Investment Mortgage Guy

Have you made your New Years resolution yet? Do you want to make 2010 a better year for you and your family financially? Do you cringe when you hear the word budget? For many, good financial management can seem like a daunting task.

Here are some tips that will help you become a better steward of your finances this year:

Tip #1 - Focus on taking baby steps at first. My advice is to spend one hour per night for 3 nights a week for the next 3 months (90days). I promise that if you do, you will be well on your way to setting up some good systems for 2010 that will give you more confidence and peace towards your finances.  Most people never even get started with organizing their finances because they look at the task in it’s entirety and feel completely overwhelmed.

Tip #2 - Use Quicken or a another software product to track and analyze your spending. A great first step to taking control of your spending is actually spending some time looking at what you are spending money on. (big revelation right!) You would be surprised how helpful it can be to download your checking account transactions into a software program and label each item. For example, you may set up categories for groceries, household items, gas just to name a few. In a matter of a few months, you will start see patterns of spending and make decisions with your money. I started doing this myself two years ago. At first, the software program seemed complex and confusing. I made it a goal to learn one new aspect of the program each month. After 12 months, I have learned quite a bit and set up several budgeting and reporting features. I used to hate looking at this information. Now I love it.  Mint.com has a great free service if you want to start budgeting and tracking.

Tip #3 - Get mobile - Most banks now a days have software you can download to your cell phone to get your bank balances and even transfer funds.

Tip #4 - Go paperless - Most major banks, mortgage companies and utility companies will allow you to set up an online account. This has many more benefits than just saving trees. You can make payments online, see your current obligations and have right at your finger tips access to months of history of your transactions with that company.

Tip #5 - Work with good professionals. A good accountant and financial planner can save you thousands with their advice and guidance. I think it’s smart to do your own budgeting but I still want guidance on tax advice and investment and insurance strategies. I rely on people who do those things everyday versus trying to figure out everything on my own.

I hope these ideas are helpful to you. May your 2010 be prosperous and fruitful!

Rob Bonahoom - Mortgage Coach - 651-485-3710

Many investors have contacted me with the drop in interest rates to see if I can help them refinance their investment property. Unfortunately for most, the equity position in their property is too negative for me too help. Fannie Mae however, has implemented a program called DU Refi Plus to try and help the real estate investor take advantage of these lower rates through refinancing. If your loan is currently backed by Fannie Mae, (to find out if your loan is backed by Fannie Mae Click Here) my firm will go up to a 95% Loan to current value and refinance your loan without any mortgage insurance.

Here are some of the stipulations and highlights:

* No Mortgage lates in the last 12 months.

* No limit on the number of financed properties you currently have - This is really nice!

* Your current mortgage cannot have mortgage insurance on it or you have to contact your current servicer for the refinance.  

To get a quick estimate of your property’s current value, I like to go to www.zillow.com

This program will benefit only a small handful of the investors out there looking for low long-term rates, however, maybe your one of the lucky ones who will fit.

For an analysis of your property, please give me a call at 651-485-3710.

I get asked this question at least five times a week. Do you think the tax credit will be extended for the first time home buyers? Well folks, it looks like it’s going to happen.

First Time Home Buyer Tax Credit Extension Details

If the Democrats version of the Senate bill is passed when it comes to vote in the next few weeks (as it is expected to), the first-time home buyer credit extension would have the following details:

• The credit would be available for homes that go under contract by April 30, 2010. However, you would still have 60 days afterward to close.
• It would be attached to a bill to extend unemployment benefits that is expected to be voted on in the next few weeks.
• First-time buyers (those who have not owned a home for three years) can claim an $8,000 credit, the same as before the extension.
• Income limits would be expanded: $125,000 a year for individuals (up from $75,000) and $225,000 (up from $150,000) a year for married couples who are filing a joint return.
• The proposal will include anti-fraud measures, including minimum age requirements and additional authorities for the IRS.

First Time Home Buyer Tax Credit Expanded to Existing Home Owners

Existing homeowners who buy a new principal residence after living in their current home for at least the last five years can claim up to a $6,500 tax credit.

I am excited to see the credit continue and really excited to see it expand into the non-first time home buyer arena. This will help the upper bracket market which is suffering the worst right now. We will know for sure in the weeks ahead.

For now, happy investing!

Register for the seminar by filling out this quick seminar registration form or call 952-808-2820 for more information.

In February 2009, Fannie Mae reversed an earlier October 2008 ruling where they limited the number of properties an investor could have financed to 4. Fannie made it clear in the announcement that they were in support of helping the suffering housing market and that they were serious about financing loans for good risk borrowers who wanted to buy investment real estate. There was a loud cheer from investors around the country. Finally, a decision that made sense!

Now it’s late August 2009, six months after Fannie’s annoucement, and very few lenders have decided to take Fannie up on it’s generous offer. Call it fear or something else, at the end of the day, lenders like Wells Fargo and JP Morgan Chase who are actually making the loans to consumers decide which policies they want to adopt and thus far, lending on more than 4 financed properties is not one of them.

I work for Cornerstone Mortgage, a Houston based company that funds about $150 million in loans monthly. We have lending relationships with every major lender in the country and so far, none of them are allowing us to originate borrowers with more than 4 financed properties through our normal correspondent lending channels.

I can however broker them, currently, I have two outlets on the broker side. The downfall of brokering loans is that I have no control over the appraisal or underwriting. The loan gets shipped and underwritten by people who don’t know me or my clients and sometimes even my market. I don’t like to do this, but right now. it’s the only option I have.

Hopefully soon, the lenders will follow Fannie’s guidance and start lending on these loans again.

Make is a great day!

Rob Bonahoom

Mortgage Coach

952-808-2820.

The Bible commands us not to worry. Luke 12: 22 -26 says “Then Jesus said to his disciples:Therefore I tell you, do not worry about your life, what you will eat or about your body, what you will wear. Life is more than food, the body more than clothes. Consider the ravens, they do not reap or sow, they have no storeroom or barn, yet God feeds them. And how much more valuable are you than the birds. Who of you by worrying can add a single hour to his life? Since you cannot do this very thing, why do you worry about the rest?

 The world’s view of worrying however has been made to look a lot different.  The world has actually made worrying look like a responsible task. After all, not worrying about your kids, job or family just doesn’t seem like the right thing to do. God, however wants us to be in a place of trust and peace with our responsibiities. This is a not a passive sit back and do nothing approach. In fact, it’s just the opposite. His intention is for us to be on a daily walk and commune with him. When we are, he will guide us moment by moment on the steps and decisions we need to make. Thus if we have HIM, it’s all we need. Everything else will be shown or given to us when he knows we need it.

I recently went on a five-day fast and God revealed to me my issue with this. As I looked at my life, I tend to worry about everything. I worry about what people think of me, my finances, my loans (I’m a Mortgage Banker), and on and on. Worry is fear. Fear is from Satan. Thus if I am living in worry. I am not living in God. The goal for myself and my challenge to you is to take your thoughts captive (as Paul teaches us in 2 Corinthians 10:5) and leave worry behind so you can start to focus on trusting in Him. For everything!

Proverbs 3:5-6 says “Trust the Lord with all your heart, Lean not on your own understanding; in all your ways acknowledge him and he will make your path straight.” (My favorite verse in the Bible)

Make it great day! - No Worries!

Rob Bonahoom

This is a FREE all day workshop designed for the new and seasoned investor. This event will feature a full panel of experts in the area of financing, tax, law, 1031 exchanges, financial planning, rental management, insurance and much much more. You will leave this day will real tools to integrate into your investment plan as well as some excellent profesional contacts for your rolodex. Six hours of real estate continuing education have also been approved.

Featured speakers will be as follows:
Rob Bonahoom Mortgage Coach
Greg Nelson CPA
Jeff Peterson 1031 Specialist
Matt Engel - Attorney
Adam Hartung - Certified Financial Planner
Brent Mohlenhoff - Insurance
Nina Haugen - Rental Management
Bruce Zimmerman - Rent Collection
Peter Fanucci - Credit Lines

This event will be held at the Olsen Thielen Building at 2675 Long Lake Road in Roseville. To register, please contact Rob Bonahoom at 952-808-2820.

Have you always thought about buying investment properties?  Attend this FREE one and a half hour seminar. There is no charge at all, no contracts you sign with us, no consultation fees, no hidden agenda. This seminar is an excellent opportunity for you to learn more about our process and meet a team of investment real estate professionals that can guide through the finding, financing, buying, renting and owning your first investment property.

Register for the seminar by filling out this quick seminar registration form or call 952-808-2820 for more information.

We are close to half way through 2009 and we have seen rates lower than they have been in a long time. Many homeowners have been able to take advantage of rates in the 4% range.  Lenders are busy again all over the country.  The concerns for refinancing today are different than those of previous refinance booms. The number one question people ask me today is, “who are you selling my mortgage to?” The fear of a lender failing has never been more top of mind and many of my clients are very concerned about being in the hands of the next bank to go under.   A few years ago, people really didn’t care who their mortgage was with and even the lenders themselves, traded paper (which is your mortgage) back and forth like it was going out of style.

Many of my clients have a particular lender they would prefer to have their mortgage with long-term either because they have other accounts there or have always had their mortgage there in the past and they are comfortable with it. The problem is that if they were to go direct to there favorite mortgage lender, they are running 60 to 90 days to complete a refinance right now.  Some banks are so busy right now they won’t return your call even if your willing to wait. Lenders are way under staffed for their work load but are afraid to hire more people in this economy. The problem with that is they won’t lock you in until 30 days before closing. With rates as volatile as they are right now, you could lose out on a great rate waiting for your lender of choice to get your loan closed.

At Cornerstone Mortgage, we underwrite and fund all of our loans but sell most of them to other banks. We have relationships with Wells Fargo, US Bank, Citi, Bank of America, Chase, GMAC and several others. Our business model allows us to close your refinance in 30 days or less and we can sell directly to the lender of your choice.  You truly can have your cake and eat it too!

For more information on how this works, give me a call at 952-808-2820.

Rob Bonahoom

Morgage Coach