1. Lower your interest rate
Refinancing your mortgage is a great way to save thousands of dollars over the length of your mortgage loan. Lowering your interest rate is one of the top reasons for refinancing your mortgage. This can make a big difference in your monthly expenses and costs for housing by saving money on financing fees.

2. Building equity faster
Homeowners build equity with their monthly mortgage payments. This equity is a form of asset and can be returned to the homeowners upon the sale of the property. In this way, homeownership is a type of forced savings. Homeowners can borrow against their equity as the value of the home increases If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15 or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

3. Convert Your Adjustable Rate Mortgage

Many homeowners who start with Adjustable Rate Mortgages desire to move to the stability of a Fixed Rate mortgage later on down the road. As interest rates fluctuate, making original deals less attractive, people will change their loan programs in order to capitalize on the best rates available.

4. Improved Credit Rating

Your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. Over time, you will end up with a much improved credit score and a more admirable credit history. Your improved credit score helps you obtain a lower interest rate.

We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save on interest fees paid over the life of the loan.

5. Use the equity you have established - CASH OUT OPTION

A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

6. Tax deductions

Homeowners can deduct mortgage interest and property tax

payments on their income tax return. This can mean substantial

savings for some families. Some tax deductions include:

• Mortgage interest

• Property taxes

• Closing costs

• Discount points

• Origination fees

Regardless of your reasons for wanting to refinance, Consider these components when choosing a 30 year fixed loan, obtaining low monthly payments that do not change, loan that's generally easier to qualify for, planning to remain in your house less than 10 years , mortgage companies will review the terms of your existing loan program. It will be important for us to know the purpose of the refinance and how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. Another important point to remember with mortgage companies who refinance home loans, get a guarantee on the rate so that it is locked in during closing. This will keep the rate the same even if it should go up prior to your closing. You could even try and see if they will agree to a rate decrease if that should occur before closing

Last, refinancing your home is finding a reputable lender that will get the job done right the first time. The goal is to reduce your payments or to increase the equity of your home in a shorter time. We’re making it easier than ever for you to do the things you want to do whether it’s lowering your mortgage payment, consolidating debt, or remodeling your home. Regardless of credit history or employment status, we can help you when you start the mortgage refinancing process so you can free up the cash you need.

The job of your mortgage broker is to get you the best-possible deal on your mortgage that best fits your needs. You might feel as though you’re taking your broker’s word for it that you are, in fact, getting that best-possible deal. But there are some ways you can make sure you’re getting your money’s worth out of your broker.

Ask For the Comparisons

Your broker may or may not show them to you, but you can ask your mortgage broker to see the different deals he or she was able to obtain for you. This would allow you to compare these deals yourself. Many brokers like to keep the names of the lenders they work with close to their vest. They often like to only show you the one deal that is the best for you. But if you ask for the comparisons, your broker might just show you how good your deal actually is.

Do Your Own Research

Another way to determine how good of a deal you’re actually getting with your broker is to do your own research. Find your own lenders, by both using banks yourself and seeking out mortgage quotes and by using the internet to research different lenders and obtaining quotes that way.

Compare Apples-to-Apples

One thing to be cautious about when looking at the different quotes you obtain is to be sure you’re comparing apples-to-apples. Just because one lender offers a better interest rate, doesn’t mean it’s the best overall deal. Compare not only the interest rates, but the closing costs and fees and terms. If you do your own research and are able to compare the loan quotes you obtained with the loan quote your broker located, you can then more accurately determine whether your lender is earning his money.

During the peak of the refinance boom, interest rates were at an all time low. In June of 2003, the average rate for a 30-year fixed mortgage was 5.21%. Many people were wondering how long those rates would last and how could they keep them that low. There’s no doubt some people have had hesitations about re-locating for fear of losing their unbelievably low fixed-rate mortgage. Because the majority of loans written today contain a “due-on-sale” clause, mortgages are required to be paid off in full if you are selling your home.

Assumable Mortgages

Exceptions to that rule are assumable mortgages. In these mortgages, the new borrower can basically take the place of the previous borrower and assume the terms and payments of the mortgage currently held. Although some adjustable rate mortgages (or ARM’s) may contain an assumability option, the majority of assumable mortgages are government-insured mortgages, such as FHA and VA loans (as opposed to “conventional” mortgages.

Portable Mortgages

In July of 2003, the company E*Trade introduced its "Mortgage on the Move". With this program, E*Trade introduced the concept of a “portable” mortgage. This is commonly thought of as the first time in the modern mortgage industry that such a product had been available, although other lenders have since started offering them. The benefits of a portable mortgage include a fixed interest rate and the time spent on mortgage shopping. Also, the closing costs associated with obtaining new mortgages could be avoided. But, you can only transfer the mortgage once and the loan amount must be between $60,000 and $1,000,000.

Things to Consider

There are several things to take into consideration before seeking out a portable mortgage. First of all, your credit rating must be very good. Also, the rate on the loan will be approximately 3/8 of a percent higher than an identical conforming loan and you will need to make a down payment of at least 20%. If you decide to upgrade or move into a more expensive area and purchase a more expensive home, your existing loan balance will be transferred to the new property. If you need additional financing however, you will need to take out a second mortgage to make up for the difference.

Home equity is the difference in dollars between what the house is worth and what you owe on it. That value nationwide is in the $11-12 trillion range making it a plentiful source of capital.

According to Freddie Mac's quarterly refinance review for the first quarter of 2007, declining home sales and prices have not succeeded in discouraging homeowners from pulling equity out of their homes.

Freddie Mac reported that 82 percent of Freddie Mac-owned loans that were refinanced during the quarter resulted in new loans that were at least five percent larger than the original amount of the previous mortgage. This is the same percentage of cash-out refinances as was reported in the fourth quarter of 2006.

The survey didn't show how homeowners were using the newly acquired cash. The usual uses are home improvements, paying off high interest credit card debt, college expenses, or just to spend fueling the economy.

One thing that is clear however is that homeowners are using mortgage refinancing as a cheaper alternative to HELOC's. Fixed rate mortgages averaged 6.0 to 6.2 percent (depending on the loan term) during the first quarter and, home equity loans are generally indexed to a bank's prime rate, currently averaging 8.25 percent providing a rather good incentive to borrowers to use cash-out refinance as an alternative to a home equity loans.

Interestingly many homeowners who were in a position to do so have refinanced out of prime adjustable rate mortgages (ARM's) that were scheduled for an interest-rate adjustment sometime in 2007. They estimate that only $30 Billion out of 170 billion scheduled for readjustment remained active.

When you want to refinance your home, you should consider taking a remortgage. A remortgage is essentially a process that will replace your existing mortgage with a new mortgage from an alternate financing company. The new lender will pay your existing mortgage to the original mortgager. You are then left with one mortgage which you pay to the new lender. There are several benefits to getting a remortgage.

Generally the reason for why people apply for a remortgage is to save money. When you secure a new mortgage, you can often do so with a smaller interest rate than you will have on your existing mortgage. This will most certainly reduce your monthly payments. For the long term, getting a lower interest rate may also decrease the total amount you repay over the term of your loan.

Getting the best remortgage deal can be fairly difficult, particularly with the number of vendors that are fighting for your business. It will take a significant amount of time and research to find the best remortgage deal for your home. However, if you take the time and conduct your research properly, you should soon be able to see good results.

When you are looking for a remortgage, you should be looking for things like lower interest rates, better repayment terms, and an overall lower monthly payment. Examining each of these criteria carefully and applying them to your remortgage will ensure that you are paying less money for the long term and this will essentially ensure you have received the best deal possible.

Interest rates are going to be the key criteria in determining whether you get the best remortgage deal. The more equity you have in your home, the greater your chances of getting a more competitive rate. Keep this in mind when you are remortgage shopping. Repayment terms are another huge factor in determining your remortgage needs. When you borrow a lower amount than your original mortgage, your repayment terms should enable you to have lower payments and also reduce the amount of time it takes to repay the remortgage. These can be determined by comparing rates from various lenders and they will differ according to the deal that you choose.

Finally, look out for a large number of financiers both online and in your local area until you are satisfied with a lender that is right for you. By doing this, not only will you manage to find a great remortgage deal, but you will also end up saving on a lot of money.

These days buying a house means not just finding a place to call your own, but also making a smart investment. Today real estate is becoming a great investment opportunity for many homeowners. Many homeowners are using the equity they have built into their home to get liquid cash in their pocket for a number of things. This type of financing is often referred to as a home owner's loan, or a home improvement loan, or a home equity loan. How it works is you use your existing real estate as collateral to finance a loan for your home improvement needs. Either way, no matter what it is called, you need real estate if you want to qualify for these loans. Whether you need a fresh coat of paint in the house, a total home renovation, or Betsy's off to college and you need some money, you could consider getting a home loan to finance it.

Updating the bathroom, building an addition for your new home office, or any type of remodeling requires financing. Luckily today there are several ways to fund your real estate improvements. The first thing you need to do is determine how much you need and how long do you need it for. If you can determine this relatively quickly, it will be that much easier to determine whether you go with a home improvement loan, home owner's loan, or just use your credit cards. Another factor you need to consider is how much time do you need to repay the amount? If it is going to be less than a year, using your tax refund may be just as equitable to you and save you from borrowing against your real estate. If you need enough money that it will take as long as twenty years to pay it off, then financing against your home may be a good option for you to consider.

Borrowing against your home can come with whatever terms you want it to. It can be short, medium, or long term. Each type of loan comes with a variety of options, each of which comes with its own advantages and disadvantages. What options you end up going with will be relatively easy depending on what criteria you go into the loan with. These criteria include how much equity you have in your own, what your credit rating situation is like, and how much time you are willing to give yourself in regard to when you intend to pay it back.

No two homeowners can have the same approach, and you will only know what is best for your specific situation by sitting down with your banker or loan officer to find out what is best for you. You and your loan officer will together honestly assess your financial situation, and the real estate you are using as collateral. Only then will you realize what kind of a home owner's loan you should use for your home improvement needs.

So you scrimped and saved and found a way to buy your first home. You're proud of the fact that your efforts have earned you a substantial down payment, allowing you to get a smaller loan to pay for the house. Your friends tell you to get an interest only loan or a short term ARM. "Rates are much better," they tell you "and you can just refinance before it adjusts." While it may be tempting, you're no dummy. "Only a fool would get something other than a 15 or 30 year fixed!" You can still hear the words of your father counseling you about the purchase. Not quite being able to afford the 15 year payment, you opt for the 30 year and couldn't be happier. Your rate is good, your rate is fixed, and your paying down your house with each payment. You did the smart thing . . . right?

While it's true that a 30 year fixed offers you the peace of mind that your loan will never adjust, there's a serious flaw that most people see but just don't grasp enough to do something about. Have you ever took the time to add up how much that peace of mind is actually costing you? Consider this: a $200,000 loan with a 30 year fixed rate of 7% takes 29 months and costs you a jaw dropping $33,000 in interest just to pay down a mere $5,000 of principal. Don't believe me? Find any online Amortization calculator and see for yourself. Doesn't seem very fair, does it? Let's be realistic about this. We all know that banks take quite a bit of risk in loaning you hundreds of thousands of dollars. They deserve compensation for their risk but $33,000 to your $5,000?! And that's just the first 29 months - over the entire life of the loan (30 years) that $200,000 will actually cost you a total of $479,000!!! I know it's a tough pill to swallow but relax, there IS a better way. . .

Enter the Mortgage Checking Account. By combining your mortgage with your checking account, you can harness those lazy, idle dollars that sit in your checking or savings account at the end of each month and put them to use for you in your mortgage in the form of paid down principal. Each month you start with a lower loan balance and since the payment is based on a daily balance, you pay less interest each month. Consider the following example: Let's take the same $200,000 we used in the previous example. Let's also say you make $4,000 per month in net income and that you pay a total of $3,200 in bills each month, including you mortgage payment. That leaves you with $800 a month left over. You deposit your paycheck into your checking account as usual and after your bills are paid, that $800 that would have sat in your checking account doing nothing, now sits in your mortgage. You started with a loan balance of $200,000 but now, after only 1 month, you owe $199,200. And that's what next months payment will be based off of. Repeat this 5 more times and what would have taken you 29 months to do with a 30 year fixed, now took you a mere 6. The best part is, however, what would have cost you $33,000 in interest, now was cut down to just under $7,000. Feel better?

It get's even better. Because this is a checking account, you can access your money the same way you normally would with a conventional checking account. Free unlimited checks, on-line bill pay, ATM and a debit card can be used to access your cash or pay your bills. This loan is a great tool for those wanting to pay their house off in half the time, reverse mortgages and investors looking to accumulate cash while saving 5% - 8% in interest each month. While the mortgage checking account can be an outstanding tool for some, it's not for everyone and not everyone can qualify. Your money should work for YOU, NOT the banks.

When you’re looking to refinance your home loan you will ultimately be interested in finding a great value loan to refinance. The main reason for most people refinancing is to save themselves money.

There are various reasons to refinance, including

* Consolidating debts
* Reducing payments
* Reducing length of payment term.

You can refinance your existing home loan in order to reduce the interest rate that you have to pay, to get extra cash, to pay for something, to fund a new business, or to consolidate your debts into one easy to manage package.

Refinancing can provide you with extra cash if you refinance a greater amount than you currently owe on your loan. The balance will be paid to you, and you can use this to do anything you want with. Most people use it to pay off other debts, do up their home, or even buy a car.

Mortgages and other loans on our homes are usually for a long term, and so the interest rate payments are quite low. Credit cards are not designed for the same purpose, and so the interest rates are very high.

IF you have a lot of debts on your credit card, say over $10,000 then it can be difficult to manage them, and so consolidating your debts allows you to take more control of them.

This loan will give you enough money to pay off all of your existing debts and then you will continue paying for the extra money with the other loan.

By being able to put all of your debts together into one easy to manage loan, it makes it less of a problem trying to juggle all of your loan repayments. You also save money by getting rid of the high interest debts that are on your credit cards.

There are endless reasons to refinance, another one is to improve your own home. No matter what you want to do to your home, it can be very expensive. Few people can afford to do expensive jobs such as doing up their kitchen. By remortgaging your house it may be possible to release enough money to do all these jobs that you wanted to do.

Doing the kitchen or bathroom also increases the value of your home, and can make it much easier to sell your home when the time comes.

As long as you are careful you can minimize the amount of money it costs you to refinance, and it should actually be possible to reclaim this money when you come to sell your home.

You need to be aware what actually makes your home more valuable, you should also look at who might buy your home, and what sort of features they would like.

Equity is the difference between what is owed on your home and the value of your home. By applying for a home equity loan you are applying for an advance on your existing home loan.

Home owners may take a loan any time they need money for any specific purpose. It is an easy way to access extra cash when you need it. Once this loan has been fully paid off there is no reason why you may not apply for another loan when you require cash again.

When you apply for a loan the bank or money lending agencies will check your credit record and you will have to prove that you earn enough in a month to sustain the monthly payments. As this loan is secured against your home the lenders know that they cannot lose any money. For this reason they are always keen on lending money to home owners.

This loan is most often used for renovating the home. This is usually an expensive exercise and the loan comes in handy to pay for the repairs.

The loan can either be paid out in a lump sum of the bank will open a line of credit for you so that you can access the cash whenever you need it. This is the best way as you will be able to keep track of what is being spent on the project and none of it will be wasted.

Many borrowers use the proceeds of this loan to pay the tuition fees of their children who are starting college or university careers.

Because sub prime mortgage loans typically come with sky-high interest rates, individuals with less-than-perfect credit scores assume that getting an average or decent rate is impossible. Quite the contrary, there are plenty ways to negotiate a lower rate and obtain a mortgage payment within your budget.

Here are three ways to get a lower rate on your sub prime or high risk mortgage loan.

1. Accept a Pre-payment Penalty: Some homebuyers are leery to accept a pre-payment penalty because it means paying fees if they choose to sell the property or refinance within the first two to three years. However, a pre-payment penalty can be very beneficial, and it'll save you money on the mortgage. The average homebuyer lives in their property for at least five years. Since the majority of pre-pays disappear within the first three years, homebuyers with a sub prime loan should seriously consider this alternative and save money.

2. Choose a Short-Term Adjustable Rate: Because sub prime loans have higher rates, borrowers pay higher mortgage payments, which can put a strain on personal finances. If looking to lower your mortgage rate and find an affordable payment, think about a short-term ARM. Adjustable rate mortgages are riskier than fixed-rate mortgages. After the initial fixed rate period, the mortgage rate fluctuates every year for the life of the loan. Good mortgage options are the 2/28, 3/27, or 5/25 ARM. A large number of adjustable rate mortgages start with a two or three year pre-pay penalty. During the initial two years, strive to improve your credit, and then refinance to a fixed rate before the first rate adjustment occurs.

3. Provide Ample Loan Documentations: Several sub prime mortgage loans are geared toward people who cannot document their income such as self-employed individuals. While low-doc or no-doc loans are available and widely used, borrowers will pay a higher rate because the risk is greater. If looking to get a low rate on a sub prime loan, provide the lender will full documentation. This includes two-year's tax returns, recent paycheck stubs, bank and savings account statements, and information on other assets or liabilities.

How Do You Set Yourself Apart In The Mortgage Business?

I’ve determined that to be ahead of your competition in the mortgage business, you have to set yourself apart from your competition. But the challenge is, how does one get that accomplished?

There is a philosophy out in the world that says “know your weakness and strive to improve on it.” Although I do agree with this philosophy somewhat, I feel it can be a bit anti-productive. What I mean by this is if you’re constantly working on your weak spots, your strong spots may start to diminish just a tad.

The philosophy I’m more inclined to follow is one that may seem to be a bit unorthodox; One that people seem to over look quite a bit, but it’s an obvious one. Why not play to your strengths? What do I mean by this? Let me explain:

If you have had great success in cold calling, then by all means keep at it.

If you’ve have great success at telemarketing, then keep doing it!

Get it? Keep doing what you’re successfully doing.

Bottom line is, everyone has strengths at something. Wouldn’t it be wise to build on that strength instead of building on something that shows weakness? Oh sure, I’ll have people say “if you build on your weakness, you’ll have a well rounded business.” I’m sure there is a lot of truth to that statement, and if that’s your philosophy, then great!

Let’s break down a bit further what most Mortgage Professionals want to get done, shall we? What are most of us attempting to accomplish in this business? To close loans, right? What happens when you close more loan? You make more money! If you’re having success doing it one way, why not build on that success/strength?

Let’s look at it in another perspective: Here’s a sports analogy for you, Peyton Manning. What is Peyton’s strength? Generally speaking, it’s playing Quarterback for the Colts, right? I’m sure he could do it, but being a nose tackle isn’t something he seems to be working on a whole lot. Now, I haven’t seen Peyton’s check book, but I would assume he’s done very well working on being the best Quarterback he could be.

Do you understand what I’m getting at here?

Why not use that same philosophy in the mortgage world? If something is working for you, then build on that thing, embrace it, use it to your advantage. Heck, if you want to get really crazy with it, incorporate you weakness into your strength, that way you can keep your success rate up as you’re building on your strength, but that’s a whole other topic.

Traditional mortgages require that each month you pay back some of the money you borrowed (the principal) plus the interest on that money. The principal you owe on your mortgage decreases over the term of the loan. In contrast, an interest only mortgage payment allows you to pay only the interest for a specified number of years. After that, you must repay both the principal and the interest.

Most mortgages that offer an interest only payment plan have adjustable interest rates, which means that the interest rate and monthly payment will change over the term of the loan. The changes may be as often as once a month or as seldom as every 3 to 5 years, depending on the terms of your loan. For example, a 5/1 ARM has a fixed interest rate for the first 5 years; after that, the rate can change once a year (the "1" in 5/1) during the rest of the loan.

The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even if interest rates stay the same - because you must pay back the principal as well as the interest. For example, if you take out a 30-year mortgage loan with a 5-year interest only payment period, you can pay only interest for 5 years and then both principal and interest over the next 25 years. Because you begin to pay back the principal, your payments increase after year 5.

So knowing that your payment will at some point change, what are some important dates that will impact your interest only mortgage payment?

Introductory period. Many interest only mortgage payments have a 1-month or 3-month introductory rate period at the beginning of the loan. During this period, lenders use a lower interest rate to calculate your payments. For some interest only mortgage payment loans, this introductory period lasts 1, 3, or 5 years.

Interest rate adjustment period. Most interest only loans have interest rates that adjust monthly after the introductory period. You could find that the interest you owe increases even though your minimum payment stays the same each month, adding to your negative amortization. Typical interest rate adjustment periods for an interest only mortgage are monthly, every 6 months, or once a year.

Payment adjustments. Most interest only mortgage payments have payments that adjust once a year. In addition, most of the adjustments are limited by a payment cap, often 7% to 8%. Keep in mind that payment caps do not apply when your loan is recalculated at the normal recalculation period. Payment caps also do not apply if your balance grows beyond 110% or 125% of your original mortgage amount.

Recalculation period. With an interest only loan, your loan will be recalculated. The recalculation period is usually 5 years, but it can vary depending on the terms of your loan. When your loan is recalculated, the payment cap does not apply, so you could see a large change in your monthly payment. After your loan is recalculated, you will still have the option to make a minimum payment. Interest only loans are recalculated at the end of the option period (usually 3, 5, or 10 years); after that you will pay back both the principal and interest for the remaining term of the loan.

Make sure that you remember the critical dates that impact your interest only mortgage payment. Keeping track of these dates will allow you to budget for any changes and analyze if or when a refinance makes sense.

The reverse mortgage is a special type of home refinance for a person 62 years old or older. This is a way that a person can pull money out of his home without having to make payments on the line of credit or lump sum that they receive. With this type of program there is no payment or repayment of the loan and the money may be distributed in one lump sum payment, used to create a fixed income for the duration of life, or it may be used as a line of credit to be drawn upon as needed. These options can also be combined depending upon the homeowner’s particular situation.

Down and out financially doesn't need to be your situation in life to use this type of loan. You may just want to pay off an existing loan balance and not have any more payments. Freeing up the equity in your home can improve the quality of your life. The money can be used for vacationing, paying medical bills, sending a grandchild to college, or just supplementing retirement income. You have worked hard to build the equity in your home, why not enjoy it now!

Unlike a conventional loan, there are no credit standards or income qualifications. The two most important factors are your age and the value of your home. The reverse mortgage process usually will take about 30 days before you can receive your money.

When you use this type of program the title to the property will stay in your name, you are not transferring the ownership of the home. If at some point you choose to sell your home and move to another residence, you can. What goes to the bank would be the closing costs, principle borrowed and interest on the loan calculated daily. The remaining equity in the home is all yours. Another commonly asked question is, are there any negative tax consequences for using a reverse mortgage? The answer is that it is just like any other type of refinance and is not taxable income.

When your heirs receive your home they will need to either refinance the house, if they choose to retain it, or they will need to sell it. They will receive the remaining equity in the home, which would be the difference between the principal borrowed, the accrued interest, closing costs, and commissions.

One of the safeguards the federal government has put in place to make sure the consumer understands exactly how this type of product works is the requirement that you participate in a HUD-approved counseling session. This can be done over the phone and there are several different agencies who can offer this service to you free of charge. Once you have completed the counseling session, you will be mailed a certification to validate that you have met the federal government requirements to be counseled by an independent third party.

In conclusion, if you would like to use the equity in your home to more thoroughly enjoy your golden years, it is a fairly simple process to find out how much a reverse mortgage can benefit you. All you need to know is the approximate value of your home and your age and you will be able to examine all different types of products with a range of options.

If you plan on keeping the property for a long period of time, a fixed rate mortgage is the best route to take. This way you can be sure that your interest rate will stay the same for the complete term of the loan. The three most common repayment terms are 15, 20, and 30 years.

30 Year-Fixed Rate Mortgage - The most common type of mortgage and the easiest to qualify for. The 30 year fixed mortgage makes it to keep monthly payments at reasonable level. This loan is recommended if you plan to keep the house for a long period of time. Another benefit of this loan is that it provides maximum interest deduction for tax purposes.

20 Year-Fixed Rate - This repayment term is recommended if the borrower wants a lower interest rate and want to own their property sooner than 30 years.

15 Year-Fixed Rate - This is best if you want very low interest rates. This route also allows the borrower to build equity in the property quicker. The equity may be a factor if the borrower has large expenses approaching in the future such as retirement or a child's education. The monthly payments are much more than those of a 20 or 30 year fixed-rate mortgage.

Other factors go into how much the monthly payments may be including how much down payment was put forth.

Adjustable-Rate Mortgage Changing market rates effect how much you pay each month. The interest rate may go down which could result in lower mortgage payments or it could go up. Adjustable-rate mortgages are usually referred to as ARMs. Many people choose an adjustable-rate mortgage because lenders initially offer a lower interest rate than the fixed-rate. ARMs can also allow people to qualify for bigger loans. You may want an adjustable-rate mortgage if you know your income will cover any increases in the interest rate, you plan to move in the next few years. Adjustable-rate mortgages on how much an interest rate can increase. The first cap sets the limit that your interest rate can increase during each adjustment time period.The second the maximum total amount of all interest adjustments over the complete life of the loan.

A home equity line of credit or HELOC can be used for a multitude of purposes such as home improvement, reduce credit card debts, and more. When homeowners need quick cash, a good number choose a mortgage refi and create a new home loan. Yet, there is a better way to pull money from your home's equity, and it doesn't involve applying for a new mortgage or paying expensive closing costs.

Here are three things you should know before applying for a home equity line of credit.

1. Lower Fees and Paperwork.

On average, a home equity loan requires less documentation than a traditional loan or mortgage refi. The lender does not charge points or origination fees, which means borrowers pay less at closing. In many instances, the lender will deduct the HELOC fees from the available line, wherein the borrower doesn't have to pay an out-of-pocket expense.

2. Adjustable Rate Home Equity Lines of Credit

The majority of home equity lines have adjustable interest rates, and the rate can fluctuate at any given time. Unlike traditional adjustable rate mortgages that include an initial fixed rate for a specific number of years, rate changes on a HELOC may occur on a daily or monthly basis, which means your minimum monthly payment can significantly increase within one month. Some home equity lines of credit can be switched to a fixed rate loan.

3. HELOC"s offer Flexibility and Convenience

Home equity lines of credit are ideal for homeowners who will need extra cash over an extended period. Every HELOC has a draw period (usually ten years), which lets borrowers access the line and withdraw cash as needed. Lines of credit provide the flexibility to withdraw as little, or as much cash needed. Plus, home equity lines of credit are convenient because you don't have to keep applying for a new loan.

The equity in your home is the difference between the value of your home and the balance on your mortgage. For example, if your home is valued at $100,000 and you owe $50,000 on your mortgage, you have $50,000 of equity in your home.

When you have equity in your home, you have a valuable asset. Much like other assets, you can borrow against equity using what’s known as a home equity loan. In most cases, the loan has a low interest rate, allowing you to borrow for a low cost. Since interest paid on a home equity loan is tax-deductible, the loan becomes even more attractive.

A home equity loan provides you with a lump-sum of money that is repaid to the bank over a period of time. It’s important to know that, like other loans, interest begins accruing on the loan as soon as the bank issues the money to you. A home equity loan is different from a home equity line of credit which acts much like a revolving credit account.

If you’re looking for a home equity loan, you might be inclined to simply apply for one at the bank that holds your first mortgage. While it takes some of the hassle out of shopping around, this isn’t the wisest way to get a new loan. It’s very likely that another lender can provide you a lower interest rate. You’d never know if you didn’t shop around for loan quotes.

Because different lenders have different fees, costs, and repayment terms, it’s important to get quotes from several lenders. Each quote should include key information like interest rate, fees, and monthly payment. Getting free loan quotes helps you save money by giving you the information you need to make an educated decision about a home equity loan.

When a buyer gets a mortgage, the home/residence will be security for the lender if the buyer defaults. The lender is the one who holds the title/deed to the house until the loan including the interest is paid off. In some states the lender holds a lien on the title or deed.

The Basics

* The Mortgage Amount

This will be the amount that you will get from the lender for your new place of residence. It comes with a term that states how the loan will be re-paid (time, interest etc...). The most used mortgage term is over a period of 30 years. This varies based on the borrowers current situation. If a borrower can afford higher monthly payments, they can choose to select a mortgage term that is shorter. Other common mortgage term lengths include 20 years, 15 years and 10 years. The longer your term is for, the lower your monthly payments will be.

* Amortization

Over the term of your loan, you will be paying monthly payment which include the principle and the interest rate. Usually the first few years of payment goes to the interest owed and during the final years it goes to the the principle. This is called amortization and is very common.

* Fixed or Adjustable Rates

It is important to choose an interest rate that works for you. Adjustable rate mortgages mean the interest rate changes throughout the entire term. Adjustable rates include both increases and decreases to the interest rate. The more secure fixed-rate means interest rate will never change during the term of the loan.

* Down Payment

The down payment is what you pay to get the loan in the first place. The down payment is not included in the loan and must be paid by the buyer. Generally, the larger down payment paid will reduce the amount of money the borrower will borrow. The bigger the down payment means lower monthly payments. Lenders tend to view mortgages with large down payments as more secure.

* Closing Costs

During closing, primary ownership of the house is transferred to the borrower. Closing costs are usually expressed as a percentage of the loan amount or in some cases the sale amount. This varies from state to state. During the closing, there will usually be extra transfer and recording fees. More closing fees might include taxes, attorney fees, title insurance, site survey, appraisal and documentation fees.

* Points

Points are a fee that lenders charge. A point equals 1% of the loan. For example if a loan of $100,000 is taken out, a point would equal $1,000.