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Level 5 Leadership The key differentiator between good and great companies is Level 5 leadership. This is the premise of Jim Collins' best-selling book Good to Great: Why Some Companies Make the Leap ... and Others Don't. The following criteria are used to identify the sustained excellence of Level 5 leadership: companies needed to exhibit a 15-year cumulative stock return at least three times above the market average. Out of the Fortune 500, only 11 companies qualified. Level 5 leaders have some surprising characteristics in common. Instead of being high-profile, big-ego leaders, they are self-effacing and reserved. All are humble and clearly see their own limitations in what is an increasingly complex and ever-changing marketplace. Consequently, their role as leader is less about promoting their own vision and more about surrounding themselves with the best talent available, then grilling that talent with penetrating questions to devise ongoing strategies to accommodate the ever-changing marketplace. This is described as "first who ... then what." Because no single person has all the answers, the emphasis is on first "who" is onboard and then "what" to do is decided. In the book, an analogy is made to a bus. The Level 5 leaders first make sure to get the right people on the bus and the wrong people off the bus. Then, collectively, they decide where to drive the bus. Level 5 leaders also exhibit an unwavering resolve to do whatever must be done to produce the best long-term results for the company, show a relentless ability to confront brutal facts and never lose faith. And, most importantly, they avoid the pitfall of being good. It turns out the biggest impediment to being great is the complacency that comes with being good. |
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Could First Time Homebuyer Tax Credit Return?
By Michael Kraus on August 30, 2010
The last iteration of the repeat homebuyer tax credit and the first time home buyer tax credits expired on April 30, 2010. After their expiration, demand for housing utterly collapsed despite record low mortgage rates. Currently there is a huge overhang of homes on the market (over 12.5 months worth). The excess supply and lack of demand are causing house values to drop. Nobody knows where the market will settle, but many are predicting declines of 5-20 percent over the next year or two.
One would think that this clearly demonstrates that the tax credits did nothing more than accelerate sales from the summer and fall into the spring, providing a temporary lift to the housing market, which resumed its decline as soon as the tax credit was withdrawn. In short, we dumped billions in taxpayer money into the housing market for no real price stabilization.
Surprisingly, the Obama Administration has not ruled out bringing back the tax credits. According to a New York Times article, on Sunday HUD Secretary Shaun Donovan was quoted as saying:
"It's too early to say whether the tax credit will be revived". Donovan said in an interview on CNN's "State of the Union" program. He said the administration would "do everything we can" to stabilize the shaky U.S. housing market".
Another tax credit may stabilize the market temporarily by goosing demand for homes, as it did before. Our current experience suggests that the lift would be temporary, at which point housing prices would resume their decline to whatever level is naturally dictated by the market (unless other conditions, such as the labor market, were to improve in the meantime).
It seems clear to me that the tax credits were bad public policy, and likely cost taxpayers billions of dollars that caused no long term benefit. Despite this, I wouldn't be surprised to see this country's politicians enact another tax credit in order to curry favor with voters in November. If there are any further developments in this story, I will be sure to update this space.
Do you disagree with me on the tax credits? Do you think they were good policy? If so, let me know why via e-mail.
SHOULD I REFINANCE MY HOME????
If you've ever asked yourself the question, "Should I refinance my mortgage", the answer is, you should DEFINITELY look into it. Not only could it give you more to live on month to month, but it could also save you thousands off your loan in the long run.
A recent survey produced some disturbing results on the state of mortgages in the United States. The report showed that more then half of property owners are either paying too much for their mortgages or are locked into mortgages that are clearly unsuitable for their needs, income level or financial goals. "Should I refinance my mortgage" is clearly a questions more Americans should be asking themselves.
Research also indicates that the average percentage of some ones income that goes to mortgage repayments has risen 12.6% from ten years ago. That's not leaving today's property owners much to live on.
If you don't relate to these circumstances, there are plenty of other reasons why refinancing could still be in your best interest.
Let's face it, things have probably changed in your life since you originally obtained your home loan. What worked for you then might not be working for you now. Refinancing allows you to change the terms of your mortgage to suit your lifestyle now.
Here are the main reasons why you should look into refinancing.
Save thousands:
It is possible to pay thousands less on the life of your mortgage by refinancing to a better deal. Whether you are able to secure a home mortgage with a lower interest rate, fewer fees or more features to repay quicker, saving money in the long run is a real possibility.
Lower your monthly payments:
Are you struggling to pay your monthly mortgage payments? Well, aside from changing to a lower interest rate, there are a few other options. One is to refinance the remaining principal at the original length of the loan. For example, say you borrowed $200,000 on a 25 year term and you are 10 years down the track with only $125,000 left on the mortgage. If your monthly payments are too much, refinancing the $125,000 back on a 25 year term loan will greatly reduce them. If it relieves you of the stress of meeting your bill month to month it could be a very worthwhile option.
Consolidate your debts:
Are you struggling to manage your debt? Paying way too much in interest? One of the easiest ways to handle credit card and high interest debt is to refinance it into your mortgage. Simply refinance what you owe in total, including credit card debt and all other high interest loans, and only pay the low interest rate incurred by your home mortgage. Let's say you still owe $100,000 on your home mortgage and in addition owe $20,000 in other debt. You then refinance for $120,000. This way you can pay off the $20,000 that was incurring a high interest rate, at the low rate of your home mortgage. Not only will this ease your financial situation, it will save you a lot of money from interest you now no longer have to pay.
Provide spare cash:
Do you need some money? Want to renovate to add value to your property and/or improve your living arrangements? Well, refinancing is a great way to gain access to the equity sitting in your home. Consider a switch to a Home Equity or Line of Credit loan as a way to do this. This would allow you to renovate your home, buy that new car, or do anything you like with the money.
Pay off your home mortgage sooner:
Want to own your home as soon as possible? Or have you had an increase in salary and want to get your money working more effectively for you. Why not refinance to a 100% Offset or an All in One home loan? These types of loans can greatly reduce the amount of interest you pay on your mortgage. In addition to this, the option to pay more each month can greatly reduce the time it takes you to own your home.
Increases your financial security:
Worried about interest rates rising? If you're on a Adjustable Rate home loan you might want to refinance to a fixed rate loan. This will give you peace of mind and financial security, especially in volatile times knowing that your monthly payments will remain the same.
Provide Opportunity to invest:
Want to invest? Get your money working for you? By refinancing you can gain access to the equity you have built up in your home. A switch to a Home Equity or Line of Credit loan would allow you to draw on the equity you have built up. You would then have the money you need to invest.
So you can see why there are many reasons why refinancing can seriously benefit you. Next time you ask yourself the question: "Should I refinance my home mortgage?", you owe it to yourself to check it out. However the ultimate answer to the question is in the maths. If the numbers add up, and are in your favor, then it is obviously worth it. Use our refinance loan calculator to if you will benefit from refinancing your mortgage.
FHA 203k Renovation Loans...A hidden gem in the mortgage business today!!!
As you keep your options open in this ever changing industry, here is another tool we can offer you.
Prospect Mortgage is the second largest nationwide lender for FHA 203k Renovation Loans by units. These loans are perfect for a bargain hunter who has spotted a fixer-upper or a foreclosure in need of immediate repair, or a client who has found a home that would be ideal if only there were a third bedroom and a second bathroom. FHA 203k Renovation Loans are the answer
A Prospect Mortgage renovation loan provides consumers the money to both purchase a home and finance the home's renovation. The down payment on a renovation loan can be as low as 3.5%. Improvements can include anything that adds value to the home, such as a room addition, new carpeting, landscaping, plumbing, roofing or a new kitchen. The loan can also be used for energy-efficiency improvements that qualify for tax credits under the new stimulus package.
FHA 203k Renovation Loans are no different in terms of qualifying than your normal FHA Financing. We will lend on the "After Improved Value" based on the appraisal. We can streamline the process and offer up to $35,000 towards improvements (as described above) and the work does not have to be done before closing.
The REO market has increased demands for 203k Renovation Loans because so many REO properties require repair. Prospect Mortgage has partnered with some of the nation's largest REO asset holders, with preferred lender status on more than 120,000 quality REO properties! In addition, we help our Real Estate Agent partners turn their REO open houses into a beehive of buyers with our proprietary marketing system. Check out the attached sampling of materials showing how we help market our Loan Officers!
Call me today to learn how Prospect Mortgage can make YOU a Renovation Lending sales leader!
HomePath Financing
HomePath® Mortgage Financing
The benefits include:
FREQUENTLY ASKED QUESTIONS:
Why does Fannie Mae have properties for sale?
Fannie Mae works with all of its partners to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community.
What kinds of properties are available in the Fannie Mae HomePath database?
Fannie Mae's HomePath database includes only properties that are owned by Fannie Mae. There is a wide selection of homes, including single-family homes, condominiums, and town houses-located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.
How is buying a home owned or managed by Fannie Mae different from other home purchases?
Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.
When buying a Fannie Mae-owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.
Has Fannie Mae fixed everything in the house?
Fannie Mae may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. Fannie Mae sells each property "as is," which means that the buyer accepts the property "as is." Fannie Mae is not responsible for fixing any problems after settlement.
Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn't mean everything in the house is new, or even works.
Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense.
You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.
What can you tell me about this house?
If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.
What type of sales contract does Fannie Mae use?
Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you.
Do I have to use Fannie Mae's selected title, settlement, or escrow companies?
No. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract.
Will Fannie Mae accept an offer contingent on the sale of my house?
No, Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.
Why does Fannie Mae request a lender's prequalification statement before negotiating a home purchase offer?
Fannie Mae does not require a prequalification statement or letter before negotiating an offer. However, by obtaining this statement or letter, you better position yourself to get financing and complete the sales transaction in a timely manner. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.
A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.
You may obtain a loan prequalification or a loan pre-approval at the lender of your choice. To take advantage of our special financing, we encourage you to work with a HomePath-approved lender. To find a HomePath-approved lender in your area, please click here.
Does Fannie Mae provide special financing?
Special financing is available on many properties through HomePath® Mortgage and HomePath® Renovation Mortgage. Click here for more information.
Can I buy a house directly from Fannie Mae without going through a real estate sales professional?
No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.
What happens if Fannie Mae gets more than one offer?
All interested parties may be asked to submit their best offer in writing though the listing agent no later than a specified date and time. Fannie Mae may accept or provide a counteroffer that we determine to be in our best interest. Fannie Mae is not obligated to accept any offer submitted.
FOR MORE INFORMATION OR TO APPLY FOR A HOMEPATH LOAN TODAY CALL:
ERIK KINSLEY / Sales Manager
CELL - (951) 970-5034
PROSPECT MORTGAGE
RJF Financial - A mortgage lender. With over 15 years of experience, Erik Kinsley has generated a high volume client base built on trust and quality long term relationships.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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