Archive for category mortgages

New Book from Manager of Wealth Coming Soon!

New book cover coming soon

Just before the spring home buying season kicks in for 2014 , Manager of Wealth LLC is delivering a new book on Mortgage financing. This Dynamic book Your Mortgage as Your Financial Tool and not Your Financial Burden explains how mortgages work and how to pick the right mortgage and mortgage professional for your mortgage financing needs. Look out for special early promotional specials.

Get your hands on this home buying and refinancing guide at a special discounted price.

Wishing your Wealth Wellness and Wisdom

Manager of Wealth

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Losing 3 Million Dollars Isn’t a lot of Money But when it’s all you have it seems like a Everything

It’s impossible to be in business for yourself since the age of 17 and not take some loses. Setbacks come with the choice of profession. But even after fighting through the storms of several businesses over my career I was totally mentally unprepared for the Tsunami that was 2008.
Going into 2008 I was in a pretty good position. Revenues at my brokerage were around $60,000 per month, I owned three investment properties with plenty of equity, credit was great, I had the best woman in the world, and I was the majority stake holder on three multimillion dollar commercial developments in Atlanta that promised to make me a liquid cash millionaire well before the age of 40. On top of all that my friends and family were all seemingly doing well in their lives as well.

home sweet toxic home

Little did I know that a perfect storm was coming to destroy what it had taken a decade to build.

Within a few short months of the crash of 2008 the mortgage business would be on life support, property values would be trashed, the commercial lending market would freeze making it impossible to complete the sale, and my 7000 square foot home would go from $1.2 million to being worth $0 because the water supply around it was contaminated with toxic gas. Add to that two of my business partners now had wives suffering with breast cancer that would soon take their lives.

Biscayne Bay Atl

Pretty soon there were cash calls, lawsuits, hurt feeling, break ups, unbelievable stress and pain. Not just for me, but for most of America that was being rocked by the same storm. Everybody was looking for someone to blame and I was a big target.

So many days I didn’t want to get out of bed because I just didn’t want to deal with that days hurdles. I was a part of so many relationships both personal and business that were not built for this type of trauma.

By this point your ego is in a fight for it’s life. You’re either going to become bold and put together a plan to rebuild or fold and become depressed. Although I did the former many days when things were not going well I felt like doing the later.

It would have been so much easier to become totally depressed and angry and blame others for the wipeout that I didn’t fully see coming. No matter how crazy my creditors got I never lost it with anyone who owed me money. In fact, I called  to say I hoped they would make it through. If I could help them get back on their feet it profited me too, so why trip.

I actively have worked to help my biggest debtors to complete projects they are working on. One, because they were friends before they were debtors and two, because eventually somebody’s got to win and I refused to see a person as a loser just because the economy tanked.

People either believe in Scarcity or abundance but you won’t really know which until trouble comes. Those that believe is scarcity will freak out like the sky is falling and nothing good will ever happen again. Those that believe in abundance with look for opportunity.

If I have any advice to anyone who has taken a major life changing loss that affects you and the people you care about, it’s don’t let your ego and negative self talk throw you into depression. A big lose doesn’t make you a loser. You are still the same person you were only wiser and more informed.

Count your blessings daily and think about everything and everyone who is still in your corner. People really are not concerned with your loss because they are dealing with their own shortcomings.

The sooner you step back out into the world and make a positive contribution the sooner you will be back on top. The people regarded as winners have suffered more loses than most people who never try will ever face.

People have faced financial ruin, death of loved ones, loss of relationships and public and private humiliation. And still they come back.

There is no loss that last for life unless you and your ego buy into it. 90% of this life is mental. At the end of my post I always wish people wealth, wellness and wisdom and I believe setting ego aside and focusing on all the good in your life will bring you all three.

Wishing you Wealth, Wellness, and Wisdom

Manager of Wealth – Mark Fuller

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Avoiding FHA Loans is Saving Borrowers Thousands of Dollars but Few Know their Options

For the last few decades most borrowers, lenders, and real estate professionals have regarded the FHA Loan as the least expensive loan option for purchasing a home. The low 3.5% down payment and low mortgage insurance rates made buying a home more affordable for borrowers.

Now there has been a sea change in the mortgage world and FHA is fast becoming one of the more expensive options. The FHA loan is still the best you can do if you have less than stellar credit. And now with so many options to repair and enhance your credit score it makes sense to do this before applying for a mortgage so that you can get the best options.

If you don’t know how  get the credit score you need, read my last blog post Bad Credit to Great Credit in Three Easy Steps and Why you need it Now? http://wp.me/pWK6G-99

What happened to our Beloved FHA?  Congress, that’s what happened!

Currently under the current FHA guidelines a borrower purchasing a 30 year mortgage will pay 1.75% in an upfront PMI payment and 1.75% per year in PMI payments for the life of the loan. It used to be that once you had 22% equity in the property your mortgage insurance would go away but in 2013 Congress made PMI insurance permanent. You pay until the loan is paid off. Most borrowers get a FHA loan thinking they are going to pay  PMI insurance for only five years but the truth will cost those borrowers tens of thousands more in PMI insurance over the life of the loan. See the example below:

Example: $250,000 purchase – FHA loan

3.5% down payment –$ 8750.00

Upfront PMI – $ 4221.88

Loan amount –$ 245,461.88 assuming sellers pays all of closing cost

Monthly PMI – $265.92

Monthly payment excluding taxes and insurance at 4% – $1437.79

Mortgage insurance paid over the life of the loan $126,655.20, many borrowers took FHA loans thinking they would only pay for 5 years ($21,109.20) but congress changed the rules.

FHA is only good if there is no other affordable option; and luckily there is a better way to go.

Now there is a conventional loan product with the mortgage insurance paid upfront and included in the interest rate offered. This product eliminates so much of the cost of purchasing because there is no upfront PMI or monthly PMI. A conventional loan with Lender Paid Mortgage insurance or LPMI  is the way to go. Most borrowers know of this option because it is rarely offered.

Example: $250,000.00

3% down payment –$7,500.00

Up front PMI – 0.00

Monthly PMI -0.00

Loan amount – $242,500.00 assuming seller pays all the closing cost

Monthly Mortgage payment excluding taxes and insurance assuming 4.25% – $1192.95

As you can see the savings between the FHA and the LPMI are $330.74 per month or $119,066.40 over the life of the loan. This is why educated borrowers are making a move away from the FHA program and looking to LPMI as a better way to finance property. Not only is the capital needed up front less but the lifetime cost is less. In addition, the higher interest rate gives a larger tax deduction at the same time.

Current FHA loan holders can use this program in get out of current FHA loans and PMI insurance provided they meet the guidelines. People are saving tens of thousands walking away from FHA.

Give me a call at 410-908-5987 if I can be of service to you and your family.

Wishing you Wealth Wellness and Wisdom

Manager of Wealth

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