Gene's Bit of Blogging

Financial Planning

Don't "Cut Your Nose Off and Spite Your Face" when it comes to your Mortgage Financing

Gene Mundt, Mortgage Lender - Chicago Bancorp: Posted on Wednesday, February 08, 2012 3:16 PM

Don't "Cut Your Nose Off and Spite Your Face"

when it comes to your Mortgage Financing

There's an old saying ...

Contact Gene Mundt, Mortgage Lender - Chicago Bancorp

"You're cutting your nose off and spiting your face" ...

Stretching the point just a bit, I want to use this saying to get a message across regarding interest rates ... and the intense focus that most home buyers, and those refinancing, place on them.

Now I know that sounds a bit ironic coming from me, a mortgage lender. But as much as I think the interest rates we are seeing right now are a huge HUGE advantage to those seeking mortgage financing ... I also think that the extreme attention and importance placed on rates by consumers can be rather myopic and ultimately end-up being detrimental to their long-term financial health.

Using a play on another old adage, I believe ... "man/woman cannot (and should not) live on interest rates alone". And too many times I see mortgage clients doing just that. They make decisions based SOLELY on interest rates.

Typically a lower interest rate, and the subsequent lower payment attached to it, puts a "fire out". Meets a need in their mind. They see a tangible difference in the numbers they're going to shell-out each month ... and that's obviously important. I understand that ...

No one ... NO one really WANTS a mortgage. No one WANTS to pay money out of their pocket each and every month. But the need is there, right? And call it the financial planner in me, but a home buyer or homeowner is typically talking the biggest financial "stake" and financial need they have in their lives when speaking to me about their mortgage financing.

So I ask you ... Why not get the "biggest bang for your buck" that you can from it? Utilize it? Maximize the benefits you receive?

A wise decision on your mortgage rate and mortgage program CAN do that for you. And simply put, the lowest interest rate ... and the mortgage program/term attached to it ... may NOT be the best overall financial decision for you.

But you have to be working with a mortgage lender that has the expertise, experience, and knowledge ... and will take the time ... to explain ALL options available to you. Options that may serve a better financial purpose for you in the short and long-term. Options that may leave you much healthier financially for the future.

Many times the difference in interest rates between mortgage programs can be small ... but still carry a HUGE and reverberating impact on your finances. The importance of working with a mortgage lender that can and will "paint the picture" for you regarding the short and long-term benefits of each of your mortgage options cannot be overstated.

I believe making your mortgage selection based solely on interest rates can be like ... "cutting your nose off and spiting your face".

So I suggest ... don't make the decision hurredly. Take the time to and do the homework necessary to find the mortgage lender that can provide you all the information, products, and services you need. Then listen intently to what they say. Take notes. Ask questions. Get ALL the facts regarding ALL the mortgage options and interest rates currently available to you. Have the mortgage lender you're speaking with "paint you the picture" in hard numbers. Consider carefully the comparisons provided you.

Then and only then, make your final financing decision. That way when you move ahead with your financing you will know for a fact that you chose the right mortgage lender. On your Closing Day, you will know for a fact that you have the best mortgage financing for YOU personally ... in the short-term AND long-term.

You'll feel .. and be ... much happier and healthier financially for it.

* Work with a Mortgage Lender with 35 years of experience, expertise, and knowledge in mortgage lending, appraising background, and financial planning. Contact me today. Together we will discover the mortgage financing that best suit your needs, in the short-term and long-term both.

I can be contacted through any of the following:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com

Website: www.genemundt.com

Skype: 630.219.1316

Click Here 4 a: NO Cost NO Obligation Mortgage Consultation

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So You Think SIZE Matters??

Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Wednesday, December 28, 2011 10:41 AM

So You Think SIZE Matters??

Okay ... Okay ... get your mind outta the gutter!

I'm talking about the SIZE of your mortgage!

Yesterday, I had to explain this important detail to yet another person involved within a mortgage transaction I am working on. This time, a seller.

Mistakenly, they thought because the amount of dollars being borrowed was a smaller amount, it meant mortgage processing would be simpler, faster. That not as many "hoops" would have to be jumped through.

Bzzzzzzzzzz! Wrong! SIZE ... in this case, does NOT matter.

Whether borrowing for a small amount mortgage or jumbo mortgage amount, the over-riding majority of the mortgage process will remain much the same. Perhaps a few details will change, but overall the same verifications, the same credit requirements, the same credit check, the same legal work, the same title work, the same procedures within mortgage process, the underwriting requirements needs ... ALL will be pretty-much remain the same, no matter the SIZE of the loan.

Nope. I'm sorry to say ... the same t's will have to be crossed. The same i's dotted. Mind boggling and a bit frustrating, I know ... but true. None of these procedures or processing actions are tied into the SIZE of your loan!

So get past all those old prejudices and rumors! Prepare yourself. Educate yourself regarding the realities of mortgage processing.

And how do you accomplish that?

Do your wise and thorough preliminary homework. Find and work with a professional mortgage lender that will assist and guide you from your initial fact-finding and mortgage/home buying inquiries and questions ... through to successful transaction closing, homeownership, and beyond. It's crucial to take the time to perform and accomplish this. It can save you big money and lots of aggrevation.

THOSE are the measurements that should be important to you ...

* My mortgage lending measurements are: 35 years of mortgage industry experience and expertise. Over 20+ years of IL Licensed Real Estate Appraising to guide you and your agent through to a successful mortgage closing. Over 10 years of IL Certified Financial Planning with which to assist you during mortgage processing AND AFTER your mortgage transaction is closed.

Contact me now through any of the following means if hoping to buy in Chicagoland, Will, DuPage, or Kane County, Illinois, or across our nation. I'll be happy to hear from you ... and work with you to fulfill your dreams.

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com

Website: www.genemundt.com

Click Here 4 a: NO Cost NO Obligation Mortgage Consultation

Skype: 630.219.1316

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"Tooting Your Own Horn Through Your Marketing". Is it the beautiful music of confidence or noise of conceit?

Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Tuesday, October 25, 2011 7:16 PM

It was with some irony that I read Scott Hayes', Austin Real Estate Agency, recent blog entitled, "Are You a Bargain"? My wife and I had just had a discussion a couple of days ago regarding a theme very similar to Scott's post.

Now as a background for those that might be new to my blog, my wife Marilyn is my marketing assistant. Well okay, in actuality, she's my promoter. (A rather unusual set-up maybe, but one that seems to work very well for us.) In my dear wife's eyes, I'm a shining star of the lending profession. Simply put, the woman believes in me and my abilities. A husband could have worse problems in life than his wife liking him that much, you know??

But sometimes there's a bit of a rub between my wife's and my outlook on how to market me. Marilyn wants me to "toot my own horn" more. I say there's a fine line between looking confident and providing information and conceit. I come from a family where that was just looked-upon as a very poor habit. Others could speak of your talents and accomplishments, but you just didn't.

These days, it seems you have to market yourself in a multitude of ways, 24/7, creatively, both visually and in word, and sometimes in 140 characters or less. I do understand that. That seems like alot of tooting to me.

The crux of Marilyn's and my recent conversation centered around my "unique" blend of talents and education. She pointed out that I should be making my more of my ... for lack of better words ... specific "unique-ness". That it was makes me unique and capable of a bit more than your average bear.

Hmmmm ... my uniqueness. Starting with my Savings and Loan days, I often pondered just why my life had taken the unique path that it did. Why were certain people placed in my life later? Why were opportunities presented to me? I think I now know why. And Marilyn agrees ...

It was in preparation for the present unique market and industry challenges.

My background IS very helpful in addressing and correcting problems that arise when working with home buyers/those refinancing, especially during the present challenging times.
It IS particularly helpful now that appraisals play such a huge part in the home buying/lending equation.
My background and education IS playing an ever-increasing and active role for my clients when they are trying to make sound financial decisions concerning their home mortgage.
It IS providing a more long-term, broad view from which they can consider their decisions.

Our discussion. Scott's blog. It got me thinking. When kids are little, we try to instill within them a solid core belief in themselves and their abilities. A belief that they are special and unique to this world. I know we're certainly trying to instill that in our little grand-daughter right now.

So if it's good for our children, why not for us adults too? Forging forward with that thought, I wrote down what I believe are my "unique" talents and education credentials. Lo and behold, they weren't that different from my wife's! Oh man, I'll never hear the end of it ...

But here's what I believe I bring to the table that contributes so uniquely and greatly to the successes of my clients and my referral partners:

* 35+ years of mortgage lending/industry experience

* 20+ years of licensed Appraising experience & education

* 10+ years of certified IL Financial Planner education & experience

So when Scott Hayes asked in his recent blog, "Are You a Bargain?", I was ready to answer confidently ... yes, I do. I was comfortable with doing that much tooting ...

* If you're wanting to work with a lender that offers 35 years of unique experience and expertise while buying or refinancing a home, please contact me. I can be reached at any of the following:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Skype: 630.219.1316 Email: gene@chicagobancorp.com

Website: www.genemundt.com

Click here 4 a: NO Cost NO Obligation Mortgage Consultation

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Have a Daughter? Educate Her About Finance, Credit, and Buying a Home.

Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Thursday, October 20, 2011 4:58 PM

Maybe the following has become a more personal worry to me this last year because I became the grandfather to a beautiful baby girl last October. That certainly has brought the urgency of the following topic "home" to me.

In the not too distance past, having conversations with a daughter concerning finances, credit, and buying a home just never would have happened. Thankfully, those times are now behind us.

As I've mentioned before in previous posts, talking finances and credit with any child is important. And those conversations and financial education should occur early-on. The better grasp our children have of these topics, the better for their future. (Click 4 Previous Post on How Sesame Street is Helping Accomplish This!)

But for daughters and women in general, the need to talk and learn about this topic takes on special significance and urgency. Two facts drive this need:

First, according to a 2006 study by Harvard University's Joint Center for Housing Studies, the following is currently true:

The average age when a woman first marries increased as more women sought education and career before committing to a relationship. (And I add: IF they ever married/committed)

Secondly, the next statistic is now true ...

Among Americans 65 years of age and older, 42% of women, but just 14% of men, are widowed. (The cold hard fact is women live longer and generally marry/commit to older men, increasing the probability of them outliving their partner.)

These two facts speak volumes about the great need to educate females regarding a host of today's financially-based topics, such as credit, careers, savings, financial planning, buying homes, debt management, and more.

That said, it is also true that right now the percentage of single female home buyers is much higher than that of single males. 2010 statistics from the National Association of Realtors (NAR) place single female home buyers at 20%, to just 12% single male buyers. The number of single female buyers is growing quickly too. The percentage of single females buying a home on their own today has doubled, in comparison to the 1990's.

Using these statistics and facts, and then pairing them with the unique and beneficial set of circumstances that surround home buying in the current market (historically low interest rates and falling/lower home prices making it very appealing and more likely that single females will buy) ... you can see how great the need and urgency to have "that talk" and for educating our country's young females in regards to all financial topics actually is.

The stated statistics and facts also unfortunately indicate that females are likely to be making some pretty important financial decisions on their own at some point in their future.

So parents ... educators ... real estate professionals ... financial planners ... loved ones ... we need to step-up and address their needs NOW. Make the information available in a variety of ways, at varying ages. We also must make sure that when asked questions, we answer them honestly and thoroughly with an eye to female needs.

We must see that females get the proper tools and education they need regarding financial issues so that they can make sound decisions when called upon ... or when choosing to do so. This will better equip them during their future, protect them financially, and also help them benefit more fully from their financial decisions as well.

Contact me if I can be of assistance in any way ...

* I can be contacted at any of the following:

Direct: 815.277.4036 Cell/Text: 708.921.6331

Email: gene@chicagobancorp.com

Website: www.genemundt.com

Skype: 630.219.1316

Click here 4 a: NO Cost NO Obligation Mortgage Consultation

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Teaching Kids Good Money Habits. Sesame Street Can Help ...

Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Thursday, July 21, 2011 3:25 PM

Given the recent addition to our family, these days my wife and I are watching Sesame Street once again. Always big fans when our 2 boys were little, we find ourselves renewing our affection for this program and its characters, both old and new.

At only 9 months, our little grand-daughter Marilyn, is fascinated by this wonderful show. It's amazing to see her little face light-up when her favorite characters arrive onscreen. Watch her start to dance when the music starts-up. You can see her little brain just "clicking" as she takes it all in. I know her dad and her uncle were the same way when they watched years ago.

So when I saw that Sesame Street is tackling the topic of financial literacy through its' "Talking Cents" project, I was almost giddy. I'm not sure the saying "Get 'em young, and train 'em right!" was referring to handling money ... but it sure applies here.

It's my belief that if you teach young children good financial habits from the earliest ages on, you most likely won't see financial problems occuring in their lives later. The lessons will be engrained in them and they'll follow those lessons when faced with financial decisions as adults.

Sure wish they had started this Sesame Street "Talking Cents" project years ago! Maybe we wouldn't be facing some of the challenging financial crisis we are today.

The New York Times ran an article/video not too long ago showcasing this important new Sesame Street venture. I'm passing it on here so my readers are aware of its existence. (The link to the video is below. Sorry, downloading had been discontinued. But click and it will bring you to the YouTube/NY Times site to play!)

http://www.youtube.com/watch?v=4htwQTXT5mM

Think about passing this video and exciting information on to all the parents, grandparents, babysitters, pre-schools, etc. you know. It'll be a fun way for them to help little ones learn how to handle money. You'll also be passing on valuable information that will be of great assistance to those tykes financially as they grow to become adults.

And btw ... enjoy the video! I suggest you grab and watch the video with a cookie??

* I have a seminar that I offer to groups, schools, organizations, families regarding financial education and credit information for teens through young adults. Should you wish to arrange for a seminar at your school, meeting, or event ... please contact me. I'd be happy to work with you to present this valuable information.

Direct: 815.277.4036 Cell/Text: 708.921.6331

Skype: 630.219.1316

Email: gene@chicagobancorp.com

Website: http://www.genemundt.com

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