You Say you Want a rEvolution...

You Say you Want a rEvolution...

Well, here it is again: Tax Day in America! That inauspicious annual deadline when (some of) the Good Citizens of this country are obliged to dig deep and pony up so the Federal Government can continue to function and operate.

Which leads me to ask: is the Federal Government functional? And beyond that, is it operational? As I ponder the possible answers I realize that, at the very best, only an endless debate can ensue, a debate with no place to begin and certainly no place to end.

“Tea Parties” are being organized and held throughout the land today, and I, for one, am glad to see the increased level of interest and activity. Tax reform in America is long overdue and sorely needs the additional momentum today's protests will provide.

There's no argument that a government of the people, by the people, and for the people requires funding by those very same people it is supposed to serve. My problem is with the way that funding is acquired. In the case of a W2 wage-earner, money is confiscated before it even gets into the hands of the person that worked for it. How could that possibly be considered fair or appropriate?

Business owners enjoy the advantage of utilizing an earned dollar before it is taxed, and only having to pay taxes on the amount remaining after “expenses”. That there are two ways to pay makes it apparent that there are actually two completely different tax codes in operation. Hint: if you don't already, you should definitely own a business, even if it's home-based! (I can make some viable recommendations if you need help with this!)

Our economy is based on consumption. I would therefore contend that taxing income is completely counter-productive (even though we may be used to it and, need I say, rather damn tired of it!). Why? Simply stated, taxing income is, and will always be, inequitable. If nothing else, thousands of pages of tax code verify this contention.

So, let's wise up and tax consumption. That way everyone pays based on what they spend. And without an income tax, everyone will have more to spend! How wonderfully simple and novel is that? In one fell swoop you will eliminate politics and favoritism.

It's time for a new, positive and peaceful rEvolution in America. If you aren't already familiar with the truth regarding the Fair Tax initiative, you honestly owe it to yourself, your family, all of your loved ones and all of your friends to find out about the most highly-researched and well-considered initiative in American history.

It's time to stand-up, America. Get the facts. Get involved. Take action. Join the rEvolution. Save the Nation.

Mortgage Industry Update – Spring 2009

Mortgage Industry Update – Spring 2009

Wouldn't it be just wonderful to hear some extremely positive financial news for a change? You bet it would, so here it is: It is truly a great time to get a mortgage!

In spite of everything going on in the financial world, interest rates on mortgage loans are at or near their lowest point in a very, very long time (two generations!). Keep in mind, however, that reaction to the “mortgage meltdown” within the lending industry has been, not surprisingly, quite severe, so the days of “let's give a loan to anyone” are over (thankfully!) and it is a bit harder to qualify.

As far as credit ratings go, an 800 score is the new 720. And just what is it you get with a higher score? Better rate choices at a lower expense for the loan. You don't think your scores are that high? Don't worry. You can still get a low rate at a good price. As long as you have behaved well with your credit, everything will turn out fine.

Most people believe that a mortgage is a loan against the property. Not true. A mortgage is actually a loan against your income and the property serves as collateral! Why is this important? Because your income is the primary criteria by which you qualify for a mortgage loan. Especially now. The days of “stating” (claiming, but not verifying) your income are over. If you can't prove your actual income with appropriate documentation and/or if you don't have enough income to meet debt ratio requirements, you are going to find things difficult, if not impossible, at least for the time being.

There are a great many real estate “deals” out there for your purchase consideration. It is definitely a “Buyer's” market, and likely will be for some time to come. With an endless stream of foreclosures to consider (more enter the market everyday) and an extraordinary number of motivated Sellers, the pickings are bountiful indeed.

If you currently have an ARM (Adjustable Rate Mortgage), and you are approaching a “change date” (that point in time when your rate will adjust upward), you should very seriously consider refinancing into a fixed-rate product. There was a time when the rates on ARMs were lower than those for fixed-rate products, so it was probably wise to make use of one, since it afforded a lower monthly payment. Now, however, the reverse is true, because the secondary market that buys mortgage securities is no longer interested in having ARMs in the portfolio.

There are a number of financial considerations to be aware of when you obtain a mortgage, so I suggest you review your circumstances with a bona-fide Mortgage Professional. That would be someone who would really be able to help you understand, mathematically, all of the pros and cons specific to your personal circumstances. And no, such a person is not easy to find. On the other hand, if you're reading this, you've already found one, haven't you?

The Bottom Line: if you've been thinking even a little bit about a purchase or a refinance, you really should jump off the fence and find out what your options are.

It is truly a great time to get a mortgage!

TERRY KORI has established an impressive track record as an Educator, Advisor, and Borrower's Advocate in the mortgage industry. He has not only coached and trained 100's of Loan Officers/Originators, but has also assisted countless Borrowers in discovering the mortgage options and possibilities that could help improve their financial status. Get the answer to any mortgage/financial question you have by sending an email to: pleasehelp@getmortgagesmart.com.