Legacy Lending Group - The only spot to find your Idaho Mortgage or Idaho Home Loan.

A couple of years ago I decided to take the family on a week long vacation up to Northern Idaho and over to Glacier National Park.  We spent over a month preparing out all of the details of the trip: food, sleeping arrangements, camping gear, etc.  Of course, no family vacation is complete without fishing gear, including the boat.

Our boat, you see, gets used pretty frequently as we're a big fishing family.  The tires on the trailer were a little worn and needed to be replaced before our 1,200 mile round-trip journey.  After getting the boat and trailer back to the house I had this sneaking feeling that I needed to double check all of the lug nuts on the trailer wheels...but, of course I didn't.  The guys at the shop were professionals and I'm sure they did their job, right?

We took the scenic route on the way up to Northern Idaho...up through McCall, Riggins, Grangeville, Lewiston then up the windy grade to Moscow and ended our first day's travels in the beautiful town of Sandpoint.  I was super eager to get the boat on the water early the next day for a good, solid day of fishing.

As I rounded the last corner before the hotel I happened to look back at the left tire of the trailer and saw it wobbling like one of my favorite fishing lures.  I immediately pulled over thinking I'd avert a disaster, but as soon as I applied the brakes - CRASH

- off came the whole wheel!  Now, I'm not talking about the tire off the wheel...I'm talking about the whole wheel came off the trailer slamming the axle on the ground.

What had happened was the guys at the tire shop had over-torqued the bolts and broken three of the six on that tire.  There were only three bolts (all on the same side) holding the wheel onto the axle.  The 400 mile drive on winding roads caused the other bolts to weaken and eventually break.  If I would have only checked the dang things when I was home I would have never had the problem on vacation!!!

Have you ever had one of those moments?  One of those "I wish I would have done this or that" moments?  I'm sure you have...we all have!

Here's a perfect time to do something to avoid having one of those moments later this year.  Check out what the Washington Post has quoted Freddie Mac about the mortgage environment later this year (as in the next few months).

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/25/AR2009122501652.html

If you haven't taken advantage of the 30 year lows on mortgage rates to refinance your home, know someone that's thinking of buying a home, or looking at buying a new home yourself...then NOW IS THE TIME TO ACT!!

Don't say to yourself "yeah, I really need to call Legacy soon" because you know tomorrow will turn into next week, next week will turn into next month, and next month will turn into later this year...and YOU'LL MISS THE BOAT to save yourself thousands of dollars.

All you have to do is give us a call or reply to this email and we'll do all the work.  We really do want to help you and the people you know save loads and loads of money!

Don't let this turn into another one of "those" moments!

Call Legacy today to see about your Idaho Home Loan or to secure a new Mortgage!

By the way, the fishing trip ended up amazing!  I had to make a few calls to some local tire guys that weren't real impressed that I was calling them at home on a Friday night, but we managed to get the boat fixed and had an awesome trip.  Gorgeous country, amazing people, and lots of big fish.  Here are a couple of pictures.

Heading in to the winter months is alwasy a stressful time for my family.  Not only do we have to deal with the month-to-month finances, but we get to throw the holidays in the mix.  Travel costs, gifts, extra meals, and charitable donations...how do they all fit in?

Additionally, when it comes to trying to put your finances in order so you can purchase your next dream home...how can you fix your 'cash flow problems'?  Seems like more and more we're dealing with people who are living paycheck to paycheck.  How can we make headway if we're living this way?

I found this article that really helped my wife and I reprioritize how we wanted to manage our home.  I though you would enjoy it as well.

This will not only help you create less stress in your life, but will also put you in a position to 'weather the storm' that we're currently dealing with AND hopefully put you in a position to buy that next dream home!  I hope you enjoy.

Secrets to Creating a Budget

    You'd never set out on a cross-country road trip without consulting a map.  And, likewise, you can't expect to reach your financial goals without developing a plan for spending and saving.  Indeed, budgets play a pivotal role in helping consumers pay off debt, feather their nest egg and make the most of their hard-earned dollars.
    Yet, despite their best intentions, many Americans lack the money-management skills necessary to get their bank accounts under control.  Why?  Often, it's because they don't know where they stand, says Jim Tehan, a spokesman for Myvesta Foundation, a self-help consumer education Web site.  "People write out budgets all the time without knowing where their money is really going," he says.  "What they've created is a wish list of how they'd like to spend their money, but it's not realistic.  It's a page of lies."

Follow the money: Track your spending
   
    The first step to developing a budget, says Tehan, is to track your expenses for at least a month, using a checkbook ledger, a sticky note inside your wallet or a daily expense work sheet.  Be sure to record every purchase no matter how small, including ATM fees.  "Once you know where your money is going, you can make an educated decision about how best to allocate your money," he says.
    Many novice budgeters make the mistake of becoming too financially conservative, at least on paper.  "The No. 1 rule of setting budgets is to not cut all the fun out of your life.  Inevitably, Spartan budgets that have no allowance for entertainment are doomed to fail."  Instead, learn to moderate. "If you're eating out every night, and that's something you enjoy doing, try eating out once a week instead," says Tehan.  "It's not about cutting out everything that gives you joy in life.  It's about better allocating your money."

Make savings contributions automatically

    Though every budget scenario is different, Curt Weil, a Certified Financial Planner for the Lasecke Weil Wealth Advisory Group in Palo Alto, Calif., says a good rule of thumb is to allocate at least 10 percent of your earnings toward savings, using direct deposit to pay yourself first.
    Short-term savings that you may need to access can be held in an interest-bearing savings account, six-month certificate of deposit or money market fund.  Long-term savings, meanwhile, should be directed toward a tax-friendly retirement savings tool, such as an individual retirement account, or IRA, or 401(k).
    The ultimate goal, of course, is to maximize your 401(k).  But those just starting out should contribute at least enough to get the employer match, says Weil.

Define spending and priorities
   
    Another 35 percent of your earnings, he says, should be earmarked for housing and utilities.  Weil says, however, that homeowners can often up that percentage since principal payments are already a form of forced savings, and the mortgage interest they pay is tax-deductible.
    If you're saving for something specific, such as a new car or your child's college education, you may want to set aside another 10 percent of your earnings into an interest-bearing account or a tax-favored 529 college savings plan.
    Everything else -- the remaining 45 percent-- is discretionary, for use on food, entertainment, clothing and vacations.  That's where priorities come in.  You can't have everything you want, says Martin Siesta, a Certified Financial Planner for Compass Wealth Management in Maplewood, N.J., but you can direct your dollars toward things you want the most.  "If consumers start by deciding what's most important to them, then cutting back on some of the things that aren't that important isn't really a sacrifice," he says.

Pay with cash

    One you've determined how much to set aside for saving, spending and investing; it's time to make those numbers stick.  The growing popularity of credit and debit cards makes it all too easy to overspend.  With the exception of your mortgage and car loan, most consumers should implement a strict policy of paying with cash for groceries, clothes, vacations and nonessential items.
    Siesta also recommends relying less on ATMs, especially those that charge a fee.  Withdrawing a fixed amount of discretionary money at the beginning of the month, he says, forces you to make better spending choices.  "By spending cash out of an envelope you begin to get a better feeling for where your money is going and what your priorities really are."

Strategically pay down expensive debt   

     Financially speaking, of course, you'll never get ahead if you don't also implement a plan to pay down your debt.  Interest payments made to credit cards not only cost you big, but also deny you the ability to apply that money toward savings or entertainment.
    "I approach it from an investment point of view," says Weil.  "Not having to pay interest is the same, economically, as earning interest.  So not having to pay credit card interest is like earning 18 percent."
    Conventional wisdom maintains that consumers with multiple credit card balances should tackle the card with the highest interest rate first, while continuing to make minimum payments on their other cards.  Once the first card is paid off, focus on the next highest rate card.  Tehan contends, however, some debt-laden consumers get a psychological boost by paying off the smaller balances first.  "Paying off your highest rate card first makes sense because it saves you the most money, but if you have several smaller cards it can be easier psychologically to get those out of the way first.  That way you can see some immediate progress, which gives you a little boost," says Tehan.
    The secret to paying off debt is to determine how much you can afford to send each month and make those payments consistently.  "It's important to keep sending the maximum amount you can afford to send," says Tehan.  "Some people make the mistake of reducing the amount they send when they see their payments going down."
Build a safety net
    No matter what your debt situation, you should also begin saving for a rainy day.  Financial planners recommend setting aside three- to six-months' worth of living expenses into an emergency fund, in case you or your spouse lose a job, fall ill or get hit with an unexpected bill.  "It's important to set aside savings while you're paying off debt," says Tehan.  "It may sound backward, but if you don't have an emergency account and you pay down your credit cards for six months and then an emergency pops up, all the progress you have made is going to be instantly wiped out."
    The most painless way to save, of course, is to set aside any financial windfalls you receive, such as bonuses, tax refunds or yearly raises.  You could also try saving your change or any $1 bills that find their way into your wallet.

Live within your means   

    Learning to live within your means is a simple matter of spending less than you make.  For most consumers, that means cutting back.  It does not mean doing without.
    According to Siesta, there are dozens of ways to reduce your monthly expenses without crimping your lifestyle.

* If you're paying multiple credit cards, consider rolling the balances over to a lower rate card, taking note of any introductory rates that may expire.
* Still have an adjustable-rate mortgage, or ARM?  If you're planning to stay put, refinance to a fixed mortgage before interest rates climb any higher.
* If you're paying private mortgage insurance, or PMI, check to see if it can be canceled.  Under the Homeowners Protection Act of 1998, servicers are required to automatically terminate PMI on loans originated after July 29, 1999, when the loan is paid down to 78 percent loan-to-value, which means you have 22 percent equity in your home.  In some cases, you can request PMI cancellation when your equity reaches 20 percent.
* Slash health-care costs by ordering generic medications through a mail-order pharmacy.  "If you're taking a medication regularly, you can save a lot of money using a mail-order service," says Siesta, noting consumers should consult their medical plans first.
* Depending on your family's needs and comfort zone, you can also save big by raising the deductibles on your home and auto insurance.
* Don't be afraid to play hardball.  Many consumers today continue to pay more than they should for cable TV, Internet service and local and long-distance phone plans.  By approaching your current providers with more competitive offers and a threat to switch teams, you can often significantly lower the rates you pay.
* It's equally important to pay your bills on time.  Not only will you avoid late fees, but you'll keep your credit score clean, which rewards you with the best possible rates on future loans. 
And above all else, stop trying to keep up with the Joneses.  Your neighbors with the latest clothes and luxury cars may be drowning in debt, and while you may not sport a designer watch, you will be able to sleep at night.
 
By: Shelly K. Schwartz, www.bankrate.com
 

If a man walked up to you and said, "I hold in my hand something that will give you an edge to be better than ANY of your competition."  If he told you that you were being selected to have this 'something' and that it wouldn't be offered to people for long...would you take it?

What if this 'something' cost absolutely nothing, came with 'no strings attached', and had a proven record of making you better?  It sounds like only a fool would turn this down, right?

That 'something' is exactly what we're now giving to the next 19 Realtors or Builders.  We've opened our Stun The Competition email education program again, but only to a select few. 

This program is not for everyone...in fact, if you're way too busy with listings and sales right now, have a 'system' in place to move buyers from prospects to closed deals, or are a wiley vetran of the real estate business and really don't want to try new techniques...then this is definately NOT for you!

However, if you are a person who likes to receive proven sales and marketing tips from nationally recognized professionals, can take information and ideas and implement them into your practice, and have a burning desire to be the absolute best in the business...then you can't afford to miss this opportunity.

This program is only open for the next 19 realtors or builders that sign up.  There is NO COST, NO OBILIGATION, and absolutely NO STRINGS ATTACHED.

If you are one of these people who want the edge or know of someone that would benefit from this information then sign up IMMEDIATLY at http://www.legacylendinggroup.com/agents.html.

Here's just a sample of some of the things you'll learn:

• 7 Steps to Immediately Increase Your Sales By 20% or More
• Top 10 E's to Motivate and Influence an Audience
• Why Referral Sources Go Sour  and,
• The Power of Persuasion: Logic, Emotion, and Character

If you're planning on making a career out of your current business then you really can't afford to miss this opportunity. 

Go here immediatly and sign up now.

I’ve started a new email education sequence geared specifically for Real Estate Agents and builders.  I’d like your help getting the word out to realtors or builders you know.

There is NO obligation, NO solicitation, and NO cost.  We are not going to do anything with their information other than give them resources to build their business and make them better.  The purpose is to mutually motivate each other through weekly sales tips, referral marketing ideas, and useful industry specific information.  The articles and sales tips come from nationally recognized professionals.

Please forward this to any realtor or builder you know who would benefit from being involved with this free education sequence.

Here is the link to the signup page - http://legacylendinggroup.com/agents.html

You have most likely heard about the $8,000 first time homebuyer tax credit made available to anyone purchasing a primary residence that has not owned a home in the last three years.  This program has helped many people "get off the fence" and purchase their first home.

Originally this program had an expiration date of November 30, 2009, which meant that the transaction had to close previous to this date.  This is still the case... however, there is a proposed bill currently awaiting approval that would effectively extend this $8,000 tax credit through April 30, 2010.

It is important to note that this bill has not passed the house yet, however most of the "experts" say that they anticipate this bill to be signed into law sometime this week.  Our company  applauds this legislation as we feel that it is actually making a measurable impact & putting money back into consumer's pockets.

Another proposed addition to this new tax-credit extension is a $6,500 credit for CURRENT HOME OWNERS wanting to upgrade to a newer home.  It is currently proposed that if you've lived in your current home for 5 years or more and purchase a new home before the April 30th deadline, you'll be able to receive a $6,500 credit!  That should really help keep the positive housing news going.

Lastly, for those of you who haven't had a chance to tune into the Financial Insights radio program on 630 AM each weekday from 4:00-5:00 please do so.  Or, you can listen live on the web at http://www.kido.net/pages/main. We are privileged to have been invited as guests on the show and will be taking phone calls & discussing mortgage related topics this coming Thursday November 5th.  The phone number to call in is 208-342-6363. Call in, we'd love to hear from you.

Make it a great week!

We've worked very hard over the last challenging year to not only maintain business, but actually grow our firm.  With that in mind we're excited to announce what is new and exciting

for Legacy Lending Group.

We were approached in March with an opportunity to be a part of a local financial radio talk how. The host and planners of the show have done business with Legacy Lending Group and were encouraged by our business philosophy & practices. They invited us to join their team as they felt we would be able to add value to the show.  After a six month due diligence process, we have decided to participate in this venture.

The mission of the show is to provide financial expertise & information to a broad base of listeners leading to increased financial planning awareness and eventually financial security to those who listen and act on sound advice.  This is not a 'mortgage specific' show.  It will cover a great range of financial topics.  We feel strongly that you'll really enjoy the format and content.

The radio is a great medium to reach a broad audience. We are a part of a team of local experts that will also take part in this daily radio show, including a local financial adviser firm, a CPA firm, estate planning firm, and real estate professionals that are among the best in their field. An individual that hosted a financial radio show for the last eight years will serve as the full-time host of the program.

We hope you will consider tuning into the show yourself and providing any feedback you may have.

The show will be broadcast Monday thru Friday on 630 AM from 4:00 pm to 5:00 pm.

If you can't get it on your radio then log on and listen to it on-line.  http://www.580kido.com/pages/main

Over the last three months we've had several calls from people just like you wanting to refinance, but because they're current appraised value is as high or higher than their current loan, there was nothing they could do.

That is until now!!  

Starting October 1st Freddie Mac will allow servicer to servicer refinances up to 125% loan-to-value!

What does this mean to you?  Well, chances are good that Freddie Mac owns your loan and if that's the case then you need to listen up close!

See, before now in order to participate in the REDICULOUSLY LOW interest rates you had to return to your current bank.  In a lot of cases, those banks were out of business or no longer originating any new loans...so you were basically out of luck!

Now, however we have a solution for you.

You need to immediately go to https://ww3.freddiemac.com/corporate/ and check to see if Freddie Mac owns your mortgage.

If Freddie owns your mortgage and you're wanting to take advantage of interest rates currently as low as 4.75% then give me a call right away.

As always, these rates won't stick around long...maybe not even through the end of the day, which means if you don't act right now it could end up costing you thousands of dollars over the life of your loan.

I know, I know...you hear that line all the time, but in this case it's actually true.  

Did you know that a difference of only a half percent (.5) on a loan of $200,000 is a difference of nearly $23,000 over the life of your loan?  TWENTY-THREE THOUSAND DOLLARS!!!  That's a new boat, or a couple trips to Europe or part of a college education!

Take advantage of these rates right now!  And if you think this could help a friend or neighbor then feel free to forward this message to them as well.

Let’s be honest, Most of us didn’t know this. We probably know, however, that during the 2009 MTV Video Music Awards this week, Kanye West stormed on stage as Taylor Swift was receiving the Best Female Video award.

In reality, the news about the space shuttle is more relevant and should be more important to our future. But as normal people, we block out a lot of the information that can benefit us and latch on to what we find, or our friends find, interesting at the moment.

If you’re like me, you get tired and numb of all the numbers being thrown around. Anything political or financial puts a bad taste in your mouth and whether you really care about the MTV awards or not, it is more interesting although not more important at the moment.

Here's another tip that you'll probably gloss over unless it's relavant to you at this very moment.

I had a client ask me today if it made sense to buy their rate down since rates were already so low.  It's a great question and it honestly depends on each individual situation.

There is a formula we use to determine the "break even point" of the discount point buy down.  Here's the formula:

Total cost of the buy down / (Payment before the buydown - payment after buydown) = Number of months before you break even on the cost.

For example...let's say you were getting a $200,000 loan at 5.0% and your payment is $1,075.  You want to know if buying down your rate to 4.75% is a good deal.  The cost to buy the rate down is 0.75 points or $1,500.  Your payment at 4.75% will be $1,045 a month. 

Using our formula, if we take $1,500 / ($1,075 - $1,045) = 50 months.  This means that it will take you exactly 50 months (4 year and 2 months) before you even break even on the buy down.

So, does the buy down make sense?  Well, if you're only going to be in the house for two or three years then NO!  But if you're planning on being a "lifer" then it would make a big difference in your total out of pocket.

Have a similar question?  Shoot me a line or give me a ring.  I'd love to speak with you!

Last week I introduced you to the new article I wrote call "The 5 Biggest Deal-Killers of Your Next Home Mortgage - Which One Will You Make?"

We talked briefly about the first and second mistake.  First, not knowing the status of your credit at all times and second, assuming that because you're an A+ borrower you won't have to jump through any lending hoops.

Today we're going to talk about the third, fourth, and fifth deal-killers.  These three issues are getting more scrutiny than ever before.

3.  Debt-to-Income (DTI) Ratio. 

This ratio measures the amount of total monthly debt against the amount of total gross income of the borrower.  Before the mortgage meltdown if a borrower had a high DTI we were able to explain it away with other strong compensating factors of the borrower's file.  Now, however, there is less wiggle room then ever before.

So, what can you do about your DTI ratio?  Eliminate any unnecessary debt.  Don't know what that means?  Remember when Dad used to talk to you about "needs" versus "wants"?  Well, that should get you started here too.

If you're current debt-to-income ratio is higher than 50% you need to figure out how to eliminate monthly installment payments.

Items used to calculate DTI are house payments, auto, boat, RV, or motorcycle payments, student loans, credit card monthly payments, department store and other revolving accounts (tire stores, Chevron cards, etc.), lines of credit, quick cash loans (i.e. Money Tree), and any other monthly installment loans or accounts.

If you don't NEED it, get rid of it.

4.  My buddy's little boy always asks me "Hey, how much money you got?" 

Now, no one expects you to have enough money in the bank to pay cash for your house…but the bank sure makes it seem like it!

Listen, don't get discouraged here…we're all in the same boat.  We'd all love to have a million bucks in the bank just lying around waiting on us, but let's face it very few people have adequate liquid assets these days.

The biggest deal we look at when talking about assets is a term banks use called 'reserves'.  Essentially they want to know if you slip on your next ice skating trip and are out of work for a few months, how long will you be able to make your house payment.  Most of the time the banks will want to see a 'reserve' (remember, that's just a fancy banker term for savings) of six month's worth of your current mortgage payment (with taxes and insurance).

So, for example, let's say that your new proposed mortgage payment is going to be $1,220 including taxes and insurance.  In most cases, you'll need to have $7,320 sitting on the sidelines somewhere.  Now, this is NOT the case with FHA, VA, and most first-time homebuyer programs.  

Bottom line…the bank wants to see that you have the ability to save a little money and use it if you need to.  They want to see liquid assets such as 401k, checking and/or savings accounts, stocks, bonds, CD's, IRA's or any kind of other account.  

In other words…No, Bubba, you're 1979 fully restored, totally radical AMC All-wheel drive Eagle (do you remember those things?) does not constitute as an asset to the bank.  Even though you're SURE it's worth a mint, they'll want to see something in the bank.

5.  SHOW ME THE MONEY, JERRY! 

The amount of money you make each month is really irrelevant to the transaction as long as you can document enough monthly income to cover your DTI.  However, when it comes to making money, the banks want to see a track record of being able to make money.  So, employment history comes into effect here.

If you're one of those people who have made a career out of changing careers then there are a couple things you'll want to know when looking to get a new mortgage.  First, nearly every single loan product out there is going to require a two-year work history WITHOUT any gap in employment.  That means if you decided to take a three-month 'fishing sabbatical' last year you're going to have a hard time convincing the bank to give you some money.

Second, Verification of Employment forms are ordered on nearly all loans now.  What's that you ask?  That's a form that's sent over to your employer to verify your wages, date of hire, last pay raise, and a couple other minor employment questions.  You wouldn't think this would be that big of a deal, but we've had several loans held up because of this one little piece of paper.  So you'll be best to let the boss know someone from the bank will be calling, faxing, or emailing over a paper.  We need it back, don't throw it away…thank you very much!

Unfortunately, these aren't the only things killing deals these days, but if I had to load my quiver full of deal-killing arrows it would have these five for sure.  Most of the problems I see on a day-to-day basis would fall in one of these five categories.  There are ways to work with or around the issues in order to get your deal done.  That is why it's so important to work with a professional.

I'm in this business to stay.  I'm not just waiting it out until I find something better.  I strive to become educated in the industry so I can provide you the best possible option currently available.  So, even though Cousin Eddie told you he'd "Hook you up" with your next mortgage…you may want to consider dealing with someone who knows how to structure the deal to make it work.  

If you have something specific you'd like to ask me about your personal deal then shoot me an email or call.  I'm happy to answer your questions and help you prepare to avoid "The 5 Biggest Deal-Killers of Your Next Home Mortgage."