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Refinance Mortgage: The Cost Of Doing Business

By: Rony Walker

There is always a possibility of getting a no-cost refinance. Mortgage rates being what they are, this is, of course, a very welcome option. But lenders are in business to make money. Keep this in mind when you are trying to get a refinance. Mortgage problems make your entire fiscal situation even worse if not properly managed.

If your creditor is not earning income by charging direct costs for the loan, those fees will be integrated into the loan or you will be paying through an interest rate that is higher than normal. It is true that some banks offer true no-cost loans but not a lot of them do. Make sure you read your agreement thoroughly. You can get a Good Faith Estimate. When you do, ask the lender to guarantee it. Legally, Good Faith Estimates do not have to be guaranteed. This makes them almost worthless. However, lenders will guarantee these estimates if they do business with you.

It is a complex thing to seek refinance. Mortgage transactions have many costs attached. These include, loan discount points, processing costs, administration costs, application costs, and many others. Lender charges can be negotiated by the borrower. Some of them can even be waived. A Yield Spread Premium is the money that banks give to mortgage brokers for bringing your loan. Ask about this beforehand as you might have received a lower interest rate if the lender did not pay the broker a Yield Spread Premium.

What Is The Downside?

The bad things about a refinance? Mortgage refinance fees you pay to acquire the loan for one thing. You might not recoup these fees for a number of years. Another is the extension of the amortization period. You may be qualified to shorten it but you simply may not want to pay more each month. Also, a mortgage refinance makes the entire mortgage just that much bigger. The position of your equity will be affected by the refinance. Mortgage will increase if you take out the refinance in cash

Bill payment is something people do with a refinance. Mortgage payment is not the priority for them. They also use the cash to pay off credit cards. This is not a wise course of action. You will only dig yourself deeper into debt.

And The Upside?

Sticking with the home long enough will help you break even on the cost of the mortgage refinance. Lower interest rates and monthly payments will greatly improve your cash flow. You can also shorten your loan period in exchange for higher mortgage payments. Finally, the cash you obtain can help you in another investment. You just have to make sure the rate of return is higher than your interest payments.

Clearly, there is a lot to learn about mortgage refinance. A lot of it depends on your particular situation. As with most things, seeking professional advice will yield better results. Make sure that the counselor understands your situation and what you intend to do with the refinance.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_8938.shtml

End Of Year Business Growth Strategies

By: Andre Bell

Summary: Smart business owners know the end of year is the time to pull out all stops. To give their all to finishing at the top and leave mediocre performers trailing in their dust. Here’s how to end the year on a profitable high.

While watching marathon runners it’s easy to see there are two distinct types of runners. The first gets excited when reaching the finish line. This is the time for putting everything they’ve got into reaching that goal.

The second type of runner sees the goal and says to himself, ‘Now I can slow down. Now is the time to stop pushing myself so hard. I’m almost there.’

The problem with this second attitude is slowing down causes the runner to get passed by more assertive runners. It also limits the runner’s chance of reaching the best he can truly achieve. He has limited himself to a mediocre performance. Or worse, he will give out altogether.

These same attitudes also exist in businesses at the end of the year.

There’s one group of business owners and decision makers who know this is the time to pull out all the stops. To give it their all to finish at the top of their game and leave mediocre performers eating their dust.

Unlike a real race though, it takes very little effort to finish on a high. That’s because most competitors choose to simply sit back and watch the year wind down to an end instead of push themselves to achieve more.

So what is needed to finish first, to truly put your best effort forward and end the year at the top of your game?

First you need to make a commitment to stay in the game. Not to give up and not to make up excuses that it’s almost over. And second you need to realize that in business, you get to make your own rules. You can choose your own course. No one can force you to stay in the same under-performing pack as everyone else. You can legally choose your own shortcuts for reaching the finish line ahead of everyone else.

There are several ’shortcuts’ for finishing the year on a high note.

First is to look at your current client list and ask yourself, are you fully utilizing the relationships you’ve formed with your clients? Are you getting maximum use from your client database? When was the last time you made a special offer to your clients of something they actually wanted?

And like a runner handing off a baton in a relay race, when was the last time you passed on the tools needed for your clients to send you more referrals, given them incentives to buy more frequently and in higher volumes? When did you last reward your top performing clients?

If you are not doing these things you are not putting yourself ahead of the pack, you are running along with them with the same mediocre performance.

Also, not only do you need to focus on staying in the game and winning, you must take steps to insure your clients ’stay in the race’ with you. And if some have fallen out, you need to take steps to get them back up and running.

This involves including a customer reactivation and client attrition program into your end of year marketing. What type of customer appreciation programs are you using to help your clients maintain their energy and enthusiasm for you? Don’t have one? That should be your immediate focus right now. Today.

Second to reactivating clients and preventing attrition is making special offers encouraging existing clients to continuing going strong. To pick up the pace and spend more. Not just because you want them to spend more, but because it’s in their best interest.

What type of pace do you think a person would put into running a mile if they were told the reward is a dollar bill versus if a hungry lion were coming after them? What if at the end of the mile is a safe, lion-proof shelter? What level of performance do you think they’d put into this mile? Obviously a huge difference.

But the thing is, the distance has nothing to do with the amount of effort exerted. The distance is the same. But the incentives differ.

It’s the same with your end of year offers and incentives. You must make your offers irresistible. Not because it’s what you want to give, but because it’s something your clients want to get.

These are just some of dozens of ways to end the year on a high note.

Really, if you set a goal to increase sales instead of focusing on just finishing the year you can come out ahead. It simply requires making the decision to put your best foot forward and increase your activity during these final legs of the year.

By doing so you’ll stand out well in advance of the pack that simply wants to reach the end of the year. You can come off victorious.

Note to Publishers: You may publish this article in your newsletter, on your website, or other online or offline publication as long as the article content is not altered without prior permission. Online the resource box must include an active link. Notification of use of this article is appreciated, but not required. The author can be reached at http://www.andrebell.com/askandre

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_8862.shtml