I'm still surprised with how many people I talk to on a weekly basis that hold paying off their mortgage as one of their main financial goals. My first question is always why? And I never receive a good response.
While our parents and grandparents worked hard every day to pay off their mortgage, this is not the best use of your money in today's market. I know their is a huge sense of pride to own your house free and clear, but your equity in your house is not making money for you.Also there has been a large marketing campaign recently about a new program in the mortgage industry that will help you pay off your mortgage quicker.
However, if you leverage your equity in the house and invest wisely (and conservatively looking for a 6% return), you would not only be able to pay off your mortgage within 30 years but you would also have hundreds of thousands of dollars in liquid assets.
Your mortgage should be a part of your financial plan that allows you to accomplish your financial goals quicker. For more information on how you can be using your mortgage to help you meet your long term financial goals please call us.
Prosperity Financial - Your Mortgage Manager
Lafayette, CO
www.colomortgages.com www.3bed2bath.net www.myprosperityfinancial.com
Showing posts with label Financial Planning. Show all posts
Showing posts with label Financial Planning. Show all posts
Monday, March 10, 2008
Tuesday, January 29, 2008
We Can't Pay for Financial Literacy?
A bill has been introduced at the Capitol to bring financial literacy to Colorado Schools. The goal of the bill is to help teach our children about mortgages , personal finances, savings, budgeting and other financial lessons.
What a great idea!!! Let's provide our children with the information and knowledge they need so they don't make the same mistakes we did. We will show them why it's important to save and invest their money, and then HOW TO DO IT. We will teach them why it's not wise to spend your all you money on things you don't need, why it's no smart to max out your credit cards, and why you don't spend more money than you make.
One problem, WE don't want to PAY for it. This new bill would cost about $550,000 to implement in schools around the state. I don't understand how the State of Colorado can't pay for a bill that will save 100 times that in the years to come. Our state spends over $13 million dollars a year for education and recreation programs for PRISONERS in our state. I have an idea, let's spend $550,000 less on convicted felons and use that money for our children.
There was no vote taken on the bill yesterday and funding options will be discussed before a vote on Thursday (1/31/08). Hopefully, they do the right thing.
Prosperity Financial - Your Mortgage Manager
Lafayette, Colorado
http://www.colomortgages.com/ http://www.3bed2bath.net/ http://www.myprosperityfinancial.com/
What a great idea!!! Let's provide our children with the information and knowledge they need so they don't make the same mistakes we did. We will show them why it's important to save and invest their money, and then HOW TO DO IT. We will teach them why it's not wise to spend your all you money on things you don't need, why it's no smart to max out your credit cards, and why you don't spend more money than you make.
One problem, WE don't want to PAY for it. This new bill would cost about $550,000 to implement in schools around the state. I don't understand how the State of Colorado can't pay for a bill that will save 100 times that in the years to come. Our state spends over $13 million dollars a year for education and recreation programs for PRISONERS in our state. I have an idea, let's spend $550,000 less on convicted felons and use that money for our children.
There was no vote taken on the bill yesterday and funding options will be discussed before a vote on Thursday (1/31/08). Hopefully, they do the right thing.
Prosperity Financial - Your Mortgage Manager
Lafayette, Colorado
http://www.colomortgages.com/ http://www.3bed2bath.net/ http://www.myprosperityfinancial.com/
Thursday, November 29, 2007
Don't Refinance to Pay for Gifts
Isn't this the greatest time of the year? The holidays are around the corner, decorations are on houses every where, and people are full of joy. However, this is also the most expensive time of the year. Your making your list, checking it twice, and trying to figure a way to pay for all these gifts. Here are a few ideas on how to ensure that you still won't be trying to pay off your credit cards in July.
Make a Budget: Before you make a list of all the people that you will be buying gifts for this year decide how much money you can afford to spend on gifts. Once you know how much you can spend for the gifts, make you list and assign a MAX dollar amount you can spend on each person.
It's the THOUGHT THAT COUNTS: It's easy to forget what this time of the year represents, it's not about buying expensive gifts to show those we love that we care about them. There are a lot of inexpensive gift ideas that will show the people close to you that you love them. Baking holiday cookies, a picture frame with a picture of you and the person you are giving the gift to, other crafts (there is a lot you can do even if you failed art and crafts in elementary school, like I did. Search the web and there are many sites that will help you with ideas and how to do it. Here is a good site to start your search http://www.thriftyfun.com/). Your kids artwork is also a great gift for grand parents. Frame the artwork with an inexpensive frame and add a quick poem or scripture or picture to the frame.
Give your time: Ahh, we all made coupon books for our parents or brothers and sisters when we were children. Coupon books are great way to show people that you care about them and they allow you to spend more time with people you love throughout the year.
Search for Bargains: For those people on your list that you HAVE to buy some thing for, look online. The Internet is the best tool you can use for holiday gifts, you can shop thousand of stores looking for the best deals from the comfort of your own home.
Good luck with your budget, and Happy Holidays!!!
Prosperity Financial, LLC
http://www.myprosperityfinancial.com/
Lafayette, CO
Managing your Mortgage
Purchase - Refinance - Cash-Out - Home Equity - Great Rates
Make a Budget: Before you make a list of all the people that you will be buying gifts for this year decide how much money you can afford to spend on gifts. Once you know how much you can spend for the gifts, make you list and assign a MAX dollar amount you can spend on each person.
It's the THOUGHT THAT COUNTS: It's easy to forget what this time of the year represents, it's not about buying expensive gifts to show those we love that we care about them. There are a lot of inexpensive gift ideas that will show the people close to you that you love them. Baking holiday cookies, a picture frame with a picture of you and the person you are giving the gift to, other crafts (there is a lot you can do even if you failed art and crafts in elementary school, like I did. Search the web and there are many sites that will help you with ideas and how to do it. Here is a good site to start your search http://www.thriftyfun.com/). Your kids artwork is also a great gift for grand parents. Frame the artwork with an inexpensive frame and add a quick poem or scripture or picture to the frame.
Give your time: Ahh, we all made coupon books for our parents or brothers and sisters when we were children. Coupon books are great way to show people that you care about them and they allow you to spend more time with people you love throughout the year.
Search for Bargains: For those people on your list that you HAVE to buy some thing for, look online. The Internet is the best tool you can use for holiday gifts, you can shop thousand of stores looking for the best deals from the comfort of your own home.
Good luck with your budget, and Happy Holidays!!!
Prosperity Financial, LLC
http://www.myprosperityfinancial.com/
Lafayette, CO
Managing your Mortgage
Purchase - Refinance - Cash-Out - Home Equity - Great Rates
Thursday, November 15, 2007
Plan Right and Never Worry about Foreclosure
The topic of the year in the mortgage/real estate industry has been the spike in foreclosures over the last 9 months. We have reached foreclosure rates that have not been seen in over 20 years and has added more stress on the already weak real estate market. While the media has blame bad loans, wall street, the government, what can YOU do to ensure that you will never have to worry about foreclosure?
Avoiding foreclosure begins before you purchase your house. Purchasing a house is typically the single most expensive transaction most of us will make in our life time. However, most of take more time planning our weekend activities than the purchase of our house. Failing to plan is a plan for failure. There are a lot of details that must be considered and discussed before you start shopping for houses.
1. Plan Wisely
How much can you afford now? How much can you afford in 5 years? 10 years? How long will you live in this house? Are you expecting your family to grown in the next 5 years? A majority of us only think about today and worry about tomorrow when it comes. However, this is a recipe for foreclosure. Interest only (IO) loans and adjustable rate mortgages (ARM's) are not at fault for the problem that we face now. The lack of planning is the problem. While, both loans carry additional risk they both offer great benefits for those borrowers who planned wisely. Before talking to any one (Realtor or Mortgage Professional) develop a personal financial plan for the next 5-10 years. What debts do you have now? What debts will have in 5 years? Consider; growing family, new car, saving 5%-10% of your income, emergencies. I always suggest that you over estimate your debts and under estimate your income (raises, promotions). Once you have considered all factors you can now determine how much you can afford monthly on your new house.
2. Talk with a Mortgage Professional
There are thousands of mortgage professionals available to help you obtain financing for your new house, talk to a FEW of them. It is important that you like and trust the person that is helping you find a mortgage. Make sure the person that you choose will help you MANAGE your mortgage (they will help and assist even after the loan closes). This is important because you want some one that will take care of you after the loan closes. If the rates drop and you can save a few hundred dollars a month, will this person call you? Will they remind you when you rate is going to adjust? Will they help you manage your credit after the loan closes? They should be willing and able to sit down with you and discuss all the options that are available. A good mortgage professional will tell you all the advantages and disadvantages of the different loans your considering. You want to make sure they are willing to walk you through the entire process. Follow your gut feeling, if you are uneasy or don't feel right, find some one else to work with.
3. House Hunting
MAKE SURE YOU STICK TO YOU BUDGET!!! If you can afford a $250,000 house, purchase a house that is $250,000 or LESS. This is a buyer's market and there are thousands of houses available there is no reason to purchase a house that is not in your budget. Take your time and view as many properties as you can before you decide on a house. When comparing houses find out what property taxes, monthly HOA dues, and insurance will cost. Theses additional expenses can vary a lot between houses and will help you stay in budget.
4. Managing Your Finances
You would think they would teach personal finance in high school, since it's a subject that every American will use every day for the rest of their life. Don't use your credit cards if you can't pay it off at the end of the month. Plan on saving 10% of your income every month for retirement or a rainy day. A majority of foreclosures are caused by life time events (death in the family, illness, injury, divorce, loss of job), not because of bad loans. Plan for the rainy day and if you are lucky enough to avoid them you will enjoy retirement that much more.
For more helpful mortgage or real estate information visit us at, http://www.myprosperityfinancial.com/ or call 303.666.6550
Prosperity Financial, LLC
Lafayette, CO
Refinance - Purchase - Cash Out- Home Equity - Great Rates
Avoiding foreclosure begins before you purchase your house. Purchasing a house is typically the single most expensive transaction most of us will make in our life time. However, most of take more time planning our weekend activities than the purchase of our house. Failing to plan is a plan for failure. There are a lot of details that must be considered and discussed before you start shopping for houses.
1. Plan Wisely
How much can you afford now? How much can you afford in 5 years? 10 years? How long will you live in this house? Are you expecting your family to grown in the next 5 years? A majority of us only think about today and worry about tomorrow when it comes. However, this is a recipe for foreclosure. Interest only (IO) loans and adjustable rate mortgages (ARM's) are not at fault for the problem that we face now. The lack of planning is the problem. While, both loans carry additional risk they both offer great benefits for those borrowers who planned wisely. Before talking to any one (Realtor or Mortgage Professional) develop a personal financial plan for the next 5-10 years. What debts do you have now? What debts will have in 5 years? Consider; growing family, new car, saving 5%-10% of your income, emergencies. I always suggest that you over estimate your debts and under estimate your income (raises, promotions). Once you have considered all factors you can now determine how much you can afford monthly on your new house.
2. Talk with a Mortgage Professional
There are thousands of mortgage professionals available to help you obtain financing for your new house, talk to a FEW of them. It is important that you like and trust the person that is helping you find a mortgage. Make sure the person that you choose will help you MANAGE your mortgage (they will help and assist even after the loan closes). This is important because you want some one that will take care of you after the loan closes. If the rates drop and you can save a few hundred dollars a month, will this person call you? Will they remind you when you rate is going to adjust? Will they help you manage your credit after the loan closes? They should be willing and able to sit down with you and discuss all the options that are available. A good mortgage professional will tell you all the advantages and disadvantages of the different loans your considering. You want to make sure they are willing to walk you through the entire process. Follow your gut feeling, if you are uneasy or don't feel right, find some one else to work with.
3. House Hunting
MAKE SURE YOU STICK TO YOU BUDGET!!! If you can afford a $250,000 house, purchase a house that is $250,000 or LESS. This is a buyer's market and there are thousands of houses available there is no reason to purchase a house that is not in your budget. Take your time and view as many properties as you can before you decide on a house. When comparing houses find out what property taxes, monthly HOA dues, and insurance will cost. Theses additional expenses can vary a lot between houses and will help you stay in budget.
4. Managing Your Finances
You would think they would teach personal finance in high school, since it's a subject that every American will use every day for the rest of their life. Don't use your credit cards if you can't pay it off at the end of the month. Plan on saving 10% of your income every month for retirement or a rainy day. A majority of foreclosures are caused by life time events (death in the family, illness, injury, divorce, loss of job), not because of bad loans. Plan for the rainy day and if you are lucky enough to avoid them you will enjoy retirement that much more.
For more helpful mortgage or real estate information visit us at, http://www.myprosperityfinancial.com/ or call 303.666.6550
Prosperity Financial, LLC
Lafayette, CO
Refinance - Purchase - Cash Out- Home Equity - Great Rates
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