Korene's Blog

It's true. Whether you receive your statement via regular postal mail, or get your statement online, there are various pieces of information on it that can serve as useful intelligence for better managing your home financing, and help you make well-informed decisions about your loan.

Let's take a look at four important pieces of information found on your statement each month:

1. Taxes.
As tax season approaches, you'll want to review your property tax write-offs, but also use your statement to check that you aren't paying too much. Many people have their property taxes paid via an escrow account attached to their home loan. The yearly property tax is put aside in the account and paid out per your local county assessor's tax collection.

If you pay your property taxes through such an escrow, the year's property tax total will be divided by 12 and bundled into your monthly mortgage payment. If your local real estate market has shifted, the figure being set aside for your property tax escrow could have shifted, as well. If the property tax fees on your payment stay the same while your home's value changes, it might be time to have your home's value reassessed.*

That said, there can be limitations placed on how much the assessors can adjust the value of your property each month, so make sure you familiarize yourself with your local regulations.

2. Amortization.
When you make a payment against your home loan each month, you pay the same amount, but what that money goes toward changes over time. In your loan you have the principal amount, which is the amount you borrowed to finance the purchase of your home, and you have interest, which is the fee you are paying for borrowing that money.

When you first begin paying your loan, your payment goes predominately toward interest, but over time your monthly payment shifts increasingly toward principal. This process is amortization, and your statement shows how your loan is amortizing each month.

If you want to try to pay down your loan more quickly in order to gain additional equity in your loan, you can pay a little extra each month, or make an additional payment each year. Make sure to note on your payments that you wish these extra payments to be applied toward principal, and watch your progress on your statement.

3. Homeowner's insurance.
Like your property taxes, many homeowners pay their homeowner's insurance in monthly installments that are bundled into their loan payment. If you do this, make sure to monitor your loan statement to see if this amount increases or decreases, which would obviously reflect changes in your insurance rates.

Also, taking a moment to examine the amount you are paying provides you with an opportunity to mull over whether or not you need to alter your policy in any way.

4. Private mortgage insurance.
Borrowers are generally required to pay for private mortgage insurance (PMI) if their down payment is less than 20 percent of the sales price of their home. This means that the loan-to-value (LTV) ratio is more than 80 percent. Essentially, PMI is designed to protect the lender in cases where the borrower defaults on the loan.

In most cases when your current loan's LTV falls to 78 percent or below, you no longer need to pay for PMI. So, if you pay PMI, watching the principal on your loan each month can help you keep track of when you may be able to cancel your PMI, which can save you a fair amount of money (which you could consider putting toward the principal, in fact).

Remember, your mortgage statement is more than just a reminder to make your payment — it's a useful tool. If you'd like to learn more about how to strategically leverage the information on your loan statement, or if you have any other home financing questions, please contact me using the information on this email.

*Neither Korene Clopine-Seaman, KLCSLoanTeam, nor PCM are a tax advisory firm. The information contained in this article is for informational purposes only and may not reflect current tax year rules and regulations. Consult your tax advisor or the IRS for current tax year rules, restrictions and regulations.

Face it, if you love deals, December is one of the best months of the year.

At this point, "there's not a lot that's not on sale," says Daniel Butler, vice president of merchandising and retail operations for the National Retail Federation.

But with some items -- such as cashmere, gift cards and bed linens -- you can often save even more if you can wait until January.

The nagging question for December bargain-questers: Can you get just a little bit more for your money at those after-holiday and January sales? Or, are you sacrificing selection in pursuit of a slightly better deal?

Want to get the most for your money this month? Here are 12 items that might be sporting even better price tags in 2013.

Don't buy high-end TVs in December
Looking for a high-end TV or a well-known brand? December is probably not the best time to shop, says Hillary Mendelsohn, author of "thepurplebook" online shopping series and founder of ThePurpleBook.com.

Expect better deals: You'll see some bargains after the holidays and right before Super Bowl Sunday, she says. Look for deals of about 25 percent off on the latest models, high-end technology and big-name brands, she says.

What is on sale: Lesser-known TV brands and more basic models, she says. And you can find deals of 30 percent to 40 percent off, Mendelsohn says.

Want to get more mileage out of your money? If you travel for the holidays, have presents shipped to your destination "and avoid those checked-bag fees," she says.

Don't buy laptops and tablets in December

Your best buys on laptops? Not in December, says Andrea Woroch, savings expert with CouponSherpa.com. You may find some price cuts, but they're likely not the best ones of the year, she says.

Ditto on electronic tablets, says Hillary Mendelsohn, author of "thepurplebook" online shopping series and founder of ThePurpleBook.com. Because they make popular gifts, it's more than likely "you're not going to get competitive deals on tablets," she says.

Expect better deals: With laptops, August and September back-to-school sales often offer the best prices, Woroch says. That's when you can find 25 percent off new models and even more on older models, she says. And you'll also find special promotions and freebies, such as a gift card or free printer, she adds.

What is on sale: Desktop computers and electronic gaming systems are on sale.

Because they aren't traditionally a holiday gift, "desktops are really a good deal during the holidays," Woroch says. Look for about 30 percent off.

And while you may not find actual sales on gaming systems, "what they'll do during the holidays is bundle them with accessories and games -- which will make them a great deal," Mendelsohn says. Savings over buying a la carte: about 20 percent, she says.

For more things Not to buy clicok on or go to the link below.

http://www.bankrate.com/finance/frugal/what-not-to-buy-in-december.aspx

By Dana Dratch • Bankrate.com

Tomorrow is January 28th, the 63rd anniversary of my parents wedding. I am so blessed to have both of my parents alive, healthy in mind, body, and spirirt.   However, like so many of the "Baby Boomers, I am experiencing an issue that is becoming more and more common.  I am witnessing firsthand the many challenges of aging. But those "golden" years likely will look vastly different for the generations that will be joining the ranks of seniors in the years to come.

After all, the generation ready to embark on their senior years, my fellow baby boomers, who has been writing our own story since day one. We are the generation that led the charge to change the way society looked at so many things from civil and women's rights to space exploration to technology.

Generations before us may have faced their senior years with apprehension, but not so for the trail-blazing baby boomers waiting to join the senior ranks. We have changed everything else about our world. Now we have the opportunity to change the face of aging. Perhaps you are among us or even younger. Regardless of your age, you may have your own seniors to take care of.

Based on what I see with my parents and what I personally see as I work with older adults, I find myself wondering "What do we hope for as we move into these "golden" years?" A cure for Alzheimer's disease? To work until  death? To vacation until death? To look great until death? To remain at home with a good quality of life?   Regardless of the hope, I see a large dose of reality that demands PAYMENT.

Changing the perception of the aging is important to seniors and those preparing to be seniors.  That's because Home Instead values the contributions that older adults have made to our world. The organization also knows that planning for their senior years is an important key to aging independently.

I invite you to participate and share the conversations that will make a difference in how aging is perceived for your generation and those you care about. Go to HowWillYouLive.org and tell us how you will change the way you age!

1. Do you know someone who fits one of these positions that is looking for a great opportunity? 
   
   Do you know someone who is:
   o Veteran?
   o disabled American?
   o mature individuals looking to get back into the job market?
   o recent college graduate?
   o diverse cultural and language skills a plus as we work in multiple states but office in Arizona (no relocation or travel required or requested)?
   
   Do you 
   know someone who is:
   Team Player?
   Confidence?
   Persistence?
   Accurate?
   Dependable?
   Trustworthy?
   Ethical?
   Attentive to Details?
   Looking for a career or a change in career?
   
   Do you know someone who has:
   Computer Skills with Microsoft Office Knowledge?
   Analytical Skills?
   Personality?
   People Skills?
   Phone Presence?
   Confidence?
   Leadership?
   Integrity? 
   
   Do you know someone who is:
   living in Metro Phoenix area od Arizona?
   is close to Arrowhead or is willing to travel to the Glendale / Peoria area?
   wanting to work?
   make a real living?
   get paid what they are worth? 
   Flexible in work hours or work load?
   Be rewarded for their extra efforts and performance?
   
   Then have them Call Scott Johnson 623-628-6988 or email your resume to sjohnson@openmtg.com . Multiple positions and diverse levels with some training available.
   
   Benefits include payroll paid weekly, health, dental, vision and life insurance, individual and team performance bonus paid monthly.
   
   Expansion Employment positions available in mortgage office:
   
   • Mortgage Originator Assistants
   • Mortgage Coordinators
   • Mortgage Programs Specialists
   • Mortgage Processors
   • DE Underwriters
   • Mortgage Document Prep/ Closers / Funding

A friend recently asked me, "How is the economy affecting you?" I told him, I have two things going for me most Americans don't have:

1) I know how to work, and

2) I am willing to do "wit" (whatever it takes) to get the job done when working!

The marketplace is going to punish, without discretion, those that don't know how to work, don't appreciate work and who don't do wit--whatever it takes-- when they work. The punishment will expand until it disciplines all those not willing to work in order to get a solution. Work is the oldest discipline of the marketplace and the only solution to the current market place.

Our ancestors prided themselves on, and knew the importance of hard work and took pride in this accomplishment. Long days at work was the norm whereby men and women alike did whatever it took to get the job done! Work was appreciated, respected and expected. Over the last four decades or so work has become an ugly word in our culture. Since the late sixties we have seen the psychiatric "blame someone else" influence on our culture, where the advice doled out suggests our parents were the cause of our problems, that all of mankind has some kind of "chemical imbalance" and our shortcomings and problems are inherited. Every human deficit is labeled a disease and popping a pill becomes the quick-fix to everything. Lowering levels of responsibility and increasing levels of blame extend itself to all sorts of other diluted solutions like no-money-down purchases, no-cost credit cards, get-rich-quick-with stocks, unconscious/blind faith 401k investing, no-money-down home purchases, and "I deserve what everyone else has regardless of my financial condition".

The current culture has forgotten the importance of hard work and personal responsibility as a solution to problems! Men and women alike look for easy quick-fixes to every problem and for someone else to blame. We have gone from a work culture to an entitlement culture. Work is the only solution to solving problems and increases an individual's sense of self worth and self respect!

The marketplace always disciplines those that will not discipline themselves. Individuals, businesses and entire industries are being punished for years of lowering responsibility levels, get-rich-quick thinking, blind investing, free credit, sense of entitlement and the unwillingness to work!Predictions:

1) Companies and industries that can only sell their products by offering free credit to consumers will go bankrupt.

2) Individuals that don't produce far in excess of what is expected will find themselves in unemployment lines.

3) Companies that can not sell products in quantities great enough at prices high enough will find themselves perpetually undercapitalized.

4) Management that does not insist on and ensure that their people work to achieve targets will be demoted back into the work force where they probably won't be able to find a job.

The 20th Century psycho-babble doctrines of 'live in the moment," problems are disorders and solutions are quick fixes (like popping a pill) have failed us. We have become a culture of pill popping, deluded, debt- ridden, get rich quick, entitlement society where someone else is always to blame.While it is convenient to blame earlier generations for our shortcomings, had we inherited their work ethic, their appreciation for saving money and not living beyond their means, we wouldn't have our current problems.

Work may not be in vogue, it may not be glamorous, and it may not be popular, but it is the ONLY thing that will get you through these times and it is the universal way to increase an individual's sense of self respect and self worth!

The "fairy tale" credit has disappeared and blaming won't advance your financial situation. Maybe the drug companies will come up with new labels for your problems and then medicate you into further levels of irresponsibility. The new labels will be: "unemployment disorder", "compulsive entitlement disorder", "debt to income imbalance disorder", "bipolar spending disorder", "lazy-ism addiction," etc.

Get to work America and be willing to do whatever it takes to get your work done. You will feel better about yourself, you will be respected by others and you will survive the current economic situation!

Call me at (623) 340-0934 or email me at korene@klcsloanteam.com 
 I will show you that I have two things going for me most Americans don't have...TO WIT....

Do you know how to sell your ideas and products to others? You need to and now you can. I have broken the code on the art of selling by showing tens of thousands of people how to be GREAT at SALES. Selling is as vital to your survival as food, water, and oxygen are. In my book "Sell or Be Sold" I provide very simple executable concepts that you can adapt to your personality and use with confidence to successfully sell others on yourself, your ideas and your products. Herein you will find step-by-step success strategies and effective sales techniques to prosper under ANY economic condition.

Every person successful in business or life, you will find an ability to influence (sell) others on their ideas. Wouldn’t it be great if you knew what successful people know or don’t know? Wouldn’t it be great if you knew all their success strategies and more? For instance, if you knew the universal formula for negotiations, you’d be more successful, right? You could then take any area of your life as it is currently, decide where you want to be, and practically achieve your goals one-by-one! You’ll have the critical points you need to know to ensure your dreams become a reality and get what you want, and deserve, NOW!

Here are 50 common characteristics I have found amongst those that are great sales people. Most of these people didn't consider themselves natural sales people but because they were able to embrace the following qualities and became great at selling. There is no one personality type that makes a great sales person. What makes a great sales person is the actions you take everyday.

1. Great sales people don't think in terms of sales but in terms of building a business.

2. Great sales people build their business one customer at a time and then leverage the last customer into more customers.

3. Great sales people listen more than they speak, getting an understanding of the customers needs and then customize a solution.

4. Great sales people deliver more than they promise and always promise a lot.

5. Great sales people invest their time in those things that positively affect their income and avoid spending time on those things that have no return.

6. Great sales people are always seeking new and better and faster ways to increase their sales efforts.

7. Great sales people are willing to invest in networking, community and relationships, knowing that the difference between a contact and a contract is 'R' and that stands for relationship.

8. Great sales people are fanatical and obsessed about selling, their customers and growing their businesses.

9. Great sales people don't depend on marketplace economies for their outcomes and instead rely on their actions.

10. Great sales people surround themselves with over-achievers and have little time for those that don't create opportunities.

11. Great sales people never accept good enough as good enough, always pushing themselves harder than others would ever dare.

12. Great sales people don't see failed sales attempts as failures but as investments in the process.

13. Great sales people never give up on unsold clients knowing that one day, someday in the future they will become clients.

14. Great sales people squeeze hours out of minutes and weeks out of days.

15. Great sales people see problems as opportunities.

16. Great sales people invest in their education, development and personal motivation knowing that these are the tools of a sales professional.

17. Great sales people invest in their careers, their businesses and their customers.

18. Great sales people hold themselves to performance standards that are higher than even their management teams do.

19.Great sales people don't need others to hold them accountable, they hold themselves accountable.

20. Great sales people are constantly in think, plan and prepare mode in order to continue to build their client base and keep their pipelines full.

21. Great sales people protect and guard their client base like a good parent would their children.

22. Great sales people are completely convinced that their products and services hold more value than the money they charge for them.

23. Great sales people have convictions that run deep and cannot be challenged by economies, competitors or lower prices.

24. Great sales people are excellent communicators and able to focus their communication on getting a deal closed.

25. Great sales people don't see themselves selling as much as they do serving but also know that a sale must be consummated in order to serve.

26. Great sales people challenge themselves constantly and are not satisfied with awards and paychecks because they correctly estimate their true potential.

27. Great sales people are never satisfied with themselves, their own efforts, their delivery or their incomes.

28. Great sales people are not just interested in being #1, but interested in disrupting the status quo in their industry.

29. Great sales people don't stay busy, they stay productive!

30. Great sales people willingly stretch way beyond being comfortable.

31. Great sales people want to create clients and referrals for life knowing a really passionate customer is worth more than a paycheck.

32. Great sales people never blame others, economies or conditions for their performance.

33. They are obsessed with building a clientele that will take care of them and their company for years.

34. Great sales people willing and inspired by failure knowing that failure can be the inspiration for innovation.

35. Great sales people stay hungry knowing this is the only way to not go hungry.

36. Great sales people show up early and stay late.

37. Great sales people view problem customers, even dissatisfied customers as opportunities to create fanatical fans.

38. Great sales people see a job with a fixed salary more of a risk than an income based on commissions.

39. Great sales people value connections with their community as the main aim of commerce.

40. Great sales people are devoted to being in their absolute best physical and mental condition.

41. Great sales people have the work ethic of an obsessed person and the persistence of maniacs.

42. Great sales people know that logic is the dream killer. Instead, they trust instinct, creativity and passion to lead and fuel them.

43. Great sales people are great with their money not overspending, creating wealth for themselves and their families.

44. Great sales people are good at starting things and great at finishing them.

45. Great sales people don't seek the easy way and instead pursue discomfort and difficulties knowing these customers are valuable.

46. Great sales people use agreement and acknowledgement like magicians keeping alive negotiations that others would let die.

47. Great sales people are completely convinced that what they are doing is making a difference for their clients.

48. Great sales people seek to be #1 in their sector and their industry not for ego but knowing it will result in more sales!

49. Great sales people obsess over dominating their industry not competing in it.

50. Great sales people take responsibility for the entire sales cycle from start to finish and are willing to get involved in those things that typically other departments would handle.

If you've ever watched TV's "The Biggest Loser," you know that it's easier to maintain a healthy weight now than try to lose weight and overcome possible health conditions later.

The same is true of your credit history, which affects everything from your purchasing power to your ability to get a reasonable loan rate or land a job. Building a healthy credit history from the start – rather than trying to overcome mistakes later – can save you time, energy and money.

To get an idea of your credit history, potential lenders will examine your credit score. A high credit score can make it easier to get a credit card or loan, and may result in the lender setting a lower interest rate. To boost your credit score, remember these tips:

1. Pay your bills on time. Sometimes automatic bill pay or payment transfer options are options.
2. Pay down your debt. Consider a refinance loans to consolidate your debt. A member service officer can also help you create a debt management plan.
3. Reconsider closing accounts. You may be tempted to close an old credit card account because you no longer use the card. But the longer responsible borrowing history you have, the better your score.
4. Think twice about opening accounts. Applying for a lot of credit at once can harm your credit score.
5. Fix errors. Review your official records from all three major credit reporting agencies (Equifax, Experian and TransUnion) and be sure any incorrect information is corrected. You can order a free credit report from each agency once a year at www.annualcreditreport.com.

We can do a loan analysis and recommend help for you to achieve financial fitness and a healthy credit history. Contact us at 623.340.0934 or email korene@wjbradley.com or visit www.klcsloanteam.com to learn more.

What seems more interesting: a laundry list of all the menial daily tasks and functions you performed at each and every job OR well-written, action statements illustrating the impact of your accomplishments?

For example, a receptionist orexecutive assistant résumé may state ”I answered the phones” OR “Monitored and managed more than 1,500 weekly telephone calls from customers, vendors, media, and contractors for 750 staff members for largest architectural firm in New Jersey.”

An example for a sales manager may be: ”Hired, managed, and trained sales representatives” OR ”Recruited, hired, managed, mentored, and motivated more than 120 sales representatives to develop customer service and sales skills resulting in more than $1.5 million in sales revenue.”

An interview-landing résumé does not just tell what you did or know how to do (task-oriented), it illustrates how well you did those things (accomplishment oriented).  Recruiters and hiring managers want to know and see hardcore facts, figures, numbers. This type of information should be indicative of your entire career, not just job by job.

From your résumé, the hiring manager already has a general idea of the tasks and responsibilities involved in the jobs you have held. What he or she wants to know is how your skills and experience impacted the bottom line for the company. The recruiting manager wants to know what the job seeker has done to enhance operations, boost revenues, bolster profits, decrease operating costs, improve business processes, save time, increase productivity, and or advance technologies.

An accomplishment oriented résumé is what sells the reader on your personal and professional value. Rather than a laundry list of daily duties, functions, and job responsibilities, this type of résumé demonstrates, in writing, how your expertise in doing those tasks benefited the company.

An easy formula for this is AARQ (“Ark”):

1. Action – What was the action you took or initiated to make a difference in results?
2. Accomplishments & Results – What did your actions accomplish at the end of the project, year, etc?
3. Quantify – Now incorporate the numbers and statistics into your story by quantifying the resulting impact on the company

Here’s an example from a recent client:

• What action did you take? Managed revenue budget.
• What was the result of this action? Exceeded revenue goals and increased revenue.
• Can you quantify the action or result? Managed $77 million revenue budget, exceeded revenue goals, increased revenue by 38%
• You then take all of that and put it on your résumé as such:

Managed $77 million revenue budget for third party marketing products, continually exceeded revenue goals, and steered 38% revenue growth.

It can be really easy to bolster your résumé by turning your tasks into bottom-line driven, powerful achievements that will catch the reader’s attention. A company is concerned with their bottom line so speak their language and illustrate your experience as it relates to them. Use your résumé as a tool to convey your value to the prospective employing company and expect more interviews in the future.

By now, job seekers should know the two cardinal rules of interview questions:

Down payment: the mere utterance of the term strikes dread in the hearts of many a homebuyer-to-be. Coming up with a down payment often seems like an obstacle that must be overcome, as it is the biggest test of our ability to save money most of us will ever face and it’s a test that stands between us and our ability to become a homeowner.

I think it’s time to flip the script on how we think about down payments. What if we looked at them less as an obstacle, and more as an opportunity? Saving and collecting a down payment takes time, discipline and financial planning. It forces us into creating and practicing sound money management skills and habits, and into making clear choices about what’s important to us - things that will stand us in good stead throughout our tenure as home owners. The more money we have to put down, the more choice we have in terms of the purchase price range and the more control we have over the monthly payment.

All that said, down payments can be take years to save for, and some buyers are concerned they might miss a good market opportunity by continuing to wait. If you count yourself in that number, here are a handful of less-well known sources for boosting your down payment stockpile:

1. Your City, County, State. Most of us remember the days of the zero-down loan, the federal home buyer tax credit era, and even have memories of when we could use tax credit funds toward our down payment and closing cost requirements. The keyword here is ‘memories’ - those days are long gone, as are the times when there were nationwide programs that allowed a home’s seller to ‘gift’ the buyer a down payment from the overall purchase price of the home.

Where have all the down payment assistance programs gone? Local, that’s where.

The best programs of this sort are now largely operated by local governments, primarily cities and counties. As such, the rules vary widely. Some are exclusively operated for buyers with low or moderate incomes. Others are dedicated to helping first-time home buyers, usually defined as someone who hasn’t owned a home in the past 3 years. Many of these programs have a limited pool of funds that may run out over the course of the fiscal or calendar year, and almost all of them require buyers to jump some major hoops in terms of: 
    bringing their own funds to the table 
    picking a home that meets certain minimum condition criteria and/or 
    completing a course of homeowner education classes

in order to qualify for the funds. Some state and local programs in areas which were particularly hard hit by the recession also offer big-time bonuses for buyers who agree to purchase a bank-owned home or a property in a designated economic recovery zone.

To find these programs, you can run a series of Google searches to find your city, county and state websites. Most will have a link for Residents, Housing, Homebuyer Assistance or some similar category of resources. And here’s a hint - make sure you’re on a site that ends in .gov - scammers posing as governmental agencies abound. Also, talk with your trusted, local real estate agent or mortgage broker; they often know the ins and outs of the local programs that can help a home buyer out. Or you can ask the KLCSLoanTeam Mortgage Originators

2. Your Parents, Family and Friends. Many more home buyers than you might think get by with a little help from their friends (and relatives). Most mortgage programs will allow for some portion of your down payment to come in the form of ‘gift money,’ which is exactly what it sounds like: money someone gives you to help you buy a home. Check in with your mortgage pro about how much of your down payment needs you can satisfy with gift money - guidelines varies widely based on how much of your own cash you have to put down and what loan programs you’re applying for.

While gift money sounds great, it’s far from a panacea to the problem of coming up with a down payment. Taking gift money from a relative may create relationship issues or come with emotional strings attached, something you should consider and evaluate before you even have conversations about it with your potential benefactors.

And gift money generally also comes with lender strings attached, as well. Namely, lenders almost always require that gift money be contributed along with a gift letter that states that the giver is a relative and that the money is a gift, not a loan. The lender may also require to see a bank account statement from the giver showing that the money was theirs to give - just to be sure they didn’t go out and get some sort of loan that they expect you to help them repay.

Most insiders think of gift money as large gifts exclusively allowable in the context of a familial relationship, but at least one program I know of allows any general well-wisher to contribute any amount to your cause, whether or not they are a relative. The FHA Bridal Registry program allows couples to open a down payment registry account with their lender, and to deposit checks into that account from anyone who wants to give any amount to help them become home owners. Talk to your FHA mortgage broker for more information on how to open such a registry account.

3. Your Employer. Universities and the municipal agencies that employ first responders like police and fire personnel frequently make available down payment and other home buying assistance programs to their staffers. So do some large employers or even smaller companies who are seeking to lure top-level recruits, in the form of relocation assistance programs. Check in with your employers’ Human Resource division to explore whether any such assistance is available - and if you happen to find yourself a hot prospect on the job market, consider trying to negotiate relocation or down payment assistance into your offer package.

4. Your Income. This is not about cutting out a cup of coffee here or there. Euro-style austerity measures are just too hard to keep up for the months or years it can take to save up a down payment. Rather, the idea is to get gut-level real with yourself about what’s really important to you. And if the answer is buying a home, then it’s time to go through your spending with a fine tooth comb and look for the leakage you can stop up - cash you can redirect to your down payment savings.

If you spend $20 a workday on oatmeal and coffee at breakfast and your takeout lunch, that’s $400 per month - almost $5000 a year, you can save by simply bringing these things from home (not to mention the health and other benefits you’ll gain). And those numbers are not inflated, if you work in a big city. Nor is the $100/month cable bill, the $15 yoga class or the $2,000 vacation.

Fact is, you can have much of the enjoyment of these things for much, much less than you’re used to spending - at least while you’re in down payment-saving mode. Stream TV shows and movies online at Netflix, Hulu or Amazon - you can also find great workout videos on some of these channels for 10 percent of what you’d pay to go to a class! Bring the staycation back, or cut hotel costs by renting a private room or small apartment on a site like VRBO or Airbnb (you might be surprised at how nice the experience is if you stick with the vacation rentals that have rave reviews - I certainly was.)

Redirecting the dollars you would normally spend - whether intentionally or on autopilot - for some of these big-ticket items back into your down payment savings account is like pressing fast forward on your home buying timeline. The key is to click out of money-spending autopilot and to transfer the saved money, asap, into a separate down payment savings account - ideally one that is online, so you have to think hard and wait a few days before pulling money out.

5. Your Assets. Some retirement accounts allow you to borrow against or pull out funds, penalty-free, to apply them toward your down payment on a home. Is it advisable for everyone, in every situation to deplete their 401K or IRA to plug that cash into a house? Absolutely not. But there are situations in which it may make sense to get your down payment up to 20%, say, by borrowing a few thousand dollars from yourself.

If getting your down payment to the 20 percent mark by borrowing from your 401K gets your mortgage interest rate down and allows you to repay that cash to your own retirement account (vs. to your mortgage lender) with interest, you and your financial advisor might agree that this move is the right move for you. Or not - this is a highly personal decision that must be made strategically, but some home buyers should at least explore whether their retirement accounts are a sensible source of some portion of their down payment funds. 

These aren’t the only assets that can help fund your down payment. I have heard of others who have given themselves a complete financial makeover  by getting rid of unnecessary belongings and selling them at flea markets, yard sales and online. Don’t underestimate what reselling your stuff can yield over the years!

Do you have ‘stuff’ you don’t need or use that someone else would love? Consider liquidating it online or taking it to a consignment store, and using the cash to fluff your down payment savings. Side benefit: you’ll have less to move when you’re ready to move into your new home!

Everyone: What off-the-grid methods have you or your clients explored for coming up with down payment money?  Let me know.

P.S. - You should follow Korene Clopine-Seaman by Texting 32665 Fan KoreneMortgage) and the KLCSLoanTeam on Facebook by Texting 32665 Fan KLCSLoanTeam )!   Text 32665 Fan KLCSLoanTeam    

ID thieves robbing the grave; 2.5 million dead hit annually

Ruthless ID thieves are robbing identities even from the grave, a new study has found.

Nearly 2.5 million dead people are victims of identity theft every year, according to a data analysis by fraud prevention firm ID Analytics being made public Monday.

The study offers the first hard data about a little-understood aspect of ID theft that can cause unnecessary pain and suffering to family members already dealing with loss.

ID Analytics works with dozens of credit-granting companies, such as banks and cellphone providers, to find common patterns among fraudsters as they fill out credit applications. The firm has unique insight intro fraud trends, as it screens more than 1 billion such applications annually. For this study, it considered 100 million applications filed during the first three months of 2011 and compared Social Security numbers and other information in those applications against the Social Security Administration's Death Master File, which tracks the identities of people after they die.

Stephen Coggeshall, chief technology officer at ID Analytics, recently crunched those numbers to look for evidence that criminals were exploiting SSNs attached to the deceased. The results showed a wide-scale problem, much larger than previously believed.

Roughly 800,000 deceased Americans are deliberately targeted by criminals each year, the study claims.

In those cases, an imposter armed with a deceased person's SSN, name and birthday tries to fully assume the dead person's identity.

ID Analytics has no information about whether or not the attempts were successful, Coggeshall said — only that the personal information was used on an application during a fraud attempt.

Meanwhile, SSNs attached to 1.6 million more dead adults find their way onto thieves' fraudulent applications through random selection, he said. Many criminals simply guess at SSNs when filling out fraud applications and accidentally use one that's already been issued to someone who's now dead. ID Analytics calls them

"identity manipulators" who make arbitrary variations on their own personal information to avoid fraud detection tools and randomly pick an SSN associated with a deceased person.

"This study brings to light a significant problem, as we see fraudsters intentionally using identities of the deceased at the rate of more than 2,000 per day," Coggeshall said.

Imposters who exploit the dead are after the same things that all ID thieves crave: theft of cellphone service or the ability to open up new credit cards or take out loans, Coggeshall said.

There are obvious advantages for criminals when using a dead person's personal information. If the fraud is initially successful, because the normal channel for discovery — a consumer who notices unauthorized charges or accounts on his or her credit history — doesn't exist. Family members or others disposing of an estate can discover the fraud through the arrival of unexpected bills, but the usual hurdles for recovering from such fraud are even higher when a third party must call and ask for corrections.

Fighting ID theft of the dead should be easier than most other forms of identity fraud. The Social Security Administration frequently updates the Death Master File, which now contains about 40 million SSNs. Firms that issue credit should routinely check their applications against this simple list; several inexpensive products offer this service, and the file is available in several forms online (there's even an app). But clearly, that kind of screening isn't happening, Coggeshall said. Otherwise, criminals wouldn't be trying to exploit the dead so frequently.

Ironically, if companies don't check SSNs against the Death Master File, it becomes a great source for criminals to obtain identities and SSNs to be exploited.

"We have no sense of where criminals are getting the numbers, but a certain portion of them probably are coming from public sources, like the Death Master File," Coggeshall said.

The study also hinted that seriously ill people are being targeted by criminals. There were 2 million cases of SSNs' being used in credit applications, with the SSN holder dying within the next two months.

"Certainly a good deal of this is not suspicious, but some fraction of these applications may be the misuse of the identities of the dying," Coggeshall said.

RED TAPE TIPS

Family members already dealing with a tragedy have plenty to worry about, but identity theft of the dead is a reality they must consider, he said.

"While this is clearly a problem for businesses, surviving family members can also be the victims of this identity fraud as they are left to manage the estates of their deceased loved ones," Coggeshall said. "It's important for people to monitor their deceased family members' identities for at least one year."

It's possible for a third party, such as a spouse, to get a credit report for a deceased person, but it's not trivial. The bureaus will want a death certificate as proof the individual has died, and they'll want some evidence that the requester has a right to see the information — such as a marriage license or an order showing he or she is an executor of the estate. That person can request that a "deceased — do not issue credit" notation be placed on the report, but certain hiccups can occur. If a credit account, such as a loan, is in both spouses' names, a "deceased" flag can occasionally cause confusion.

A deceased person's credit report isn't deleted from bureau files immediately to safeguard against identity theft in case the deceased's identifying information is stolen. Once the death is reported, lenders can stop new credit from being issued and help prevent fraud. The simplest way to notify the three major credit bureaus of someone's death and request that a "deceased -- do not issue credit" flag be placed on the credit file is to use snail mail, certified with a return receipt requested, to make your request to the bureaus. Be sure to keep copies of everything you send, and record the date sent and the date a reply is received just in case a follow-up request is necessary.

You will need to include in the communication:

Copies of papers proving you are the executor or spouse.
A certified copy of the death certificate (one with a raised stamp).
Full name of the deceased person.
Date of birth of deceased.
Social Security number of deceased.
Most recent address of deceased.
Date of deceased's death.
Request that a "deceased -- do not issue credit" flag be placed on the credit file due to death.
If you are the spouse or executor of the deceased, you can ask for a copy of the decedent's credit report, so you'll have an accurate picture of his or her outstanding accounts. You can find a sample of a letter request at the Identity Theft Resource Center.

Mail the letter and supporting documentation certified mail, return receipt requested to:

Equifax
P.O. Box 150139
Atlanta, GA 30348

Experian
P.O. Box 9701
Allen, TX 75013

TransUnion
P.O. Box 6790
Fullerton, CA 92834

The deceased alert will effectively freeze the credit file, so a security freeze should not be necessary. The Social Security Administration does notify the credit bureaus of persons who have died, but it can take months for the information to reach the bureaus, so it's probably better to go ahead and make the notification directly.

I would also recommend that you contact any creditors of the deceased and notify them of the death and to close the account(s) when appropriate. Be cautious about closing any accounts that may be jointly held and reported. Closing joint accounts could have a negative impact on the survivor's credit by reducing the types of credit in use and by increasing the debt-to-credit ratio of any accounts on which money is still owed. Before closing accounts, think about which you may want to keep and use to retain a strong active credit history and access to credit. The creditors will report the updated account information to the credit bureaus. Accounts that have been identified with a deceased notation will be deleted after one year, so eventually all accounts will drop from the report and the credit file will not exist.

After you have sent the notification letters to the credit bureaus and have received your certified mail receipt that they were delivered, I would wait a couple of weeks and then obtain copies of the credit reports from all three bureaus. This will give you an opportunity to check that a freeze is in place and also to review for any suspicious activity that might be related to identity theft.

Be sure to send your notices certified, return receipt for best results and best handling.

Every month, you receive a mortgage statement that reminds you to make your regular payment against your loan, but did you realize that it can serve as a strategic financial tool?

It's true. Whether you receive your statement via regular postal mail, or get your statement online, there are various pieces of information on it that can serve as useful intelligence for better managing your home financing, and help you make well-informed decisions about your loan.

Let's take a look at four important pieces of information found on your statement each month:

1. Taxes.
As tax season approaches, you'll want to review your property tax write-offs, but also use your statement to check that you aren't paying too much. Many people have their property taxes paid via an escrow account attached to their home loan. The yearly property tax is put aside in the account and paid out per your local county assessor's tax collection.

If you pay your property taxes through such an escrow, the year's property tax total will be divided by 12 and bundled into your monthly mortgage payment. If your local real estate market has shifted, the figure being set aside for your property tax escrow could have shifted, as well. If the property tax fees on your payment stay the same while your home's value changes, it might be time to have your home's value reassessed.*

That said, there can be limitations placed on how much the assessors can adjust the value of your property each month, so make sure you familiarize yourself with your local regulations.

2. Amortization.
When you make a payment against your home loan each month, you pay the same amount, but what that money goes toward changes over time. In your loan you have the principal amount, which is the amount you borrowed to finance the purchase of your home, and you have interest, which is the fee you are paying for borrowing that money.

When you first begin paying your loan, your payment goes predominately toward interest, but over time your monthly payment shifts increasingly toward principal. This process is amortization, and your statement shows how your loan is amortizing each month.

If you want to try to pay down your loan more quickly in order to gain additional equity in your loan, you can pay a little extra each month, or make an additional payment each year. Make sure to note on your payments that you wish these extra payments to be applied toward principal, and watch your progress on your statement.

3. Homeowner's insurance.
Like your property taxes, many homeowners pay their homeowner's insurance in monthly installments that are bundled into their loan payment. If you do this, make sure to monitor your loan statement to see if this amount increases or decreases, which would obviously reflect changes in your insurance rates.

Also, taking a moment to examine the amount you are paying provides you with an opportunity to mull over whether or not you need to alter your policy in any way.

4. Private mortgage insurance.
Borrowers are generally required to pay for private mortgage insurance (PMI) if their down payment is less than 20 percent of the sales price of their home. This means that the loan-to-value (LTV) ratio is more than 80 percent. Essentially, PMI is designed to protect the lender in cases where the borrower defaults on the loan.

In most cases when your current loan's LTV falls to 78 percent or below, you no longer need to pay for PMI. So, if you pay PMI, watching the principal on your loan each month can help you keep track of when you may be able to cancel your PMI, which can save you a fair amount of money (which you could consider putting toward the principal, in fact).

Remember, your mortgage statement is more than just a reminder to make your payment — it's a useful tool. If you'd like to learn more about how to strategically leverage the information on your loan statement, or if you have any other home financing questions, please contact me using the information on this email.

*Neither Korene Clopine-Seaman nor WJB are a tax advisory firm. The information contained in this article is for informational purposes only and may not reflect current tax year rules and regulations. Consult your tax advisor or the IRS for current tax year rules, restrictions and regulations.

We talk a lot about goals and focus, but the reality is that keeping sight of your goals and focusing on the steps to achieve them truly does bring success. As the new year begins, refresh your sense of purpose and strengthen your focus by keeping these four ideas in mind.
 
Multi-tasking is a myth.
The software industry, time management gurus and the overall climate of modern business and personal life have convinced us that we can not only do everything, but do it simultaneously. Don't believe it. As professionals, as individuals and as family members, we as a nation are over-scheduling ourselves into ineffectiveness. Instead of having time to do things thoughtfully, or having the downtime that gives our brains much-needed rest, we are filling our minutes with multiple priorities and obligations.
 
Break the cycle.
Start learning to assess whether you can really add more to your schedule before just agreeing to it. For many people it's hard to say "no" or "I can get to it, but it may take a little while." But understanding when and how to say no to those you work with can be just as important as meeting deadlines. Of course, if a new obligation or task truly outweighs a current one, then have one replace the other, but don't try to double up and consistently over-achieve, as that can yield mixed results.
 
Pick one tool and stick with it.
Between the web, smart phone apps, software and plain old paper and pens, there are scores (and perhaps hundreds) of productivity tools to help you create task lists, track your time and become a master of your destiny. Here's the problem: Many people adopt one of these tools, use it for a week or so, and then move on to the next hot thing, as they may be continuously attracted to the next shiny new productivity tool. Don't make that mistake. Jumping from technology to new technology can slow your business down and have you focused more on implementing a new process rather than delivering results. Be aware of emerging technology, but understand there may be many ways to accomplish your same goals. Newest isn't always best.
 
Your communications — who's in charge?
From email to texting to social media, our online communications tools have become so ingrained in our lives that we are constantly monitoring, managing and responding to them. Think about it: How often do you catch yourself checking your inbox on your phone at the dinner table, or reading Facebook posts at your kid's soccer practice? That is because your tools have taken over. Work on reversing that.
 
Your inbox is not your job, so check your inbox as infrequently as possible. When you do access it, first scan by sender and subject line for emails that you know will help you accomplish your agenda items, and prioritize those. Then go through everything else, deleting the obvious noise and clutter. For the remaining emails, take one of five actions immediately: trash it, answer it, refer it to someone else, file it for reference or delete it.
 
Ultimately, many of our modern organizational problems stem from the fact that we often confuse the means with the end. We can become so fixated on the how of getting things done that we have decided that managing our systems and tools equates to actually accomplishing something. Stick to your purpose and you will see a less frazzled and stressful, and more focused and successful, 2012.

The six strategies you may want to avoid:

The first piece of advice from experts in the financial field is to be sure you do not make your situation worse by making common mistakes. In particular, try to avoid:

1.    DO NOT Declare bankruptcy--this can have permanent and severe consequences on your financial future. Avoid it if you can, especially when debt settlement may work for you.

2.    DO NOT rely on advice from amateurs like family, friends, co-workers, and strangers.  Get your advice from licensed, trained professionals.  There is no over the counter medicine that fits everyone’s financial situation or circumstances.

3.    DO NOT pay only the minimum payment on your debt, as this will result in the amount you owe actually growing, and your problems will only become worse.

4.    DO NOT rely on friends and family to pay your bills and or debt, as this can damage relationships with the most important people in your life.

5.    DO NOT use unscrupulous credit counselors that demand cash high upfront fees for help they promise, but don't deliver.  Remember they do want to make money.  This is their business but do not pay high upfront unreasonable fees.

6.    DO NOT use new, high-interest loans to pay off lower interest rate loans. While it may be easier to just have one payment, it will actually increase the amount you have to pay back.

Debt Settlement

For many people, working with a debt settlement company can actually be a great solution. You’ve probably heard a lot of advertising for these services recently, but what exactly do they do?

Debt settlement is the process of negotiating with creditors to get them to forgive a big portion of your debt. Why would a credit card company do this? Well, it’s not out of the generosity of their heart. They have made the financial calculations and determined they are better off knowing for certain that they’ll get paid something, rather than not knowing if they will get paid anything.

Settlement companies work with individual consumers to determine a reasonable, monthly amount that they can afford to pay against their debt load. The individual makes the affordable payment every month into a special-purpose account, and as these funds accumulate, the settlement company reaches out to creditors to negotiate a full and final actual settlement amount that they will take. The debt settlement company only charges a fee after they have achieved a satisfactory settlement for you.

Typically, these companies have excellent relationships with creditors and are negotiating on behalf of thousands of people every day. The amount of savings they can obtain for consumers can be significant.

While each situation is different, it’s not uncommon for debt settlement companies to negotiate reductions of as much as 50 percent of the outstanding amount and help get their customer debt free in just a few years.

There are many debt settlement agencies, so how do you find a legitimate and trustworthy company to work with? One great way to start is by calling (866) 488-2066 or visiting Continental Credit, LLC (will@continentalcreditllc.com). They offer a free, no-obligation consultation to evaluate your options. Then, if you choose to proceed, they will develop a plan that meets your specific needs and negotiate it on your behalf with your credit card companies. Continental Credit LLC is fully compliant with all FTC rules.

The holiday of Thanksgiving is rooted in gratitude. When the early pilgrims sat down to dinner they gave thanks for their safety, thanks for the food they foraged and grew, and thanks to the Indians for not killing them instantly! They thanked God for the wonders of this magnificent country and they thanked each other for their support, love and kindness, even as they were frightened about the future, afraid of the coming winter, and missing the security they once knew.  Does any of that sound familiar?  

Giving thanks is not a natural impulse. We say thank you when anyone does something nice for us. By the way, did you know that the meaning of ‘nice’ is ‘socially acceptable’?  Saying thank you is not only polite, but it makes people feel good too.

But the gratitude I want to speak about today is self-gratitude. I am grateful to be alive.  I am grateful for a loving family and lots of great friends who give my life meaning. I am grateful for my wonderful clients who trust me to help them shape their lives and finances, for the thousands of experiences, good and bad, that have shaped my life, for the family, friends, colleagues, and referral partners who have shared of themselves while touching my life and help make me into the woman I am today.

Gratitude is the awareness of all the good things that surround us, and which we consciously acknowledge on a daily basis. That’s why I start with the advice to start a Gratitude Journal. It’s a record of where you’ve been, what has inspired you, and who you would like to acknowledge as part of your history. This is YOUR history of the good things in your life. Writing it down is an act of gratitude that keeps on giving. 

I have several gratitude journals, and at Thanksgiving, I sit down with them, and read through all the amazing times I’ve had, blessed by the people I’ve met, worked with, dreamed with, laughed with, shared my life with and the actions I’ve taken to maintain my life of purpose. It is a blessing to reflect on your life from a gratitude perspective.

Being in gratitude is not hard. Even when things may not be going as smoothly as you would like, all it takes is a moment to reflect on what is right, as opposed to what is wrong with your world. In those moments, we find our gratitude. There is gratitude in big things and in small. Sometimes we just have to look harder.

If you are not actively practicing gratitude in your life, start now. I challenge you to keep a gratitude journal. Write five minutes a day on what you are grateful for that day. Write down the people, places, and actions you feel inspired by, thankful for, and pay attention to the effect you have had on others, and that they have had on you. It does not need to be complicated. It can be as simple as a list. 

Keep that going for the next six months at least, and see what it does to your mindset.

Gratitude is an act of positivity, and when we share our gratitude with others, it is the act that keeps on giving. 

Gratitude is not just a receiving vehicle. It’s also a giving one. We feel gratitude in helping others to achieve something, we feel gratitude knowing we can make a difference. That’s why I love the work I do, and why I love delivering a mortgage or refinance to my clients and customers, I love the blogging and marketing that I do that inspires you to think differently, take different actions, and ultimately help you to create a meaningful life.

How many people do you want to help today by giving them a compliment?  How many people can you help to brighten up their day by doing something for them that they didn’t ask for? What does gratitude look like in your life?

At the top of my list right now is my gratitude for the people who came together to help me create an amazing celebration. This year marketed the Twentieth Anniversary of my life. It was interesting, inspiring, and a good time. I am grateful for the way it all came together, for Pastor Robert McFarland for sharing the pulpit, for Darlene Neptune for sharing her talent and testimony, for my brothers and sisters in Christ who shared this night and experience with me. Without the support, love and passion that the family of God, of those who did so much for me during the years of cancer treatments, surgery, and side effects of the treatments and procedures, I would not have been able to see the light at the end of the journey.

My heart and gratitude go to these outstanding people who are here and those who have gone before us:

Dr. Vince Thompson, my extraordinary surgeon who was diligent in the study and perfection of his skill and knowledge.

Dr. David Strong and Dr. Henry Neuman, the talented doctors who took the extra time and care to make my life after cancer fully functional not an existence and made me feel better all the time.

Karen Rausch, for friendship, sisterhood, toughness when needed, and the tenderness not to let me quit when I was too tired to fight any more.

Karmyn Althaus, for stepping out of the role of “little sister” and became chief care overseer to make sure I had the doctors, medicine, care, and support I needed but did not always want or appreciate.

Kenneth Clopine, cousin above and beyond, who changed his entire life to “help however he could” but always with heart and kindness and generosity of time, talents, resources, and optimism.

Myron Clopine, best uncle who reminded me of Biblical truth, promises, heritage, and confidence.

Lyle and Ruth Clopine, my parents who always step to the plate with what they have and then reach inside for more to support, encourage, kick you in butt, and most of all for their prayers.

Darlene and Dennis Neptune, who came from Florida to encourage, share, uplift in word, song, and sharing of struggles endured and victories won.

Jane Linkswiler, who is there and does “where she can” as only a friend does.

Jayne Blondt, who listen to a higher call and said I can help and then did.

Alyce and Terry Johnson, friends who have been true and faithful over many a valley and mountain path.

Andrew John Althaus, you are something special.  Thank your Mom for sharing and giving me a reason.

Dianne and Larry Matthews, who as adopted cousins stood strong and faithful and loving over the years and never let me be anything but true family.

To Friends and Family, Pastors, and fellow believers, who would not and have not let me quit even when I wanted to finally just go home but have held my hand, my heart, at times my mind, and my spirit and kept me going.

And to the family of Evangel Church who have been so open and loving to the teenager in me as friendships and relationships develop and grow and mature as you allowed me to share my heart.

I am truly grateful for all of you, and thankful that you are in my life to help me be the best I can be.

And last, but certainly not least, I’d like to say how deeply grateful I am for your support and love. There are many that are not on this list and even others that have had smaller roles but have never made it to be more

that I’ve never met, but you send me notes from time to time to tell me how grateful your are for the books I write, the coaching I do, and the opportunities to connect with you that are meaningful. I cherish all of them. And for those of you who keep opening these emails, you may not connect with me directly, although I invite you to do that at any time, I would like to thank you for the blessings of your attention.

This Thanksgiving, ask your friends and family what they are thankful for, and share in the wealth of their gratitude. It is a joyous holiday, and I will be sharing it with my friends and family as I take off a few days to rest and relax and recharge.

Happy Thanksgiving everyone.

In Gratitude,

If you have found this article meaningful, don’t keep it to yourself. Send it along to a friend or a family member that you are grateful for in your life. Tell them how grateful you are to have them there, and then start that Gratitude Journal today. There is much for all of us to be grateful for.

Are you making progress toward your financial goals? Are your finances in order? Are you prepared for a financial emergency? If you're not sure, take time to thoroughly evaluate your finances so you have a road map for your financial life:

Assess your financial situation.

Evaluating where you currently stand financially will help you determine how much progress you are making toward your financial goals. There are several items to consider:

Your net worth. Prepare a net worth statement, which basically lists your assets and liabilities, with the difference representing your net worth. Prepared at least annually, it can help you assess how much financial progress you are making. Ideally, your net worth should be growing by several percentage points over inflation.

Your spending. Next, prepare a cash flow statement, detailing your income and expenditures for the past year. Are you happy with the way you spent your income? You may be surprised by the amount spent on nonessential items like dining out, entertainment, clothing, and vacations. This awareness may be enough to change your spending patterns. But more likely, you will need to prepare a budget to help guide your future spending.

Your debt. Debt can be a serious impediment to achieving your financial goals. To assess how burdensome your debt is, divide your monthly debt payments (excluding your mortgage payment) by your monthly net income. This debt ratio should not exceed 10 to 15 percent of your net income, with many lenders viewing 20 percent as the maximum. If you are in the upper limits or are uncomfortable with your debt level, take active steps to reduce your debt or at least lower the interest rates on that debt.
Increase your savings.

Calculate how much you are saving as a percentage of your income. Is it enough to fund your future financial goals? If not, go back to your spending analysis and look for ways to reduce expenditures. That may mean reassessing your lifestyle choices, since you need to live below your means to find money to save. Commit to saving more immediately and then take steps to make that commitment a reality. For instance, you may decide to increase your savings by $25 a week through your 401(k) plan at work. To do that, you may need to forgo your daily stop for coffee and a doughnut, cut back on how often you go out to dinner, and reduce your monthly clothing allowance. Not sure it's worth that much sacrifice to save $25 a week? After 20 years, that weekly $25 savings could grow to $63,811 at an 8 percent rate of return, before the payment of any income taxes. (This example is provided for illustrative purposes only and is not intended to project the performance of a specific investment.)

Rebalance your investments.

At least annually, thoroughly analyze your investment portfolio:

Review each investment in your portfolio, ensuring that it is still appropriate for your situation.

Calculate what percentage of your total portfolio each asset type represents, compare this allocation to your target allocation, and then decide if changes are needed.

Compare the performance of each component of your portfolio to an appropriate benchmark to identify investments that may need to be changed or monitored more closely.

Finally, calculate your overall rate of return and compare it to the return you estimated when setting up your investment program. If your actual return is less than your targeted return, you may need to increase the amount you are saving, invest in alternatives with higher return potential, or settle for less money in the future.
Prepare for financial emergencies.

To make sure you and your family are protected in case of an emergency, set up:

A reserve fund covering several months of living expenses. The exact amount you'll need depends on your age, health, job outlook, and borrowing capacity.

Insurance to cover catastrophes. At a minimum, review your coverage for life insurance, medical insurance, homeowners insurance, auto insurance, disability income insurance, and personal liability insurance. Over time, your insurance needs are likely to change, so you may find yourself with too much or too little insurance.
Review your estate plan.

With estate tax changing year to year, you should thoroughly review your estate plan.  Estate tax was repealed for 2010, but reinstated for 2011 and 2012. Take a fresh look at your estate planning documents and review them every couple of years as changes in law occur. 

Even if the increases in exemption amounts mean that your estate won't be subject to estate taxes, there are still reasons to plan your estate. You probably still need a will to provide for the distribution of your estate and to name guardians for minor children. You should also consider a durable power of attorney, which designates someone to control your financial affairs if you become incapacitated, and a health care proxy, which delegates health care decisions to someone else when you are unable to make those decisions.

Most people use credit to make a purchase at some point in their lives, whether it's a big-ticket item like a home or car or smaller purchases made on a bank or store credit card. These lines of credit are extended to individuals based on a number of factors that, when combined, determine your credit score. Understanding your credit score may help you understand how to protect or even improve your score, which can impact many areas of your life — not just your mortgage terms.

With credit so enmeshed in everything that we do, it's surprising how few people realize what goes into their credit score. Anyone who is interested in financing a home purchase through a mortgage should have a solid understanding of what goes into his or her credit score. In fact, even some employers are beginning to run credit score checks on prospective employees.

A credit score is a numerical value calculated by a third party that describes how likely someone is to repay a loan. Credit scorers look at a variety of factors including past financial and borrowing history to determine the score. Lenders then use this score to decide how safe it is to lend that person the money they need.

How those scores are calculated depends on the rating system. Most people are familiar with the FICO score. FICO is named for the Fair Isaac Corporation, which was founded by an engineer named Bill Fair and mathematician Earl Isaac, who developed their credit scoring system in the 1950s. It has since gone on to be the gold standard of credit scores — and that should come as little surprise given that Fair and Isaac were true visionaries for their time (Isaac even experimented with artificial intelligence as early as the 1950s).

FICO scores range between 300 and 850 points, with the higher scores telling lenders that a borrower is a low risk, and lower scores denoting a higher credit risk. If your FICO ranks too low, you'll have a tough time finding a loan, and if it's high enough, lenders might offer you competitive terms to secure your business. To provide some perspective, the median FICO score for U.S. borrowers in 2010 was 723.

The FICO credit scoring model is used by the three biggest U.S. credit repositories, Equifax, Experian and TransUnion. For mortgage lending purposes, if three scores are present, the middle score is used. If two scores are present, the lowest score is used.

The factors that go into your FICO score are:
Your payment history on loans and other credit, as well as bankruptcies, delinquencies and past due payments. Late payments, especially multiple late payments, can seriously hamper your credit. Payment history constitutes approximately 35 percent of your FICO.

The number of accounts you owe on and how much. Also, how close you are to your loan limits is important. The amounts you owe impact roughly 30 percent of your FICO.

How long your various credit accounts have been open and how long since each has seen activity. The longer you have had credit, the more it helps your rating, especially if you use that credit, so don't close out old accounts. Fifteen percent of your FICO is influenced by the age of accounts.

Recently opened new accounts. Applying for lots of different credit at the same time will hurt your rating. That said, applying for various loans of the same type in a concentrated period of time, such as a car loan, will not impact your FICO as it denotes that you are shopping for a good loan. Newly opened accounts affect 10 percent of your FICO score.

Types of credit used. FICO scores also rate your ability to manage a mix of different types of credit, such as a mortgage, student loans, car loans, credit cards and other types of credit. This impacts about 10 percent of your FICO.

Remember, your score matters. Make sure to review your FICO early in the process of securing a home loan. Ensure that none of the three credit agencies' reports contain any errors, and appeal to have them removed if so.

Would you like to learn more about FICO scores and how they relate to loan eligibility? I'd love to help. Please contact me via the information on this message and I'd be happy to sit down and meet with you.

*W.J. Bradley is not a credit counseling or financial advisement firm and this information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation or eligibility to secure a home loan.

With housing prices and mortgage rates still near historic lows, now could be a great time to become a homeowner. I recently talked to a caller who had a great credit score and could afford the mortgage payment for the home value she wanted since it would be about the same as her current rent. (In many parts of the country including California and Arizona, it’s actually cheaper to buy than to rent right now.)

There was one problem though. The traditional down payment is 20% of the home value but she only had enough to put down about 10% and was worried about missing years of building equity if she tried to save up the rest over time. If you’re in a similar situation, here are some thing to consider:

You Need More Than the Down Payment

Keep in mind that you’ll also probably have to pay at least some closing costs, which are generally about 2% of the price of the home. You’ll also want to have an emergency fund with at least 3-6 months and ideally 6-12 months of necessary expenses. That’s because the last thing you want is to lose your home to a foreclosure if an unexpected emergency makes it difficult to pay the mortgage.

An Insured Mortgage

You might be able to put down less than 20% by having your mortgage insured against default. One way to do that is with a government guaranteed mortgage. For example, the FHA loan program uses more lenient credit criteria than traditional mortgages, requires only a 3.5% down payment, and has the seller pay most of the closing costs.

There are other loan programs that have different down payment or credit scenarios that may be available to you based on where the property is located, based on your FICO credit score, based on your total financial qualifications.  You need to work with a licensed (not registered) NMLS approved Loan Originator.

Sounds pretty good, huh? Of course, there are costs to this. First, to qualify you typically need 2 years of steady employment with a stable or increasing income, a minimum credit score of 620 with no more than 2 30-day late payments over the last 2 years, no bankruptcies in the last 2 years, no foreclosures in the last 3 years, and a mortgage payment no more than about 30% of your gross pre-tax income. Second, there are limits on how much you can borrow based on where you live. Finally, you have to pay a premium of up to 1% of the loan amount at closing (it can be rolled into your mortgage but that would increase your monthly payments) and a monthly premium of up to .9% of the loan amount each year.

VA loans are another type of government guaranteed mortgage but only veterans on active duty in World War II and later periods are eligible. The loan limits are determined by the lender but generally max out at $417k except in certain high-cost counties. No down payment is usually required at all and there are no monthly premiums. However, there is a one-time funding fee of up to 2.4% that is reduced based on the size of your down payment.

Alternatively, you can get private mortgage insurance. The premiums can vary but are reduced the more you put down. The best part is that unlike with the government programs, the premiums can disappear altogether once you have 20% equity in your home, whether by you paying down the loan, the property rising in value, or (hopefully) both.

Confused? Don’t worry about it. Your mortgage lender can help you decide which programs you qualify for and which one might be most beneficial for your situation.

Piggyback Loans

In this scenario, you would get 2 loans. One would cover 80% of the home value and the other “piggyback loan” would cover the rest minus your down payment. The advantage is that you can avoid paying for mortgage insurance with less than 20% down. The disadvantage is that the piggyback loan has a higher interest rate and often has a “balloon payment” at the end. This is a final payment that’s considerably larger than your normal payments so be sure to save up for it if you’re going to keep the loan that long.

Using Your Retirement Accounts

Finally, there are several ways you can use retirement funds for a down payment. If you have an IRA, you can withdraw up to $10k penalty-free to purchase a home if you haven’t owned one in the last 2 years. This is a lifetime limit for the total of all your IRAs so only use it if you must. If it’s a Roth IRA, the earnings can also be withdrawn tax-free if the account has been open for at least 5 years (the contributions can always be withdrawn tax and penalty free). Otherwise, the withdrawals could be taxable.

If you have a retirement plan at work, you may be able to take a hardship withdrawal or a loan. A hardship withdrawal doesn’t have to be paid back but it’s taxable and subject to a 10% penalty if you’re under age 59 1/2. A loan isn’t taxable but must be paid back with interest. The good news is that the interest goes back into your account and the payments for a loan used to buy a home can often be spread over a longer time period than a regular loan.

The real cost of using your retirement accounts isn’t the taxes or interest you pay but that those funds aren’t growing for your retirement. The more aggressively you’re invested, the greater that opportunity cost is likely to be. On the other hand, you have to weigh that against the value that owning a home can add as an asset that you can later sell or borrow against to help provide for your retirement.

The Bottom Line

If you want to take advantage of today’s real estate market and record low interest rates but don’t yet have the full 20% down payment, be sure to explore all of your available options. Figure out how much each option would cost you in mortgage premiums, interest rates, taxes, and lost investment earnings. Of course, you could always decide to stick with the tried and true old-fashioned method: save for it.

FHA Waiting Guidelines

 Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy.

 You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy

 Foreclosure - You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.

 Short Sale / Notice of Default – You may apply for a FHA insured loan THREE (3) years after the sale date of your foreclosure. FHA treats a short sale the same as a Foreclosure for now.

 Credit must be re-established with a 640 minimum credit score

VA Waiting Guidelines

 Bankruptcy - You may apply for a VA guaranteed loan TWO (2) years after a Bankruptcy is discharged.

 Foreclosure - You may apply for a VA guaranteed loan TWO (2) years after a foreclosure

 Short Sale - You may apply for a VA guaranteed loan TWO (2) after a short sale, unless it was a VA loan then restrictions apply

 Credit must be re-established with a minimum 620 credit score

 Conventional Waiting Guidelines (Fannie Mae)

 Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.

 Foreclosure - You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,

 Short Sale / Notice of Default – Currently treated the same as a foreclosure with a waiting time of SEVEN (7) years before you can buy again using a Fannie Mae conventional home loan.  Credit must be re-established with a minimum 660 credit score.

 Fannie Mae has reduced waiting periods in cases of extenuating circumstances – down to 2 years with larger down payments.

The number of home offices is definitely on the rise. As of 2010, the number of employees telecommuting most of the time totaled 2.8 million, or a little more than 2 percent of the total workforce, according to Telework Research. And partial telecommuting is increasing, as well. As of this year, roughly 34 million professionals work from their homes occasionally, Forrester Research reports. Moreover, Forrester expects the number of people working remotely will nearly double to approximately 63 million telecommuters by 2016.
 
The question is, are these home workers doing it right? Working from home is an entirely different challenge from working in an office. How does someone who's never had to work on their own master the home office setting?

• Defend your space. There will be friends and family members who will equate working from home with you having more free time to visit or chat on the phone. Politely set clear boundaries from the start.
  
• Respect your time. It is all too easy to fall into the trap of giving into distractions. You might decide to multi-task and try to run loads of laundry or start a roast, or even give in to multiple daily visits to your favorite website. Don't. Don't let bad habits start and you'll never have to struggle to break them.
  
• Set a balance. Set a firewall between when you are working at home and when you are living at home. This is not only important because you don't want your work to take over your life, but because this can give your managers and coworkers an unrealistic expectation of what your workload should be — and that can cause you to very quickly resent your home office circumstance.
  
• Maintain human contact. Many professionals are motivated by the general workplace "vibe" and can lose productivity and sometimes grow isolated in a home office setting. If interacting with other people, even to shoot the breeze, keeps you motivated, have a short list of coworkers who don't mind an impromptu, five-minute phone chat. Consider taking a break at a local coffee shop, or meeting with fellow home officers in your neighborhood. Keep these moments brief but regular to stay motivated.
  
• Make your workspace fit you. Conventional home office wisdom says to create a workspace that is apart from the rest of the household to minimize distraction. This is true, but you might find that while a dedicated workspace is important, you do some of your best work at the kitchen table or roaming about. Your best bet is to set aside a dedicated space initially, but monitor your work habits and stay flexible.
  
• Management through strong communication. With today's geographically dispersed workgroups, even managers are often working remotely. The key to effective management is to regularly and routinely communicate via meetings and one-on-one calls and to set and monitor metrics to employee performance. Leverage the work-at-home environment to foster solid independent work habits in your team, but communicate to ensure that each member has the resources he or she needs, and is on-task both tactically and strategically.

Topic Summary: Regulators and Legislators are close to mandating new qualifications for a conventional mortgage. There is much blame to apply as to what caused the 2007-2009 meltdown and stringent terms are now being discussed including 20% down payments.

The recent activity stems from the Dodd-Frank Wall Street Reform and Consumer Protection Act  The Act represents the most sweeping change to financial regulation in the United States since the Great Depression. This act is being phased in now with the intent of creating a stable mortgage market that will have much fewer defaults. The increases in mortgage defaults in the 2007-2009 period were primarily caused by lax standards for approving mortgages. From No-Doc loans on to "no down payment loans", the originator of the loan or the firm creating the security had little stake in whether the loan performed because it was being sold to investors.

In the new provisions, the load originator has to assume 5% ownership in the mortgage before it is sold and packaged in to a mortgage-backed security. This new rule would insure that mortgage originators have some "skin" in the game and do a better job insuring the consumer can repay the loan. Mortgages that meet strict underwriting standards, however, are exempted from this risk retention requirement. These exempted loans are known as Qualified Residential Mortgages (QRM).

The  idea behind QRM is that  defaults rates will be lower as down payments on a mortgage increase. The Dodd-Frank act is suggesting 20% as the down payment level. Many in the industry say that the 20% goes too far and will knock many consumers out of a mortgage. Roughly 39% of homebuyers in 2010 made a down payment of less than 20%, loans that may not have been made had the current risk-retention proposal been in place, according to data from CoreLogic

A bi-partisan group of 30 Senators think the intent of the legislation is fine, but the rules are too stringent. This group of senators sent a letter to regulators asking for changes to insure qualified homeowners will not get shut out of the marketplace.

What's Not Included.

The legislation does not cover Government Sponsored loan programs such as mortgages provided under the FHA, which has much lower down payment requirements. The FHA lending programs are also changing and requiring more down payment funds. There are fears that many consumers will try to get a FHA mortgage if they can, putting pressure on that system which is already on shaky financial ground. FHA loans are provided with limits on the value of the home being financed and in many high cost areas, FHA loans would be unattainable.

Impact For All Homeowners. The introduction of QRMs will increase overall mortgage costs and thereby reduce the pool of potential home buyers, pushing down demand for homes and prolonging recovery even more. The current high supply of homes for sale and homes in foreclosure also dampen home values.  If current homeowners can't sell their home, they are unlikely to buy another one. This chain off events is also having an negative impact on home values all over the country.

I will keep you updated on this issue in future blogs as the updates are posted.

Financing Smart Home Improvements

You've found a great home, but it's a bit rough around the edges and you're on a limited budget. That leads to a number of questions: How much will the necessary upgrades and repairs cost? How much value will they add to the home? How are you going to pay for all this?

Whether you are upgrading to a larger home in a neighborhood you've always loved, downsizing to a smaller home now that the kids are out of the house or even moving to a new state, don't let a house that you love get away just because it needs some repairs or updates — you do have options!

203(k) Loans
A 203(k) loan lets a qualified borrower not only finance the purchase price of the home, but also include the price of the necessary repairs to the home.

Many types of properties qualify for 203(k) loans. Approved improvements include painting, room additions, decks, bathroom and kitchen remodels, finished attics and basements, structural changes and repairs, environmental rehab such as removing lead paint or making energy efficiency upgrades, roofing, flooring or accessibility upgrades for disabled residents.

It's important to note that there are two different types of 203(k) loans available and you'll need to determine, along with your lending professional, which type of loan is right for your particular situation. I'd be happy to spend some time with you to review and determine what might best meet your needs. Here's a quick overview of the available 203(k) options:

• A "streamlined" 203(k) loan is intended for a home that requires only non-structural repairs like cosmetic upgrades (painting, new carpet and appliances, new roof). In addition to the price of the home, you can borrow up to $35,000 to cover improvements.
  
• A "regular" 203(k) loan is for properties that require structural repair, such as room additions, or major landscape work or site improvement. You can borrow the purchase price of the home, plus the price of the improvements, up to 110 percent of the home's expected value after the improvements.

Once you've understood your loan options you'll also want to examine the specific types of upgrades or repairs you'd like to make to your new home.

Eligible Upgrades and Repairs that Make Sense
Whether you plan to be in your new home for a short or long period of time, you'll always want to be mindful about how much your improvements will cost and what type of value they will add to your home.

A good place to review this data is in Remodeling magazine's annual "Cost vs. Value" report. The report is considered a sort of gold standard for the return on investment for various home improvements. This can also serve as an excellent guide towards helping you understand the costs of certain types of upgrades and repairs. The data is available for free on the magazine's site (www.remodeling.hw.net/2010/costvsvalue/national.aspx), and can be broken down by region and even city. It even provides drill-down information on various improvements, including pictures.

Here's a look at some of the top remodeling projects you may want to consider that are eligible under 203(k) loans.

• Minor kitchen remodel. If your new home doesn't have your dream kitchen, this may be a smart choice for an upgrade. While kitchen upgrade costs can be high, Remodeling magazine estimates replacing the cabinet door fronts; adding new hardware; getting a new range; swapping out the counters; laying new flooring; installing a new sink; and painting a dated, 200-square-foot kitchen can bring a 72.8 percent return on investment.
  
• Attic bedroom. Does your new home lack that extra bedroom you desire? You may want to consider converting your attic space into an extra bed and bath. This will not only provide you with more living space but converting an attic to a 15x15 bedroom with a 5x7 bathroom will bring on average a 72.2 percent return on your investment, according to Remodeling magazine.
  
• Basement remodel. Finishing a 20x30 basement area into a bonus room with a bathroom and a wet bar can provide you with a great deal more space in your new home and can also add a good deal of value to it.

Another key trend to keep in mind, presented in Remodeling's latest national data, is that upgrades on the outside of the home offer some of the best value of all home repairs and upgrades. These include:

• Steel entry-door replacements. Swapping out a drafty wood door and jambs for a 20-gauge steel door is the No. 1 replacement in the country.
  
• Replacing the garage door. This improvement takes the No. 2 spot.
  
• Wooden or composite deck additions. In addition to adding ambience to your home, decks can also add to the value of it. For instance, Remodeling magazine data shows that adding a wooden deck with an anchored, 16x20 deck using pressure-treated wood with railings and stairs delivers a 72.8 percent return on your investment.

There are a wide variety of upgrades and repairs permitted under the 203(k) loan programs, so be sure to examine all of your options and determine what makes the most sense for your new home.

Getting Started
Once you've determined the upgrades and repairs you'd like to pursue, be sure you speak with an experienced 203(k) lender that is well-versed in the details of permitted improvements under the program. It is also important to note that FHA rehab loans may take longer to close with a lender that doesn't have experience with them, because there is more paperwork. Working with a lending professional that is experienced with 203(k) loans will help you avoid those delays.

Please contact me using the information on this email, and I'd be happy to review how you can use the right funding to put some shine on that diamond in the rough!

This is not going to be the kind of blog you are thinking about right now, so, please read it all before you start calling me.

Often I wonder what happened to Americans and America.  Not all that long ago, I remember when it was considered the minimum standard of acceptable behaviour:

• to strive to be all one could be
• to learn as much as possible
• to obey the laws of the land
• to reach out and help one's fellowman
• to live your life with honor, compassion, dignity, truth, love, and foregiveness.
• IN SHORT---We expected to be held accountable and our behaviour reflected that belief.

More often than not, today I see the standard of behaviour, conversation, conduct, accountability, and desire to succeed has dropped to such a level that we want others to be all that they can be but not WE, OURSELVES"This is a life-long process not some point that we have arrived on the coat tails of our forefathers and now we can coast.  If we are coasting, it is going downhill at a high rate of speed.

YOUR LIFE WAS YOUR MESSAGE not some Eulogy at the end of your journey, spoken with a smirk by someone who would not have been proud and pleased with you before you passed.

We really need to get back to the basics and start using God-given common sense in our lives, our government, our laws, our applications, and our expectations.  

I heard a comment the other day where someone said "they are dead and just don't know it yet."  Well before America is dead, we need to AWAKEN and return to the principles and practices that made us great as a people, as a country, as a nation. We need to leave this nation GREATER and BETTER than we received it for those who come after us so that they can build an even Greater nation, Greater future, and Greater people than came before them.  But it starts with me, mine, and how that is applied to everything around us.   If me and mine get to be bigger and more important that we and our or at the expense, in any manner, then me and mine are smaller and insignificant in the long run.  Truly GREAT men and women were humble, not boastful, or self-seeking but giving and forthright in all they did.

May WE return to the basics and become once again that Nation committed to those principles and practices that made us GREAT  and it starts with me and mine....  

You May Have too Much Debt But You Also Have Options

If you feel like you're in over your head with personal debt, you're not alone. Millions of Americans have become overextended, many as a result of easy credit and the recessions. Credit cards, medical bills, personal loans, and raising interest rates do not make a good financial mix.

The five strategies you may want to avoid:

The first piece of advice from experts in the field is to be sure you don't make your situation worse by making common mistakes. In particular:

1. Beware of just paying the minimum payments on your debts. This will result in your overall debt actually growing and your problems will only become worse.
2. Beware of relying on friends and family, as it could damage relationships with the most important people in your life.
3. Beware of unscrupulous credit counselors that demand cash upfront or high fees for help they promise, but don't deliver.
4. Avoid taking out a new high-interest loan to pay off lower interest rate loans. It may be easier to just have one payment, but it will actually increase the amount you have to pay back.
5. Declaring bankruptcy when debt settlement may work for you.

Debt Settlement or Bankruptcy?

Two common solutions people turn to are debt settlement and bankruptcy. Generally, if you are struggling with a financial hardship and are behind or falling behind on your minimum payments, then debt settlement may be right for you. If your situation is more dire, then you may consider bankruptcy.

However, bankruptcy is a serious step with long term implications for you and your financial future. Most experts would suggest it only as a last resort. The better course of action is to attempt to work through your debt issue with your creditors, and this is where debt settlement companies can help.

What is Debt Settlement?

You may have heard companies advertising recently that they can settle your debt for less than what you owe. Is this process legitimate?

Working with a debt settlement company could actually be a great solution for many people struggling with a financial hardship. Debt settlement is the process of negotiating with your creditors to get them to reduce a potion of your debt. Specialty settlement companies determine a reasonable monthly amount that you can afford to pay, which is based on total amount owed. You make your affordable payment every month into a special purpose account, and as these funds accumulate, the settlement company reaches out to creditors to negotiate a final actual settlement amount for you. Typically these companies have excellent relationships with creditors and are negotiating on behalf of thousands of people every day.

So, how do you find a legitimate and trustworthy debt settlement company to work with? A great way to start is by visiting Freedom Debt Relief for a free, no-obligation consultation to evaluate your options.

To learn how much of your debt can be reduced, click here.

Like many other homebuyers who consider buying a foreclosed home, Chad Kinney was disappointed when he learned it would be difficult to get a mortgage for the property he chose.

The Fannie Mae-owned house that he wanted to buy needed repairs and would likely not pass the property inspection required by mortgage lenders, he was told. That is when the listing agent suggested he apply for a HomePath Mortgage, which does not require mortgage insurance, a property inspection or appraisal and is offered exclusively to borrowers buying homes from Fannie Mae.

"That was the first time I ever heard of HomePath, so I started researching," he says. "To me, the selling point was my monthly payment is lower and I can get an additional $15,000 for renovations."

Fannie Mae started offering HomePath loans and HomePath renovation mortgages in 2009 to unload the thousands of homes the agency repossesses through foreclosure.

The little-known program has been gaining popularity in recent months, but many buyers are not aware of it and do not understand the pros and cons of HomePath financing until a broker or agent suggest it to them.

How HomePath works

Fannie Mae does not directly lend to buyers. The agency sets the guidelines that lenders need to follow if they want Fannie to buy the loans after they are originated. In the case of HomePath, Fannie allows lenders to finance properties owned by Fannie Mae with as little as 3 percent down for buyers who plan to occupy the home and 10 percent down for investors.

HomePath also offers renovation loans for buyers purchasing properties that need minor or substantial repairs. The financing can be for up to 97 percent of what the home is expected to be worth after the repairs.

Most lenders require a minimum credit score of 660 for borrowers putting only 3 percent down.

Potential buyers can choose from about 80,000 homes listed for sale on the HomePath website (www.homepath.com). The agency acquires thousands of properties through foreclosure each month, but they sell quickly. In the first three months of the year Fannie sold 62,814 properties. Fannie took over 53,549 properties during that period.

W. J. Bradley Mortgage Capital Corp. is one of about 50 lenders nationwide are approved to offer HomePath financing. Most are regional and local lenders.

Advantages of HomePath

One of the advantages of buying a home through Fannie Mae's HomePath is that homebuyers who plan to occupy the house do not have to compete with investors during the first 15 days the property is listed. Fannie prohibits its agents from accepting offers from investors during that period.

Unlike with most other types of mortgages, HomePath financing does not require the property to be appraised, unless the buyer is borrowing money for renovation.

"It is a huge advantage," Many deals relying on traditional or Federal Housing Administration financing get killed in the last minute because the appraisal falls short of the sales price, sometimes by small amounts, he says.

The property does not have to go through an inspection. Buyers should always have an independent inspection prior to purchasing a home regardless of what lenders require so they are aware of the property's condition. But knowing that the lender does not have to evaluate and approve the inspection results is one less concern for the borrower, Rodriguez says.

"Typically, we are concerned about credit, capacity (to pay), and collateral," Rodriguez says. "HomePath eliminates the collateral element. Fannie already knows the value and the condition of the property they are selling."

One of the biggest advantages of a HomePath mortgage is that it doesn't require mortgage insurance, regardless of the down payment amount. With conventional loans, borrowers are required to pay mortgage insurance when they put less than 20 percent down. All FHA loans require borrowers pay for mortgage insurance.

To give you an idea of the savings, a borrower who is buying a $200,000 home with a 5 percent down payment spends about $150 a month on mortgage insurance with a conventional loan.

HomePath has slightly higher rates

But as Rodriguez points out, "nothing comes free."

HomePath mortgages have slightly higher interest rates. Generally, HomePath rates are about a quarter to half of a percentage point higher than the rates on the conventional loans. However, the cost is offset by the mortgage insurance savings, Rodriguez says.

Some buyers can choose to reduce the interest rate by paying points. That adds to the upfront costs, but Fannie Mae often offers closing cost incentives of up to 3.5 percent of the purchase price.

"In the end, the interest rate is higher but the mortgage payment is lower," Rodriguez says.

That was the case with Kinney. He is buying a home from Fannie Mae in Hampstead, Md., for $165,000 and borrowing about $180,000 through the HomePath renovation mortgage. Kinney says that, based on estimates he was given, his monthly mortgage payments are going to be about $50 less with HomePath than with the FHA loan he had considered before. That includes $15,000 to make the necessary repairs in the house.

"By and large, HomePath is the best loan for a homebuyer to buy and fix up a foreclosure asset today," Kluge says.

I meet and learn from Champions every day. Not just in locker rooms but in classrooms, hospitals, homeless shelters, homes and office buildings. I've learned that to be a champion you must Think Like a Champion. Champions think differently than everyone else. They approach their life and work with a different mindset and belief system that separates them from the pack.

1. Champions Expect to Win - When they walk on the court, on the field, into a meeting or in a classroom they expect to win. In fact they are surprised when they don't win. They expect success and their positive beliefs often lead to positive actions and outcomes. They win in their mind first and then they win in the hearts and minds of their customers, students or fans.

2. Champions Celebrate the Small Wins - By celebrating the small wins champions gain the confidence to go after the big wins. Big wins and big success happen through the accumulation of many small victories. This doesn't mean champions become complacent. Rather, with the right kind of celebration and reinforcement, champions work harder, practice more and believe they can do greater things.

3. Champions Don't Make Excuses When They Don't Win - They don't focus on the faults of others. They focus on what they can do better. They see their mistakes and defeats as opportunities for growth. As a result they become stronger, wiser and better.

4. Champions Focus on What They Get To Do, Not What They Have To Do - They see their life and work as a gift not an obligation. They know that if they want to achieve a certain outcome they must commit to and appreciate the process. They may not love every minute of their journey but their attitude and will helps them develop their skill.

5. Champions Believe They Will Experience More Wins in the Future - Their faith is greater than their fear. Their positive energy is greater than the chorus of negativity. Their certainty is greater than all the doubt. Their passion and purpose are greater than their challenges. In spite of their situation champions believe their best days are ahead of them, not behind them.

If you don’t think you have what it takes to be a champion, think again. Champions aren’t born. They are shaped and molded. And as iron sharpens iron you can develop your mindset and the mindset of your team with the right thinking, beliefs and expectations that lead to powerful actions.