One of the first questions many customers ask is…

“What Is Your Interest Rate?”

When most Americans purchase Real Estate they shop for the financing base on the lowest Interest Rate they can qualify for.

To entice them into making an application, many Mortgage companies will immediately quote an extremely low Rate that is achievable only in a very limited circumstance, only to disappoint the borrower when they are ultimately unable to deliver this quoted Rate.

Although I fully appreciate the importance of Interest Rates to my Clients, I also understand that the Interest Rate is only one element of a loan transaction and that in some instances the low Interest Rate quoted by our competition is compensated for by unusually high or unnecessary fees or is tied to loan program that is ill-suited to the Borrower’s needs.

Let us first ask…

“What are Mortgage Rates based on?”

Answer: Mortgage Backed Securities and Mortgage Bonds (NOT the 10 year Treasury Note)

I have heard it over and over; people in the financial media presenting information on the Bond Markets continually make erroneous assumptions about the relationship of Mortgage Interest Rates with US Treasury Bond and Note prices.

This happens because these Financial Reporters may understand the Bond Markets in general but they are not Mortgage Experts and do not fully understand how Mortgage Interest Rates are determined.

For example, the Bond Market Reporters mistakenly tie Mortgage Rates to the performance of the US 10-year Treasury Note on a routine basis. You see this happen all the time.

In reality, Mortgage Interest Rates and the Intra-Day Re-Pricing that occur are determined from the performance of Mortgage-backed securities (MBS or Mortgage Bonds), not US 10-year Treasury Notes.

The beliefs in which you base the structuring of your Mortgage and Home Financing have very important implications on your long and short term Financial Goals.

The way you finance your Home can affect all aspects of your life and the lives of your family.

A lot of PEOPLE get concerned when Interest Rates go up however Interest Rates are Relative.

There is no need to be panicking based on daily headlines.

It is CRUCIAL to know the difference between…

Interest Rates and Rates of Return?

The difference between Interest Rates and Rates of Return is all in YOUR PERSPECTIVE.

Did you Know…Everything is 100 percent financed.

You either pay Interest to someone else as an Employment Cost…

OR

You incur a lost Opportunity Cost and give up Interest on what you can earn by using Other Peoples Money (OPM).

Don’t base your Home Loan decision on Interest Rate alone.

By Separating Equity from the walls of your Home you create greater Safety and greater Wealth.

Home Equity regardless of how it is Created, whether you create it with CASH Purchase or LARGE Down Payments or even Extra monthly Payment, or by Appreciation, Home Equity is not the same as CASH in the Bank.

However, it is a serious Asset that when it is separated from the Walls of your Home can Create Wealth, Maximize Tax Benefits and increase Retirement CASH Flow.

We offer you the competitive Rates and service you deserve.

Whether you’re a First Time Home  Buyer or are Refinancing – we will find you the best Rate and program for your situation. Apply online today for a no-cost, no-obligation pre-approval!

I am a Real Estate Finance Expert with Amerisave and a United First Financial Independent Agent.

Our focus is on how to get Clients out of Debt and at the same time start Creating Wealth!

I can provide Homeowners a software program that guides and assist them in paying off their Home loan and all their Debts in a fraction of the time.

We are changing the way Homeowners look at paying off their Debt.

As a Real Estate Finance Expert I will describe and explain the concept of harvesting your Home Equity appreciation to fund your Retirement . . . by Refinancing every few years with an Interest Only Home Loan.

However, it’s important to understand that ONLY the Interest on the original Home Loan (which is known as Home Acquisition Debt) up to a maximum of $1,000,000 – PLUS another $100,000 (which is known as Home Equity Debt) can be tax deductible.

Of course AMT and other factors may effect my Clients Home Loan Interest Deduction as well, which is why it is critically imperative that I ALWAYS defer to a professional Tax Advisor that I work with whenever discussing this concept.

Now, this doesn’t make the concept any less viable or valuable; because it still makes sense to borrow the money out of your Home Equity without taxation of the principal amount, and reinvest it in Asset Accumulation Accounts or some sort of tax sheltered or even tax deductible Retirement Account . . . IF the earnings on your investments exceed the NET Interest Rate charged (cost of money).

This is KEY…Points paid on a Mortgage to buy a House (or to pay for improvements you are making to the property) are fully deductible in the year they are paid by the borrower.

The IRS used to require that the Borrower write a separate check to the lender for these Points; in recent years, however, the IRS seems to have backed away from this position.

However, it still makes sense to either write a separate check at Closing — or at least have the Settlement Statement (the HUD-1) clearly reflect the number and amount of Points you are paying.

ALL THAT BEING SAID:

As an Expert Real Estate Financier finding you the lowest Interest Rate is the easiest part of my job. Just click here to get your PERSONALIZED MORTGAGE RATE QUOTES