What to eliminate from 31 ideas and what to add

There’s an older article that refers to 31 ideas. I see no reason to replicate it.  Check it out.  There are some great suggestions.

 
Here’s what I would not do (or at least be wary of):

• Make an extra mortgage payment.  This is only worthwhile if you’ve sat down with your financial planner and decided this is actually in your best interests.  It likely isn’t.

• Increase your student loan payment.  Again, only worthwhile if you’ve considered the interest rate, whether you can deduct the interest, and whether it makes sense in your overall financial plan.  Remember, paying off debts is not the same as accumulating assets.

• Seeking a lower interest credit card.  Initiating new credit can bring down your credit score, so if you’re planning to buy a house, this could be a bad idea.  Otherwise, it’s a great idea.

• Be careful about shopping for new home and auto policies.  Make sure that you’re not losing “seniority” at your insurer that you would be giving up should you change companies.

 
Here’s what I applaud and highly recommend:

• Set an automated payment toward your debt.  In this, I’m thinking about the minimum monthly payments.  Make sure those are paid automatically.  Now, you might always pay more or pay them off, but I can’t tell you how many clients thought they were paying ABC Bank for their mortgage but sent the payment to the credit card division and didn’t catch the mistake until they were 30 days late.  Yikes.

• Check your credit report.

• Reread your estate planning documents. Make sure you still agree with them.

• Walk a loved one through your affairs. 

 
Here’s what I would add:

• Call your mortgage broker and see if you can do better on your residential loans.

• See the comment near “Investments and Retirement” about checking out your medical report file from the nationwide consumer reporting agencies.  Like checking your credit report, you may discover mistakes that are causing you money.

• Consider buying long-term care insurance.

 
If we can help you with any of these items or with a referral, please call.

Mortgage Brokers Are an Asset to Lenders

What you need to understand is that mortgage brokering was the first outsourcing of mortgage services 30 years ago.  Lenders thought that if they could get a cheap sales force to send them loans that would be more profitable.  Think about it:  If a lender doesn’t have to pay to keep floor space, lights, a computer, toilet paper, coffee and benefits for a mortgage salesperson, it can make more on each loan.  So it outsourced everything but underwriting and document drawing to someone who would find the consumer, teach the consumer, hand-hold the consumer, and close the consumer and never pay that person unless the loan arrived at the bank.  It’s coming back into fashion.  Why?

     * Cheap sales force, easy to roll out new products.

     * Brokers build stronger relationships.

     * Brokers are more dependable, educated, and knowledgeable.

My favorite part of the article?  An author singing to the choir. This is what I have been saying for a year now:  “Plus, the brokering industry is curing itself naturally of its worst faults. During the real estate boom, all kinds of people flocked into the mortgage business, many of whom received little training and had no real industry knowledge. Those folks are gone, leaving the grizzled veterans who understand the business model and will do the right thing for the customer because they understand the value of long-term relationships.”

Have you called your friendly neighborhood mortgage broker lately?