Saving for a 20% Down Payment? A Wise Pursuit?

     

Saving for a 20% Down Payment?  

A Wise Pursuit?

     
By nature ... and because I'm a Mortgage Originator ... I'm typically a huge proponent of saving money.

I firmly believe that budgeting resources and saving money should be a major focus and goal.

But as the old saying goes, "there is an exception to every rule" ...  

The "exception" in this case, revolves around the myth supporting the absolute need for a 20% down payment when buying a home.  

Take Note: I said myth.  

Despite the number of times I (and others) have denounced this myth, it prevails.  But the myth is not true or valid.  

Home Buyers can buy with far less than a 20% down payment.  Options for 3%, 3.5%, 5% ... and even NO down payment exist.  

That said, the wisdom (or lack thereof) of buying utilizing a smaller down payment can only be found through a thorough analysis and assessment of the individual borrower's finances, the market in which they hope to buy, their needs, and desires themselves.  Myths and blanket statements prior to a full assessment being made don't serve any borrower well.    

Why do I say that?

Currently, many housing markets across the country are experiencing steadily rising home prices.  And those prices are rising at a speed that outpaces most buyer's ability to save for a down payment.  

Add to that, mortgage interest rates have recently experienced some movement higher and have remained somewhat volatile.  Especially for those home buyers with restrictive finances or small savings, even small increases in interest rates can prove problematic.  These 2 factors combined can definitely inhibit someone's ability to save for a down payment.

This dilemma regarding down payment was once again brought home to me this last weekend.  A young couple I was speaking with expressed that they were reluctant to buy until they had a full 20% down payment saved.  

But upon our examination and comparison of all the factors mentioned above (rising home prices, their capability to save, current interest rate volatility) they came to a much different conclusion.  Buying NOW with a smaller down payment made better financial sense for them.  Even with Private Mortgage Insurance figured into a mortgage payment.

The beauty of the modern mortgage is this ...  

There are typically choices, even for challenged borrowers, and options available for their consideration (even if the options can only be exercised at some point in the future).  

Further:  The options and choices they make will better "customize" their financing to their individual needs and circumstances.  Definitely an improvement from mortgages of the past.

If you're hoping to buy/finance a home, I strongly suggest you do the following:

• Start your search for info and advice before you hope to buy.  Even 1 year prior is not too early
• Check your Credit Report and Credit Scores (Request your free report at www.annualcreditreport.com)
• Seek referrals to find an experienced and knowledgeable Mortgage Originator. (Not sure who to ask, what to ask or look for? Click HERE)
• Seek a Mortgage Originator's advice and guidance
• Ask them questions ... Get answers
• Seek their analysis of your credit and finances
• Seek your Mortgage Originator's analysis and comparisons of your financing options
• Proceed forward based on that advice

Only through the above route can you determine your ability to buy a home and the best and most expedient means for doing so.

If one of your goals is the purchase of a home, seek and find the best route and most economical way of successfully completing that goal.  And keep in mind that no matter what you've heard, saving a 20% down payment may ... or may not ... help you accomplish that goal.

Find out which down payment option is the best personal option for you.  In Chicagoland - IL - WI, let's talk today ...

* Hoping to buy or refinance a home in New Lenox or elsewhere in the Chicagoland - IL - WI region? Contact me today. I'll put my 40+ years of mortgage experience hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Lender - NMLS #216987 - IL Lic. #0006220 - WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking Conventional, 

FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago 

and the greater Chicagoland region, including: 

The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 

Your Referrals are Welcomed & Greatly Appreciated!

2017 - Haunted Round Barn Farm Festival in Manhattan

2017 - Haunted Round Barn

Farm Festival in Manhattan

Do you like hayrack rides?  Hay mazes?


Big bonfires at night?

Spooky things that can scare you out of your mind?

Then head to "Haunted Round Barn Farm Festival" in Manhattan, IL on October 20, 21 & 27, 28, 2017.  

Hours for this year's Festival are:  6 pm to 10 pm

Other features of this spooky Festival include:

• Bounce Houses
• Kids Haunted Area
• Fall Treats
• Music
• Obstacle Course
• Trunk-or-Treat
• Haunted Forest
• Children's Spook Room
• Rat Rods Car Show (October 20th)
• More

An admission of $5 per person will be charged to attend the Festival.  

At Halloween, all roads lead to the Manhattan Park District's "Haunted Round Barn Farm Festival".  A map/directions can be found HERE.

Go prepared to enjoy!

Halloween is scary.  Financing your home should not be.  

If you're hoping to Buy or Refinance a home in Manhattan or elsewhere in the Chicagoland - IL - WI area? Contact Me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf and remove your fears.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell or Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

         

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago a

nd the greater Chicagoland region, including: 

The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.

Referrals are Greatly Appreciated & Welcomed!

2017 - Halloween Safety Tips for Trick-or-Treaters and Family Pets

2017 - Halloween Safety Tips for 

Trick-or-Treaters and Family Pets

Halloween is supposed to be lots of fun ... 

And scarrrrrryyyyyy!  

Outlandish costumes.  Free candy.  Parties.  Trick-or-Treating with friends.  It's the perfect holiday for kids ... right?     

But danger and dangerous situations can lurk on  Halloween too.  Extra preparations, planning, and precautions are needed in order to ensure that Halloween is memorable for all the right reasons. 

For both kids and adults alike ... the selection of Halloween costume is important.  Whether purchased or homemade, a costume needs to be safe, comfortable, and hazard-proof.   

While making your costume selection, consider these tips: 

• Make sure that ALL costumes are made of flame retardant materials  
• Choose light-colored costumes, if possible       
• When wearing a mask, do not limit or compromise your eyesight in any way
• Wear sturdy comfortable shoes ... forego the high heels
• Pre-Test any Halloween makeup you will be wearing in advance for possible reactions.  Wear/apply only non-toxic makeup 
• Place reflectors, flashing or glowing lights, reflector ropes, etc., on a costume that will be worn at dark.  Or have your child carry a light stick or flashlight (remember to check the batteries) to heighten visibility
• Make sure that a costume fits properly, as to avoid tripping or pieces of clothing (or Props) getting in the way or snagged on objects
• Place your telephone number somewhere on your child, just in case you get separated from them  
• Do NOT let children carry hard plastic items, such as swords, scythes, or other safety hazards.  Items such as these should be flexible to prevent harm if fallen on

     Before or During Trick or Treating ... 

• Have children eat a meal/healthy snack prior to heading out to Trick-or-Treat.  They are less tempted to indulge themselves with candy if you do.
• Do not eat homemade treats received from households
• If your child has allergies, think about utilizing gloves in their costume.  This is an added protection for them during a vulnerable time.
• Children should be accompanied by an adult.  The larger the group of children, the more adults needed
• Make sure children have "buddies" or Trick-or-Treat in tandem with another
• Plan a safe route and stick to it.  If older children are allowed to go in a group, make sure someone within the group has a cell phone
• Restrict routes to main, well-lit areas.  Tell children NO Alleys
• Stick to Trick-or-Treat hours established for your area ... or curfews
• Instruct your children to not eat any candy until you have inspected it
• Instruct children to NEVER enter the home they are visiting ... or a car of a stranger without your permission
• Have "that talk" with your child about destroying property and vandalism and respect for others 
• Remember to check both ways when crossing a street.  Hold the hands of little ones within the group, to make sure they do not dart into traffic

     And for Teen Trick-or-Treaters and Adults: 

• If driving to a party, please drive safely.  Remain extra vigilant and aware 
• Take a cell phone with you
• If driving, make sure you have plenty of gas to get to your destination and back.  Halloween is not the night to run out of gas
• Follow curfews.  Law enforcement is strict  surrounding Halloween
• Should plans change, let your parent(s) or another adult know
• Vandalism is wrong, no matter the season or holiday. Don't get caught-up in the moment and come to regret it
• Download the Red Cross Emergency First Aid App.  One is available for humans ... and pets too 
• Carry your child's emergency medications with you, just in case      

    

And don't forget to protect the safety of your furry family members:

• If out Trick-or-Treating, do NOT provoke animals, whether in a doorway or in a yard
• Do not ever feed a pet any candy.  Candy, especially  chocolate, can be lethal to an animal.  Think about stashing the treats
• Sugar-free (artificial sweetener xylitol) can also cause serious health issues for pets.   
• Halloween can be a day of stress for family pets.  Place them out of danger.  Restrict them to an area where they can find quiet and less-stressful activities
• If you are the owner (or caretaker) of a black cat, bring them inside.  People can be mean, especially on this particular holiday   
• Should you dress-up your pet, do not restrict their movements or eyesight, impede their breathing, or have anything dangling off them or their costume   
• If your pet will be wearing a costume, try it out before Halloween day.  Let them get accustomed to the costume
• Never leave your pet unsupervised while they're wearing their Halloween costume 
• Do not allow your pet near pumpkins, especially if they contain an open flame
• Be mindful of electricity sources or electrical cords.  No chewing!
• If your pet is accompanying you while Trick-or-Treating, make sure they have updated tags and ID's on their collar ... or consider having them micro-chipped
• Pick-up and dispose of all empty candy wrappers and Trick-or-Treat bags.  Place glow sticks, etc. up and out of reach. They can be hazardous if ingested
• Be aware of mischievous activities and people during Halloween season

     

     Follow the above and your Halloween celebrations will be memorable for safe, fun, and tasty reasons!              

     And Keep in Mind ...


     *  Mortgage Financing doesn't need to be scary.  Contact me today!  Together we'll fully prepare you for your successful mortgage Closing.  A real TREAT in today's financing world ...
     I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. 031.0006220  -  WI Lic. #216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

 gmundt@goapmc.com

  www.genemundt.com

  eFax:  815.524.2281  

              

  

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in 

Chicago and the greater Chicagoland region, including: 

The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.

Referrals are Greatly Appreciated and Welcomed!

Creating a Positive Public Perception ... And Protecting It

Creating a Positive Public Perception ...

And Protecting It

Every business, no matter its size or service offered, is reliant on positive public perception. As someone working within the mortgage/real estate industry, I'm particularly aware of this being true.

Data proves ... vast amounts of time, effort, money, and attention are given by businesses to honing a positive business brand.  To that purpose, businesses strive to provide quality products, services, and customer service, as each is integral in creating a positive public image.  

Hone (and earn) that positive public image and your company will probably find success.  Or at least you have a better shot at it.

During this last week, the topic of public image ... public perception, and its importance ... came to the forefront of my attention.  

My wife and I had the opportunity to celebrate our recent 40th Wedding Anniversary by taking a long-awaited vacation.  We'd wanted to do something special, something different to mark the occasion, so we'd booked a train trip on Amtrak. 

Never having traveled via train before, we were a bit anxious.  But all fears were calmed as we were met by our porter prior to boarding the train.  Throughout our journey, our porters were attentive, helpful, and cheerful. 

The dining car attendant provided us entertainment.  He delivered his messages and meals with a comedic flair.  The other train employees were stellar as well.  They had a ceaseless supply of energy and were always willing to assist us.

Other passengers shared that they had much the same impression.  Their perception of Amtrak and the trip was very good.

That was until ...

Towards the end of the trip, the train experienced mechanical troubles with the second locomotive.  It was determined that an exchange of engines was needed.  That exchange set off a number of issues. 

Power went out on the entire train for a period of time. There were, of course, delayed arrival times as a result of the problems.  Appointments, reservations for car rentals, hotels, meetings, timed pick-ups by businesses, families, friends ... all were affected.   

Still, it was not the actual breakdown of engine equipment ... or the resulting issues arising from it ... that ended up upsetting us and the other passengers.  It was the silence emitting from Amtrak itself.  

There was no real apology given for the problems and delays.  No true recognition that they had created issues for their passengers.  No solutions offered that might assist them.  

The lack of empathy was the real issue that rankled.  Not one train employee acknowledged the issues in any way.  The perception became, Amtrak didn't care.  And that changed everything.

If only Amtrak had shown some concern.  Had said the right thing.  Provided some suggestions to its passengers.  Had some helpful information available.  Offered some sort of assistance.  Something.  But they did not. 

All the goodwill ... all the positive image created ... all the positive perception that had been so carefully crafted and built over the previous day and night by their employees was erased by the actions (or non-actions) of Amtrak at the end.  Poof!  Gone. 

It would be naive to think that problems aren't going to arise at times, even in the most carefully thought out and planned ventures or services.  As a business, it's important to plan and prepare for those instances.  

Above all, businesses and business people need to show that they care about the well-being of their customers.  That they're the main concern.  

They need to try to assist them through the difficulties.  Make an attempt to correct the issue or offer some solutions.  Hold their hand.  Even if the problems that arise are not directly their fault.  It's the right thing to do, but it also makes good business sense.

At least for the passengers on this specific train trip?  Amtrak's public image is currently not a positive one.  Many we talked to stated that they would not be using them for future travel or recommending them to others.  That's truly sad because the other aspects of Amtrak's service (and the trip itself) were good.

As a Mortgage Originator and businessperson, this experience really struck home.  It reinforced my beliefs concerning how I should treat my own customers and conduct my business.  And it also reminded me how quickly damage can be done to your reputation and the perception the public has of you and your services.  

There simply can be no inconsistency, no wavering in my efforts to provide good service or the building and maintenance of my business reputation and public perception.  From beginning to end, the "journey" with me and my services must be a good one. 

Anything short of that just won't do ...

* Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell or Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

  

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.

Referrals are Greatly Appreciated and Welcomed!