Home Equity Loans – Carved Out for Cheap Rate Finance
March 5, 2010
Are you a homeowner and looking for a new loan against your home at low rate? If it is so then go nowhere. Over the years your home value has gone up substantially and so has its equity. It is the equity build-up in home that you can use for taking a low rate loan. Such loans are known as home equity loans. One can say that through home equity loans you release equity in your home for any personal purposes including renovating home, purchasing a car, enjoying holiday tour, for wedding or going for debt consolidation.
Home Equity Loans are second mortgages as these loans are given against equity in your home with the home as collateral. Equity is the amount that you arrive at after subtracting balance payments towards home from its current market value. The lender will approve an amount that is almost equal to the equity. In case of payment default, the lender will surely get back the loan on selling the home. And so, home equity loans are considered as most safe loans for the lenders.
Since home equity loans are approved against equity, these loans carry low rate of interest as lenders are sure to get back the loan. Clearly home equity loans are source of less burdensome finance. But being equity based loans; these involve usually short repayment duration of up to 15 years. However on certain conditions you can return the loan in larger duration also.
Though lenders prefer giving home equity loans to good credit people as it is second mortgage, but bad credit history borrowers also are approved the loan without much fuss over credit. You should be looking for a suitable deal on taking rate quotes of the lenders and comparing them for lower rate. Make timely repayment towards the loan installments for improving credit score.
Eight Dirty Little Mortgage Marketing Sins That Kill Business Growth
February 8, 2010
Little things make a big difference. That’s true in marriage, parenting, and in marketing yourself as a mortgage professional. Too often as entrepreneurs we get caught up in the “thick” of “thin things” and we lose touch with what really drives success in our business.
In the little time we have together I want to remind you (or surprise you) of eight deadly marketing sins that mortgage professionals commit that could be crippling your business growth.
Sin #1 – Working “In” Your Business Instead of “On” Your Business
I was working with a consulting client recently who was in a sales slump. I decided to perform a very simple diagnostic. I simply asked him to send me detailed list with all of their activities for the next three days, email them to me, and then give me a call back. He did his homework and I received email listing all his activities and how much time he spent on them.
With an immediate glance I could tell exactly what his problem was – - he had forgotten what business he was in. After reviewing his activities it was clear that he was in the “putting out fires” business because that’s where most of his time was spent. Rather than working “on” his business he was working “in” his business.
This mortgage professional (and you) should be spending more time working “on” your business doing things like “planning and marketing,” which have a higher long term payoff.
In his popular book, “7 Habits for Highly Effective People” Stephen Covey hammers this point home using his famous “Time Management Matrix.” Dr. Covey emphasizes that too many business owners spend their time doing “urgent – but not important” activities when they should be spending their time on “non-urgent- but important” activities.
Non-urgent – but important activities, such as planning and marketing, generate continued and sustainable long term growth.
Sin #2 – Failing to Create and Use a Marketing Plan
Last year I was speaking at a national mortgage conference and had about 100 mortgage professionals in the room. I asked the crowd to hold up their hands if they had a current marketing plan that they use and refer to on a consistent basis. Only three hands went up!
Even I was shocked. Studies have shown that small businesses that create and consistently use marketing plans experience an average of 30% higher sales than their competitors. Wouldn’t you like to increase your sales by 30%?
Here are a few tips to help you create your marketing plan.
Tip # 1 – Start your plan choosing a specific niche market to focus your marketing efforts
Tip # 2 – Identify your niche market’s problems, fears and frustrations
Tip # 3 – Create a marketing message that offers free information (i.e. special report) that is relevant to your to your target market
Tip # 4 – Break your plan down into mini-plans such as “referral marketing plan”, “advertising plan”, and “postcard marketing plan.”
Tip # 5 – Block schedule 30 minutes every week to review your plan.
Sin #3 – Failing to Implement Systems
A system is a business process that generates predictable, consistent, and replicable results day after day. If you want to see a good example of a system simply visit a fast food franchise like McDonalds or Wendy’s. Notice how they do the same things, the same way, every single time.
Unfortunately, most mortgage professionals never take the time to “systematize” their business, which results in duplication, waste, chaos, and ultimately lost sales. Sin # 1 is partly to blame for not getting around to creating and implementing systems.
Sin #4 – Not Marketing to Your Client Database
Many mortgage professionals believe that once you “close the deal” and the happy client walks out the door, then the deed is done and you need to move quickly on to the next prospect. While that’s true, your next prospect might have just walked out the door!
Many mortgage professionals tend to think, “My client just financed their home through me – - they’re not going to buy another home any time soon so why waste my time on them. Let’s find a new prospect.” The fact is that you should be getting 60% to 70% of your business from your current clients through referrals and repeat business.
In your marketing plan you should be including customer appreciation events, monthly or quarterly newsletters, and greeting cards all designed to stimulate repeat business. In addition, every small business should implement systems that generate “multiple streams of customer referrals.” If you need more ideas for referral systems you might want to visit www.AutopilotReferralSystems.com.
Sin #5 – Not Testing and Tracking Your Marketing Efforts
John Wanamaker’s famous 1886 quote sums it up very well:
“I know that 50% of my advertising is wasted…
…I just don’t know which half!”
There’s nothing worse than spending money on a marketing campaign and not knowing whether it worked. It’s even worse when you continue to spend money on a marketing campaign that you think is working, but really isn’t.
The only way to invest in your marketing efforts with confidence is to test a campaign, track it, and measure your results. That’s why I recommend always offering something of low risk, like a special report, seminar, or audio CD to get people to respond immediately via the phone or your website so that you can track your response.
This strategy also allows you to capture your prospects contact information so that you can continue to follow up with them.
Sin #6 – Not Following Up with Your Prospects
Studies have shown that 81% of all sales happen on or after the fifth contact. If you’re a mortgage professional and you’re only doing one or two follow-ups imagine all the business you’re losing.
Not following up with your prospects and customers is the same as filling up your bathtub without first putting the stopper in the drain!
Here are 4 keys to developing a successful follow-up system:
1. Create a lead capture system that is accurate and reliable.
2. Develop compelling follow-up marketing literature that will drive traffic to your website or phone calls.
3. Systematize the process so that the process happens day in and day out, the same way every time.
4. Automate the system as much as possible using a contact management system and/or an outside mailing house to do your mailings.
Sin #7 – “Spraying and Praying”
Believe it or not, not everyone is a good prospect for your mortgage services. If that’s the case, why would you spend your precious marketing dollars trying to reach them? It doesn’t make sense. If everyone is your prospect then no one is your customer.
Unfortunately, too many mortgage professionals send general marketing message using media like radio, bus stop ads, non-targeted unaddressed mail drops, and general newspaper ads to “spray” their message to everybody and “pray” that enough people see or hear it to make it worth the investment.
Instead of spraying and praying, narrow your focus onto a specific niche market that actually has a need for mortgage financing and then market to people just like them. If your ideal prospect is an apartment renter paying 900+ per month, then find the apartment complexes where those people live and market only to them. Your response rate will go up and your cost per sale will go down when you begin to target your market.
Sin #8 – Not Differentiating Yourself
Did you know that your prospect receives, on the average, over 3, 000 marketing impressions a day! With all that clutter that you have to compete with, how do you make your mortgage business stand out?
How do you differentiate your business in a way that separates you from the competition? Is it with ads that say, “best rates”, “best service “, or “unbiased advise?” Everyone else is saying the same thing! You need to differentiate your business in a way that stands out from the crowd and gets noticed.
A simple way to do that is to keep a close eye on the marketing that really captures your attention and make a note of it. Then borrow and modify those strategies and ideas to create your own unique and compelling message.
Conclusion
It’s true the majority of mortgage professionals are committing one or more of these marketing sins, but you can repent and improve. My challenge to you is to take just one or two sins that you’re committing and focus on improving them. When you’ve got them nailed move on to another sin and overcome it. Business success usually results from commitment to making small incremental improvements over time.
What You Need To Know About Home Equity Loans
February 6, 2010
A home equity loan is a popular and attractive source of borrowing for thousands of people. Part of the reason people think first of a home equity loan when they need a substantial sum of money is that home equity loans are marketed extensively, with advertisement in every medium.
Lenders love home loans because they are highly risk free. Therefore, a home equity loan is easy to get and offers one of the best interest rate of any type of high end loan.
A equity loan is attractive for consumers, not only because of the low interest rate but because that interest can be deducted from income taxes. The outlook isnt completely rosy for consumers who are considering a home equity loan, however.
With any home equity loan you can borrow only up to 80 percent of the equity youve accrued in your home at the time of your loan application. If, for example, your homes current market value were 150,000 and the balance on your mortgage was 70,000 you could borrow 80 percent of the 80,000 equity, or 64,000.
Consumers should not make the decision to take out a home equity loan lightly. Nor should they borrow to the maximum 80 percent just because they can. Borrow only what you have to have.
Not only will this save you money in the long run but a loan officer who sees you being foolish about your willingness to put yourself in debt and your home at risk may think twice about your having the responsibility to pay back your mortgage – and on time.
Sometimes a home equity loan is used foolishly for a vacation or toys such as boats and other things that the consumer could really do without. The borrower assumes that their home will appreciate in value over the term of the loan so it really isnt like borrowing or paying interest, is it?
What if the home doesnt appreciate? What if the local mill or factory or other major employer closes down and the town loses a big chunk of property taxes and people move it and then the retail shops lose money and so forth and so forth. If you dont live in the Mid-Atlantic States or the rust belt talk to people who did or do. Hear what they have to say about the likelihood of this occurring.
No matter where you live downsizings, mergers, company closures, layoffs and buyouts are commonplace. There is just no way to predict that your home will appreciate, your job will be secure and youll be financially better off at the end of the loan and throughout the life of the loan.
A home equity loan, while often a wise thing, and a necessary action, shouldnt be taken on for frivolous desires.
There are occasions, such as lowered home mortgage interest rates and to get out from under high interest unsecured loans such as credit card debt when a home equity loan can save you money and improve your credit standing. When this opportunity arises, assuming you have the equity and can afford the payments, a home equity loan can be a very wise decision.
HOME EQUITY LOANS GIVE FINANCIAL ACUITY
January 27, 2010
Suppose we have performed a initial debt worth ?150,000 on your property. You have paid ?70,000 in final 5 years. Your home worth has additionally increasing to ?300,000 in these 5 years. So your home equity is ?1, 50,000 (?300,000 – ?70,000). Now if we take a home loan worth ?2, 30,000 gripping a home equity as confidence for a debt, afterwards such loans have been called Home equity loan is risk reduction loans. The lenders make make use of of a borrower’s home as material security. Home equity loans concede users to entrance supports depending on a borrower’s mandate in varying amounts up to their credit limit.
For this cause, there have been countless lenders benefaction online. With a particular conditions as well as conditions, these lenders have been starting in for erotically appealing borrowers a single approach other. Availability of home equity loans online has done availing rsther than time-saving as well as present during processing.
REAL ESTATE ACCOUNTING – BEST DEAL TO IMPROVE ACCOUNTING TASKS
January 24, 2010
Anyone in the genuine estate commercial operation would know for certain which Real Estate Accounting is the means of headache, highlight as good as tension. This is given genuine estate accounting is the lot opposite from the normal accounting for alternative businesses. It involves the lot of veteran assistance as the standards as good as procedures have been approach different. Since it’s the order to say the satisfactory set of accounting books, Real Estate Accounting turn critical to the business. In creation the accounting some-more critical infrequently the entrepreneurs themselves dont consider about the commercial operation as good as keep lane of the comment which mostly leads to complicated losses. Neglecting the commercial operation is not the resolution to compromise these problems nor is employing the really costly profession. The veteran will assign the complicated price as good as in these times of retrogression as good as upon starting depression, the CPA comes in as rarely expensive. Real Estate accounting organisation gives the single the only the right approach out.
Real Estate accounting firms solves all your genuine estate accounting troubles in the notation as good as the most appropriate value about them is which they have been the lot cheaper afterwards the normal CPA professional. Below have been reasons since the single should sinecure the assistance of Real Estate Accounting than of any alternative source as good as how it competence be essential for the businessman as good as the business.
The initial value of Real Estate accounting services is which they have been cheap. Way cheaper than normal professional. Hence with the stream manage to buy as good as the price slicing methods this is the undiluted approach out. One can stay in the market, contest with the counterpart organisation companies as good as additionally have full of health increase with only the elementary sensitive preference of employing Real Estate Accounting. Another good is which given it’s the organisation as good as handles the accounts of most companies it knows which policies have been the most appropriate for the association as good as how to show off increase by utilizing accounts.
The second reason since the single should sinecure Real Estate Accounting is given accounts have been similar to the face of the association as good as the lot of people review the accounts. Stockholders, stakeholders, creditors, debtors, clients, impending investors, banks as good as the supervision demeanour during the accounts of the company. Thus to have these people meddlesome the single has to have the accounts demeanour tasteful as good as Real Estate Accounting is the certain shot approach to grasp that.
Real Estate Accounting creates the businessman loose as good as tragedy giveaway as he knows which the tedious as good as paltry emanate of handling accounts is right away handles by professionals during half the cost. The businessman can right away consider of the core aspects of the commercial operation such as growth, acquisitions as good as staying the step forward of the peers. This approach the supports as good as the commercial operation have been good handled.
Lastly, Real Estate Accounting is the bonus for tiny firms as good as large ones as outsourcing increases upon the every day basement as good as the genuine estate marketplace is descending sharply. With commercial operation firms starting broke as good as ruined due to the descending rates of genuine estate, Real Estate Accounting becomes the God sent.