Chapter 1: A Home as an Investment, Tax Deduction and Inflation Hedge
If you are going to advise prospective homeowners and Realtors®, then you must be an expert regarding the economic reasons for homeownership. Nowhere else in the world will you find these simple explanations of complex economic issues. Learn how a home can accelerate the gains within an investment portfolio through the concept of leverage. Demonstrate the specific tax advantages of homeownership. Protect your monthly income against future inflation by owning a home. Can you present each of these clearly and intelligently? When giving first time homebuyer presentations, this chapter is a must. Each concept is accompanied by examples and simple tables so that you can demonstrate clearly to your clients. Move beyond the realm of sales person. Become a leading expert in your field.
Chapter 2: Sources of Mortgages
Chapter 2 of the Book of Home Finance covers the basic mortgage sources comprehensively—FHA, VA, Rural Housing, state and local bond issues, conforming and sub-prime. This chapter covers who is eligible to obtain mortgages from each source, the types of transactions financed, mortgage types offered and the costs of each mortgage type. If you are a government lender, moving into government lending or have to compete against government loans—this chapter is a must. This is especially true with the rules regarding FHA and VA mortgages changing so often. There is a wide variety of tables contained within this section of the Book of Home Finance, many of which can be copied/printed and provided as value-added materials to your clients. Some provide a history of mortgage rates and mortgage limits. Others provide specific information regarding topics of interest to your clients such as the refund of mortgage insurance.
Chapter 3: Types of Mortgages
Chapter 3 of the Book of Home Finance is a comprehensive treatment of specific mortgage alternatives—fixed rates, adjustables, balloons, buydowns, graduated payment mortgages and more. This chapter is essential for anyone entering the mortgage industry or would like simple explanations of products to relay to their mortgage prospects or Realtors®. Tables within Chapter 3 help explain how mortgages work. There are sample amortization tables, prepayment examples and histories of adjustable rate indices. Many of these tables can be provided as examples to your clients and are essential when teaching finance to Realtors®. The substance of this chapter is a must in order to understand an even more essential chapter—Comparing Mortgages. Essentially, the Book of Home Finance is a step-by-step process to becoming an expert.
Chapter 4: Qualifying For a Mortgage: Ratios and Residuals
It is one thing to understand mortgages. It is quite another to understand what it takes to qualify someone for a mortgage. You cannot conquer the mortgage industry without this knowledge. This chapter delves into the ratio and residual (VA) methods of qualification. The simple explanations contained within include sample qualification examples. The chapter also includes an explanation of the concept of credit scores. Basic finance courses for Realtors®, first time homebuyers presentations or training for loan officers and operations personnel must explain clearly and fully how someone qualifies for a mortgage. And the chapter contains dynamite tables such as an exclusive mortgage qualification chart by income and interest rates. Instant value for your clients!
Chapter 5: Comparing Mortgages
If you are aiming to be an expert in the mortgage industry, the previous four chapters of the Book of Home Finance prepare you to help someone compare mortgage alternatives. When a potential client asks—should I take an adjustable or fixed rate—what basis do you have for an answer? Do you know the important factors, including cash considerations, risk implications, and more? Perhaps the client is asking whether they should pay points or put the least amount down on a mortgage. Anyone can sell a mortgage program. Only a true expert can help someone make the decision of a lifetime. It does not matter if you are a subprime or government originator. If you are competing on price—you are typically losing out to mortgage experts. It is the mortgage expert who gains a client for life. This is what mortgage careers are built upon.
Chapter 6: Refinancing a Mortgage
In a typical year, twenty-five percent of the new mortgages in the United States are refinances. If you are dealing in subprime or second mortgages, the figure is much higher. If we are in the middle of a refinance “boom,” as much as 75% of the mortgage market can be refinances. How can you be sure that you get your share? Expertise. That’s right, become a refinance expert. Simple tables explain important concepts such as the time needed to break even after a refinance, the effects of mortgage prepayment as an alternative and how points affect refinance savings. This chapter also covers the mortgage sources and their treatment of refinances—including the lucrative FHA streamline refinance market.
Chapter 7: Applying and Packaging Your Loan for Approval
How well a mortgage broker prepares their customer for the application process is the number one determinant as to how well the process will proceed. How well the process proceeds is the number one determinant as to the delivery of excellent customer service. Excellent customer service delivers customers for life. Want to move from sales person making numbers every month to a mortgage referral magnet? Customer service is the key. This chapter will help you understand the application process. It will also help you guide your customers through the process. The items needed for loan application are a simple list that can be printed for your Realtors® and prospects. You can’t expect your customers to be prepared unless you help them become prepared.
Chapter 8: Mortgages, Home Ownership and Taxes
The newest Chapter of the Book of Home Finance is designed to walk you through the tax implications of home purchase, ownership, rental and sale. The book is not designed to supplant advice from an accountant or other tax professional. But how can you imagine becoming a mortgage expert and not knowing the basics of tax code as it relates to the mortgage industry? If you are selling to sophisticated real estate investors, you can be sure they are well apprised of the tax implications of real estate ownership. You must be not only on par with your clients. You must be a cut-above. Mortgages, homeownership and taxes will put you head and shoulders above the competition. This is what success is all about.
The Book also includes a complete Glossary, 39 tables and 7 Graphs, worksheets and figures that are designed to make the process easy to understand. Many can also be copied and used in your daily marketing or pre-qualifying.