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This may seem like a BFO (blinding flash of the obvious) but did you know that the way you manage your debt has a tremendous impact on your credit scores? What may come as a surprise is that there are some very common mistakes consumers make that can cost their credit score 100 points. I am committed to helping you create an overall debt strategy that leads to your long term financial freedom, and as your trusted advisor, I wanted to share this video tip with you of one of the best-kept secrets for improving your credit score. Tune in to discover what your credit card balance to limit ratio should be and what actions you should take if you exceed the suggested limits.

I really appreciate you coming back to look around. If you know of anyone else you think might enjoy my blog, please don't keep me a secret.

3205676821 634f5b27bb m Great News on USDA Home Loan FundsOn July 27th, H.R. 4899, Supplemental Appropriations Act, 2010, passed in the U.S. House, and was signed by the President on July 29th.

Contained in this legislation is the authority needed to raise the guarantee fee in the USDA Section 502 Guaranteed Rural Housing Program to an amount not to exceed 3.50% of the loan amount. This change in the guarantee fee has already been referenced on USDA Rural Development loan approvals (RD Form 1980-18) that were issued “subject to Congressional action.”

This legislation also increases the funding authorization level for the USDA Section 502 Guaranteed Program to an amount that is sufficient “to meet the remaining fiscal year 2010 demand.” Therefore, no additional funding shortfalls in the program are expected for the remainder of fiscal year 2010.

With the passage of this legislation that addresses the current funding lapse in the USDA Section 502 Guaranteed Program, USDA Rural Development will begin the implementation process; which will eventually lead to the elimination of the “subject to Congressional action” language on loan approvals that has been in effect since May 27th . Following the completion of all of the Agency’s internal requirements, USDA Rural Development is then expected to announce the restoration of funding for the USDA Section 502 Guaranteed Program.


Overcome Limiting Beliefs

Overcoming Limiting Beliefs a hand holding a small view into the WorldEveryone has something that is holding them back from reaching their full potential.  Some obstacle that if you could just get around everything would be better.  Sometimes it just takes someone else to help you see how to get over, under, around, or through the obstacle.  Reminds of the scene from Rocky, Adrian you’ve got gaps, but I’ve got gaps and together we have no gaps.

Tonight I watched Tony Robbins new Show on NBC “Breakthrough with Tony Robbins“.  The premise of the show is he changes peoples lives in 30 days.  The guy on the show tonight was paralyzed on what was to be the happiest night of his life, his wedding night.  He was at the reception and had walked over to the water and was dancing the next thing he new he was floating.  From that point he and his wife lost all of the dreams of their future.  He got to the point where he would just wake up take his pills eat a meal, and wait until the next meal and round of pills.  His wife had to help him with everything.  By the end he saw that he could do things by himself and for himself and his wife realized that she needed to let and make him do things himself.  Check out a preview clip of the show below.

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About 12 years ago I had dislocated my shoulders multiple times within a short few moths.  My physical therapist was a quadriplegic.  He had to describe each and every exercise to me in great detail because we was not able to demonstrate or guide me in any other way than through his words.  He had to keep extensive notes on each patients progress most of the other therapists just typed out the notes.  He used Dragon Natural Speaking and had to dictate the notes to the computer along with all punctuation, returns, paragraphs, etc.  He told me that he had always loved physical therapy and he was not going to let his situation dictate what he could and could not do.

When I drop my kids off at daycare there is another dad that paralyzed from the waist down.  He drives his kids to daycare.  When he gets there, he reaches around behind him grabs his wheelchair and unfolds it onto the ground.  He lowers himself into the wheelchair and wheels around to grab both kids and takes them in.  He’s overcome the obstacles.

In College at Indiana University I did Dance Marathon to Benefit Riley’s Children Hospital.  The Dance Marathon is a 36 Hour Dance-a-thon, no one i allowed to leave, or sleep, with just limited breaks.  It starts on a Friday night.  So, to add to the 36 hours, you’ve also been up since early Friday morning.  The last 5 hours it is very tough to stay awake  That’s when they bring in a bunch of the kids from Riley’s Children Hospital.  These are kids that are going through Chemotherapy, or have Leukemia and other ailments, yet they are so full of joy.  You realize that if they can find joy in this difficult time for them you have not right to be tired, or to even think about your problems.  It was great to seem them overcome.

The show reminds me of an old Parable of a Farmer and a Donkey:

Step It Up and Shake It Off

A parable is told of a farmer who owned an old mule. The mule fell into the farmer’s well. The farmer heard the mule ‘braying’ -- or -- whatever mules do when they fall into wells. After carefully assessing the situation, the farmer sympathized with the mule, but decided that neither the mule nor the well was worth the trouble of saving. Instead, he called his neighbors together and told them what had happened…and enlisted them to help haul dirt to bury the old mule in the well and put him out of his misery.

Initially, the old mule was hysterical! But as the farmer and his neighbors continued shoveling and the dirt hit his back…a thought struck him. It suddenly dawned on him that every time a shovel load of dirt landed on his back…HE SHOULD SHAKE IT OFF AND STEP UP! This he did, blow after blow.

“Shake it off and step up…shake it off and step up…shake it off and step up!” he repeated to encourage himself. No matter how painful the blows, or distressing the situation seemed the old mule fought “panic” and just kept right on SHAKING IT OFF AND STEPPING UP!

You’re right! It wasn’t long before the old mule, battered and exhausted, STEPPED TRIUMPHANTLY OVER THE WALL OF THAT WELL! What seemed like it would bury him, actually blessed him…all because of the manner in which he handled his adversity.

THAT’S LIFE! If we face our problems and respond to them positively, and refuse to give in to panic, bitterness, or self-pity…THE ADVERSITIES THAT COME ALONG TO BURY US USUALLY HAVE WITHIN THEM THE POTENTIAL TO BENEFIT AND BLESS US! Remember that FORGIVENESS--FAITH--PRAYER-- PRAISE and HOPE…all are excellent ways to “SHAKE IT OFF AND STEP UP” out of the wells in which we find ourselves!

Bill Phillips, previous owner of EAS had a fitness challenge where he challenged people to transform there body’s in 12 weeks.  During the 12 Weeks the winners usually found that not only had they transformed their bodies but they transformed their lives as well.  One of the biggest take aways I had was that time will never be right.  There will always be obstacles.  If you wait for the right time you will never get started.  You must take the first step.  Begin.

The Story is not where you start.  It’s Where you Take it.

Tony Robbins

What is your limiting belief?  What is keeping you from reaching your goals?  What did you think of the show?

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History Shows That Now is The Best Time To Buy

265805232 be12df4b42 m Why You Absolutely Need to Buy A Home Now
In 1971 Housing Affordability was at its highest prior to this year. Meaning that this is the best time possible to buy.

Let’s Talk Affordability

The chart below plots two things: National Association of Realtors Affordability Index (green line) and 30 Year Fixed Rates (blue line). As you can see on the far right side you have the highest Housing Affordability and the lowest Rates. So, you have the lowest prices, lowest rates, and highest affordability.

What About the ’80′s?

In the period of 1979 to 1984 you have some of the highest interest rates on record.  Yet, still a lot of people purchased homes during that period.  The people that bought homes during that time did well 15 – 30 years later.  My Mother purchased her first home during that time period even though rates where in the 12′s to 18′s.  In 1982 Housing affordability was at its lowest ever.  Inflation kicked in 1975, and rates continued an upward trend through 1979.  So, the Gap between housing affordability and Interest Rates was very wide, the widest of record.

The Best of All Scenario’s

Today we have a very wide gap as well, but in a good way.  Presently because interest rates are so low, home prices are low, and housing affordability is up, the overall risk is greatly reduced.  If the risk was so great in 1982 and homebuyers did okay, how can someone look at the chart today and say that it is riskier than in 1982.

Housing Affordability and Mortgage Rates

What About the Negative News?

That’s the best part if you are a homebuyer.  Trulia recently release a report Showing Sellers Continuing to Slash Home Prices.  This means you are getting an even better price on an already reduced house.  The Department of Housing and Urban Development (HUD) just released there July report card, “The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners.”  This report card shows continued affordability in the U.S. Market.

Historic low rates continue to promote affordability: Families continue to benefit from the lowest rates in history on 30-year fixed mortgages.  Since April of 2009, record low rates have helped more than 7.2 million homeowners to refinance, resulting in more stable home prices and $12.9 billion in total borrower savings.

Simple supply and Demand suggest that since there is not as great of demand now, compared to during the tax credit, housing prices will decrease thus further increasing the affordability (Read Better Deal!)  There are still large amount of houses on the market and many more still in foreclosure.  Both Federal Housing Finance Agency and Standard and Poor’s believe that House Prices are showing signs of stabilizing.

What do you think housing prices and interest rates will do in the next 12 months?


If you are looking to purchase or refinance please give me a call or email Jeremiah so we can get the process started. I’d be happy to get you started.


What is the difference between the interest rate and the A.P.R.?

Thinking about the difference between interest rate and APR
You’ll see an interest rate and an Annual Percentage Rate (APR) for each mortgage loan you see advertised. The easy answer to “why” is that federal law requires the lender to tell you both.  By showing both this can lead to confusion, especially to those First Time Homebuyers.

The Federal Reserve wants the APR to be a tool for comparing different loans, which will include different interest rates but also different points, fees, and other terms. The APR is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate. The problem is that there are many costs associated with a loan, that are not considered in APR.

What Fees Are Included In The APR?

  • Loan Origination Fee
  • Loan Discount Fee
  • Other Lender/Broker Fees (Application, Underwriting, Processing, Tax Service Fee, etc.) – Anything paid to the broker or lender or affiliate of the broker or lender
  • Odd Days Interest
  • Mortgage Insurance Premium
  • Title Closing Fee

While APR was designed as an attempt to make it easier to compare loans, it’s sometimes confusing because the APR includes some, but not all, of the  costs associated with a mortgage. And since the federal law that requires lenders to disclose the APR does not specifically declare what goes into the calculation, APR’s can vary from lender to lender and loan to loan.

What Fees Are Not Included In The APR Calculation

  • Escrow Setup
  • Appraisal Fee
  • Title Insurance

Let’s Throw Adjustable Rate Mortgages In The Mix

The APR on an Adjustable Rate Mortgage (ARM), a loan tied to a financial index, like a 5/1 ARM, assumes the index will never change. The interest rate on an ARM is composed of the index and margin.  Because of the underlying assumption that the index will not move over the life of the loan, the APR can be grossly under or over stated on an ARM depending upon if the index moves up or down over the life of the mortgage.  ARM’s loans were created because the Bank does not have to assume the interest rate risk of a Fixed 30 Year Mortgage, allowing the consumer to get a slightly lower rate, and assume the risk that rates will rise.  These financial indexes have always moved over the course of a 30 year mortgage thus making the APR a difficult tool to compare a fixed rate mortgage to an ARM.

So, APR’s are at best inexact. The lesson is that APR can be a guide, but you need a mortgage professional to help you find the truly best loan for you.

Show What Should You Do?

You as a consumer need to look at two things when considering a mortgage loan

  • The front end costs associated with obtaining the loan, not just those deemed pre-paid finance charges, and thus included in the APR calculation
  • The interest rate, and the total cost of the loan over time.

Here is a Comparison of two different mortgages, both 30 year fixed rate mortgage.

Mortgage Loan Comparison

The first mortgage has an APR of 5.03%, and the 2nd has an APR of 5.25%.  So, if you were to choose a loan simply based on the APR the typical choice would be the 1st mortgage; however, if you will be staying in the home less than 90 months (most loans are only held for 60 months) then the best choice is Loan 2, because the total cost is cheaper.

Make sure you are dealing with a mortgage professional that doesn’t just throw rates and fees at you over the phone. I’ll take the time to prepare a total cost illustration and determine that the loan you select meets your long term objective.