"Why the $8,000 First Time Home Buyer Tax Credit Helps ALL Home Owners

"Why the $8,000 First Time Home Buyer Tax Credit Helps ALL Home Owners"

By Brent Sute

Most Americans are not happy about the current state of affairs in our economy OR the fact that our government is getting bigger and bigger. The fact that our Federal government is having to basically print money and take large stakes in the American companies to prevent our economy from falling deeper into trouble would have been unimaginable only a couple of years ago. However, the $8,000 tax credit for first time home buyers is a positive step to restoring our beleaguered housing market and will hopefully spark our economy from deep recession.

Housing led our economy into the current funk and it will help lead the economy out of recession. Even though the $8,000 tax credit is only available for consumers buying their first home (or consumers who have not owned a home in the past 3 years), all home buyers and other consumers will benefit. The current excessive inventory of houses will be eased by the fact new buyers are coming on to the market. Also, current home owners who would like to move to a larger home, or simply have to move because of relocation, now have more buyers that are interested in purchasing their home. Also, many of the foreclosures that are contributing to the excessive inventory in most markets are well suited for first time home buyers who will be receiving the tax credit.

Furthermore, the $8,000 tax credit is available to home owners once they buy a home. Recipients are not allowed to use the $8,000 towards their minimum contribution of 3.5% on a FHA loan. Therefore, a couple of weeks after closing consumers now have the much needed funds to go out and buy furniture, lawn mowers, carpet, and other accessories for their new home. This is absolutely a good thing for local businesses, home improvement centers, and people who offer repair and renovation services.

While the $8,000 is great for improving a newly purchased home, I am advising most of my clients to save a good portion of the money for cash reserves and to pay off high interest credit card debt. This approach will create more healthy financial households which lead in turn to a long term healthier group of consumers.

We have a long way to go before our economy fully recovers from the current down turn. However, the $8,000 tax credit is one thing the government is doing right to help the American economic situation.

$8,000 Tax Credit Soon To Be Accessible at Closing????

$8,000 Tax Credit Soon To Be Accessible at Closing???

HUD Secretary Donovan appeared at a NAR function yesterday, and this is an exact excerpt of his remarks:

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

What does this mean? It means that HUD is puttting the finishing touches on allowing home buyers to access the $8,000 tax credit for their down payment at closing. This will allow more people to access housing, decrease inventory of existing homes, and allow the economy to possibly rebound quicker.

As we receive more information regarding the tax credit, I will pass it on.

Changes, Challenges, and Opportunities

2009's Mortgage Environment - Changes, Challenges, and Opportunities

Some of the issues I've come across in the first two months of 2009 relative to obtaining mortgages:

1. 80% of the loans I am currently originating are FHA loans.

2. Soon, you will likely need a 620 credit score to qualify for a mortgage, including FHA. (Note: many lenders have already implemented the 620 minimum credit score.

Also, underwriters are becoming more and more subjective when it comes to interpreting guidelines and manually reviewing credit. Expect underwriters to ask for documentation they wouldn't have before, perhaps delayed underwriting decisions, and sometimes a bumpy road to closing. With that said, originators and processors are still adjusting to what the underwriters are requiring and we will be able to help our clients manage the process better over time.

3. 70% of my new clients are first time home buyers - the $8,000 FTHB tax credit is certainly helping generate new homeowners.

4. Refinancing can be very challenging in this market; mostly because of appraisal concerns. Even in Alabama, where we lead the country in home appreciation in 2008, we are seeing it difficult to get appraisal values where consumers need them in order to refinance.

5. It is very difficult to predict what mortgage rates are going to do day-to-day, week-to-week, or month-to-month. In years past, it was easier to predict the range in which rates would move based on technical factors, inflation, etc.

6. PMI companies have gone crazy. Any loan with a debt to income ratio over 45% is being turned down by the PMI companies. If you have a 780 credit score and 83% LTV, but a 48% debt to income ratio, you probably can not obtain PMI on your conventional loan. If your debt ratio is under 45% and you qualify for PMI on your conventional loan, your annual rate may be more tan 1.0% of the loan amount.

7. Many state housing finance authority programs are still jam-packed with tools to help consumers. For example, The Alabama Housing Finance Authority's Step Up program is still the best thing going in my opinion. They still have down payment assistance for FHA loans (3% of the sales price; FHA requires 3.5% down), their rates are good (currently 5.5%), you do not have to be a first time home buyer to qualify, and your total household income must be under $97,000.

8. It is still my opinion that first time home buyers should put as little down as possible, unless they have access to lots of money. My reasoning: the MOST important factor in creating financial security is the accumulation of a reserve savings account. If a buyer uses all of their available money for a down payment and leaves nothing back for reserves, what's going to happen if they lose their job? Don't spend your reserves on a down payment if you don't have to. If you do put something down, only do so if you will have enough money in reserves to last several months of payments. To put things in perspective, a 3.5% down payment ($3,500) will only save a borrower about $25 per month on a $100,000 loan. On the other hand, the $3,500 would be enough to make a consumer's mortgage payments for nearly 6 months!

9. I believe the $8,000 tax credit is great for first time buyers because it allows them to pay off debts, accumulate savings reserves, and eliminates the need to use credit cards to buy furniture, home furnishings, and yard supplies after closing. This simply means, if managed correctly, the first time home buyer can live in their new home with a peace of mind that they will be able to afford and sustain their lifestyle.

10. Don't become paralyzed by the news. Understand what is going on, but don't see things worse than they are. Only be concerned with the things you can control, prepare for risks, but don't worry about the things in which you have no control. Also, now is the time to ACT on opportunities that will not be available forever. America will recover and will be better off in the future. There will likely be no other time in our lifetimes where we will see opportunities presented as we have right now. Relative to housing, we have lots of good inventory to choose from, home values that have come down (can you say "on sale?"), sellers that are willing to work with reasonable buyers, tax incentives for first-time buyers, and rates that are within 1/2% of the all time lows.

President Obama Lays Out Plans for Restoring Housing Markets

President Obama Lays Out Plans for Restoring Housing Markets

President Obama just completed a speech given in Mesa, AZ in which he highlighted the specifics of his plans for helping the U.S. housing markets recover.

He laid out a 5-point plan that included the following aspects:



1)Help 4-5 million American homeowners who are upside down on their mortgage (their loan balance is higher than their market value of their home) refinance with Fannie Mae and Freddie Mac. Cost to taxpayers will be zero.

2)Sub-prime lenders to modify terms of loans. Only 12% of mortgages are sub-prime loans, but over 50% of the foreclosures are from sub-prime products. The government is setting forth clear guidelines in which these modifications must be handled. The lenders must reduce the mortgage payments down to no more than 31% of the borrower's income. An estimated 3-4 million home owners may be affected.

3) Ensure liquidity and take mortgage rates low my continuing to buy mortgage bonds secured by Fannie Mae and Freddie Mac. Also, help shore up the liquidity of state housing finance authorities.

4) Help families avoid foreclosure by reducing balances to market values on primary residence homes.

5) $2 billion in grants for local neighborhood efforts in fighting foreclosures.


I was impressed by the President's effort to clearly and specifically explain how he plans to tackle this huge problem. I also liked the fact that he ended by saying that lenders, bankers, and consumers must act more responsibly in the future in order for us to avoid encountering these types of problems again.

Now, what the President said sounds good and hopefully will be successful. The question remains, can they pull it off, execute the plan, while still ensuring our future and the future of following generations. Only time will tell.

Economic Stimulus Plan Benefits the Housing and Mortgage Industries

Economic Stimulus Plan Benefits the Housing and Mortgage Industries

Revised February 17, 2009

Just signed and sealed...a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...


Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing-

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance-This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

First Time Home Buyer Tax Credit FAQ

First Time Home Buyer Tax Credit FAQ
Click on the following link to learn more about the new First Time Home Buyer Tax Credit:

http://www.federalhousingtaxcredit.com/2009/faq.php#9

Inside Story: False Illusions and What You Need to Know About Mortgage Rates

Inside Story: False Illusions and What You Need to Know About Mortgage Rates

(Distributed with the express permission of Sue Woodard and Barry Habib from Mortgage Market Guide)

The Fed's been at it again, offering words that sound encouraging at first blush, confirming that their buying program of Mortgage Backed Securities is in full swing and will continue as needed. Of course, the media will pick this up and offer their own interpretation, saying "Good news, the Fed's words on continuing their purchasing program mean that rates will continue to drop lower, and remain low into the summer..." But is this really what that means? Not so.

Here's the truth.

Yes, the Fed has been buying Mortgage Bonds, but if you look at what they are purchasing, they are buying a lot of FNMA 30-yr 5.5% and 5.0% Bonds...which won't have much of an impact on present interest rates. Why? First, see the Fed's purchases for yourself by hitting this link: Direct Link to View Fed Mortgage Bond Buying - http://www.newyorkfed.org/markets/mbs/index.html.

So why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed...and maybe even a little sneaky...because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced at today's great interest rates.

Stay with me here...

With rates at present low levels, many of the mortgages in these FNMA 5.5% pools being bought up by the Fed will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. And this is likely a big reason why the Fed said they could continue this purchasing program beyond June, if necessary. Bottom line, the Fed buying these higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

Here's the most important part.

Sometimes I talk to clients who are in a situation where it makes sense to refinance right now, and save $250 per month for example. But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save the $250 per month right now, in the hopes of gaining another $30 per month in additional savings with a lower rate than where we stand presently. Now clearly, rates could turn higher, and this window of opportunity could pass them by entirely.

The clincher is this:

Even if those clients ultimately are correct in timing the market, and eventually grab that lower rate and save another $30 per month - think of what they have lost by waiting. While they delayed, they lost the savings they could have gained by taking action sooner - or in the example used, $250 - for every single month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.
I don't want anyone to miss an opportunity by either waiting, or not understanding what is at stake. Let's talk further on this - call or email me and let's discuss what this might mean for you.

If It Sounds Too Good To Be True...

Many of our clients are getting mail from different mortgage companies offering "special deals" for loans. What happens is as soon as a mortgage lender pulls your credit, the credit bureaus sell your inquiry to mailing lists that are distributed to direct solicitation companies who then call or write you about refinancing with them. Coincidence, huh?

100% of the time I have looked at the direct mail solicitation, it has been deceptive advertising a bait and switch scam, or simply not as advertised when the client called to take advantage.

For instance:
A client and friend of mine dropped off a piece of mail he received from a lender in Ohio, I advertised an "effective" rate of 3.35%. Now, since the rates at the time were in the low to mid 5's, I knew this had to be a scam. Sure enough, the "effective rate" was nothing more than a creative calculation. Basically, they were advertising a loan at an above market rate that was set up on a bi-weekly loan program. Well, the bi-weekly loan program is nothing more than a way to make one extra payment per year, thus reducing the interest expense over the life of the loan. They took the actual interest and acted like it was paid over 30 years to come up with the "effective" rate. Sounded good, but come on, nobody can offer rates in the low 3's for a 30 year fixed mortgage. If it sounds too good to be true, it probably is.

Another client that I was already doing a refinance for called about a month ago and read me a letter he received from his current loan servicer. Well, it advertised a "low cost" refinance. It advertised a flat fee of $1,500 or so. The rate was the same rate I was offering my friend, so I recommended he call to research it further and told him if his current lender could offer the same rate for less cost than me then go ahead and go with them. About an hour later he called back very upset saying that they told him the flat fee was simply just the origination fee and there were other fees involved that made the deal not so special. Once again, if it's too good to be true, it probably is.

About an hour ago I spoke with a title agent who recommended a relative to refinance with us. I offered a very fair rate and low costs to the client, but he chose to go with a loan broker out of Texas. I have nothing against Texas loan brokers, I am friends with several. However, this particular one totally messed up the application and my title agent friend is very upset with the broker. As I said, if it's too good to be true, it probably is.

Finally, a few minutes ago I received a call from a repeat client that received a piece of mail from a lender about refinancing. They advertised 4.75%. This is simply another case of a "quoted rate" and a "real rate." Lenders can LEGALLY quote ANY rate they wish on any given day. All they have to do is put a disclaimer at the end of the ad saying that "rates are subject to change." Guess what? do you really believe that lender who receive their business through direct solicitations are going to quote market rates or give advice that matters to customers? No way! There is no way today at 5:00 a lender can quote 4.75% without any discount points. Just isn't happening. Finally, if it's too good to be true, it probably is.

There are 26 variables that go into setting an actual mortgage rate. Some of these items include credit score, LTV, debt ratio, # of days locked, purchase, refinance, cash out refinance, loan type, discount fees, origination fees, property type, PMI, and others. Oh yea, rates have been changing on average twice per day over the past 6 months. If ANYONE quotes a rate, that is all it is. Don't expect to get that rate. Ask for a RATE LOCK GUARANTEE in WRITING along with a good faith estimate of closing costs to make sure the rate you are being quoted is not offset by higher than normal closing costs. (Why do you think they call it "discount fees?"

The key is only deal with a mortgage professional that you know well, or one whom comes HIGHLY recommended by someone you trust.

What I Learned This Month...It's Simple

To say this month was an exciting start to the year would be an understatement!

During the 20 or so business days in January, I bet we had 50+ rate changes.

Underwriting guidelines continued to tighten.

Lenders have come, lenders have gone.

MI companies are much more strict, and pricey.

Risk-based pricing reared its ugly head in the conventional market.

Appraisal values...well never mind.

The government continues to stimulate, dominate, and exasperate.

We have a new president and a renewed sense of optimism by most in this country (and beyond) that is sorely needed.

The stock market continues to tank.

If the government is REALLY buying MBS, why are rates going up?

Only in the mortgage industry do you have massive lay-offs followed by record-level refinance application volumes.

Who's in charge: Bernanke, Paulson, Obama, Bush, Shelia Blair, Kramer (Jim, not Dylan)?

Who's really stimulated with the stimulus package?

Why didn't more clients who wanted 4.25% jump on 4.75% and now are faced with 5.5%?

etc., etc., etc.

What's in store for the rest of 2009? .....I'm not sure, but personally, I'm already tired from information overload. I'm opting for simplicity. I'm going to focus on quality loan applications, and fair, but not crazy pricing of loans. I'm going to reach out and develop some strategic partnerships with a few Realtors and we are going to grow our businesses TOGETHER. I'm going to get to know each and every one of my new clients and make them my friends. I'm going to reach out to my existing clients and let them know I am here for them, as well as their friends and family. I'm going to get rid of all of the "tools" I have except Mortgage Coach and MMG. Simple, I say.

On Monday, my team and I are going to simplify our "system." In fact, we may not have a "system" after Monday, but rather, a "method." Our method will be to just enjoy our clients and make sure their loans close smoothly and on time. Then, we'll ask for referrals.

My point is that we should get back to enjoying our businesses. Stop worrying about the news, the rates, the lending climate, etc. There really is NOTHING any of us can do about those external factors. Focus on making your clients your friends, give them the same advice you would give your mother or best friend, take bullet-proof loan applications, and have fun again.

The key to growing your business in this market (I'm not considering refis growing your business) is to focus on quality and not just quantity. Quality relationships, quality applications, quality advice, and so on.

We have an unbelievable opportunity in front of us. Give thanks, enjoy the moment, and make some friends. It's that SIMPLE.

Don't Be Late on Your Record Rate!

Don't Wait Until It's Too Late to Lock Your Record Rate! (edit/delete)

Let's face it, everyone wants to get the best deal out there. We want to get that house at the bargain basement price, we want to buy the car after making the car dealer say "mercy", and we all want the VERY lowest possible rates on our mortgage. For the past 5 years, with the exception of a few brief moments, mortgage rates have generally been in the high 5's to high 6's. When rates went down into the 4's a couple of weeks ago, many people jumped on the opportunity to get an unprecendented rate on their home loan. However, there were probably just as many people who waited and decided not to lock in hopes of scoring an even lower than record rate on their loan.

More than one person asked me if rates were going below 4.5%.
A few weeks ago, in his annual market review and prediction article, Barry Habib of Mortgage Market Guide mentioned that rates for 2009 would range from 4.5% to 5.5%. As I write this post, rates are generally 5%-5.25%, up from 4.5%-4.75% two weeks ago. I've got a whole list of clients waiting for rates to hit 4.5% again before they lock. My feeling is that they may not get the 4.5% they are looking for, but they very possibly will be able to get an opportunity to lock in the upper 4's in the coming weeks.

For a number of reasons, these rates will not stay at these ultra-low levels for an extended period of time. Some of the reasons include:

1) Inflation Inflation is the arch-enemy of bonds, including mortgage-backed securities. While there is no apparent inflation in today's economy, the busy driving season and the influx of cash by the government will likely cause inflationary pressures heading into the summer months. Even the hint of inflation will be enough to eat away at the price of bonds, sending home loan rates upward.

2) Lender Volume Levels Virtually every lender in the country cut staffing levels this past fall. Couple that with mortgage applications that are up nearly 400% and you have a situation where it is nearly impossible to keep up with the demand. In order to slow down the demand on their systems, lenders are artificially charging mortgage rates higher than the market would normally permit. If mortgage rates are generally 4.75%, and a lender can charge 5% and be at full capacity, they are going to charge the higher rate.

3) Less Competition The mortgage industry is definitely in a transitional period. In 2009 you will see less and less mortgage brokers and indirect lenders in favor of direct retail mortgage banks. The government regulators are encouraging more and more lenders to eliminate wholesale mortgage operations in lieu of direct lending. This in and of itself will cause rates to be slightly higher as mortgage lenders try to keep up with demand and strains on the system as mentioned in #2 by charging slightly higher rates.

4) Risk-Based Pricing Fannie Mae and Freddie Mac are now very much involved with pricing that is tied to borrower's credit scores. A client with a 650 credit score is now looking at a rate 1/2% higher now than they would have gotten a year ago. In fact, any borrower with less than a 720 credit score is penalized with higher rates on conventional loans. Also, PMI companies are MUCH more restrictive with the loans they are insuring and charging premiums that are higher than ever. If this trend continues, it will become more and more expensive for borrowers to obtain financing at good rates.

5) Federal Government Buying Bonds - The federal government is the main reason we are seeing rates as low as 4.5% in the recent cycle because they are buying up to $500 Billion in mortgage bonds. When the federal government STOPS buying mortgage-backed securities, we will see mortgage rates automatically increase. How much of an increase, we don't know.

6) The Market The mortgage rates are at record levels. NOTHING stays at record levels forever. When housing and the economy regain momentum (and they will), you will see rates much higher than they are currently. This is simply a market principle.

In an earlier blog post, I showed the savings of refinancing a loan to from 6.5% to 5%. The payment savings and interest saved over time is mind boggling. The bottom line is this:

If you are likely going to stay in your home for another 5 year or more, it will make sense for you to refinance if you can lower your interest rate by at least 1%.

If you are going to stay in your home 3-5 years, it MIGHT make sense to refinance if you can lower your rate by at least 1.5%.

If you are going to be in your home less than 3 years, you will likely not have time to recover the closing costs it takes to refinance.

Don't let a perfect rate get in the way of great rate. I assure you, there will be consumers around the country who will be stuck paying a rate over 6% who could have gotten 5%, but wanted 4.25%. Take your profits when you can get them; lock in within a 1/4% of the all time low rates; and count the thousands of dollars you will save over the life of your loan.

Financial Planning Steps for 2009

Do you want to secure and sound financial future and reach all of your future goals? Here are the four steps:

1) Cash Reserves - The MOST IMPORTANT step is to accumulate some savings. The over 2 million Americans who lost their jobs in the past year that will be able to make it without perhaps filing bankruptcy are the ones who have the safety net of a cash reserve account. You never know when something might happen and your income will disappear, whether it is a job loss or disability. Also, you never know when you may have an unexpected purchase or expense such as auto repairs, unexpected medical bills not covered by insurance, or when you may need to help an elderly parent. Ideally, you want six months salary socked away somewhere safe and accessible. However, any amount is better than nothing.

2) Pay off Non-Preferred Debt - Non-preferred debt is any debt that is not tax-deductible or carries a high interest rate. Credit cards sap the life out of a financial plan. Pay your cards off each month and use them in the event of an emergency and to help your credit scores. When you pay your cards off, be sure to keep them open with as high of a credit limit as possible, and use them sparingly (one small purchase per month) for maximum points on your credit report.

3) Save and Pay Cash For Purchases - Try to get to the point where you are paying cash for Christmas, birthdays, vacations, and if possible, automobiles. Also, put away as much as possible for retirement, especially if your company matches your 401k contributions. This, of course, requires you to live within your means.

4) Pay off Your Mortgage - Once you have accomplished the above goals, focus on reaching your mortgage freedom point. This is the point in time where your mortgage is paid in full OR you have enough liquid savings set aside to pay it off if you choose. I personally prefer the second alternative since it allows consumers to keep control of their funds through liquidity, preserves tax benefits, and allows you to earn a rate of return.

Note: Imagine the thousands of Americans who have focused on pre-paying their mortgage or getting a 15 year mortgage over the past few years. Many of these consumers believed they were doing the right thing by sending in extra funds to their lender. Well, when some of these Americans lost their job, the bank still wanted their monthly payments. Since some of these well-meaning, proactive, and responsible consumers skipped steps 1, 2, and 3 and went straight to step 4, they lost their homes or are facing foreclosure in the very near future.
Remember these four steps: cash savings/no credit cards/live within your means by paying cash/reach your mortgage freedom point and you will have peace of mind and a very bright financial future.

6.5% vs. 5%...Wow!

Have you ever wondered the difference in payment and interest savings between a rate of 6.5% and 5%?

The savings is significant: $152 per month payment difference, $23,782 interest savings over 10 years, and over 8 years off your mortgage if you continue to pay the 6.5% payment with the 5% rate.
Many consumers will miss out on a tremendous amount of savings trying to time the bottom of the rates and get the "perfect rate". If you are over 6%, don't hold out for 4.5% if you can get 5% currently. It's just not worth the risk.

Mastery Business Plan

This past November, Lenders Who Care made great strides in furthering our cause as advocates of ethical lending practices by having a significant presence at Mastery Business Plan in Las Vegas.

Julie Miller, as always, worked hard along with Tim Harrison (and team), Patti Shaner, Brent Sute, and Chris Tilley in the Lenders Who Care booth in the exhibition hall. We spoke with literally hundreds of mortgage professionals about Lenders Who Care.

Brent Sute was featured in a panel with 4 other lenders in Barry Habib's session entitled "Rising Stars in the Mortgage Industry: Tomorrow's Leaders Today." Brent talked most about how Lenders Who Care has enabled him to be the educational resource in his market through home buyer education classes, Realtor lunch and learns, and other opportunities to promote affordable and sustainable mortgage financing.

Finally, our Lenders Who Care members who attended had the pleasure of networking with many other mortgage professionals and industry leaders. Our group had the opportunity of getting to know many of our leaders on a more personal level. Some of the people we had the honor of breaking bread with included Todd Duncan, Dave Savage, Jeremy Forcier, and Ron Quintero.