Sunday, May 31, 2015

Why our World Would End if Mortgages Disappeared


Who better than Gary Keller, founder of Keller Williams and Jay Papasan, VP of KW Publishing  to share their opinions about mortgages…this is an excerpt from my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye

But before we get to that, here are my top 3 reasons to utilize a mortgage to your advantage when buying a home.
1.   Who wants to part with their cash?
No one.  Why would you?  If you can keep your cash in the bank and use the bank’s money to buy a home, why would you part with your cold hard cash? Or what if you don’t have the cash to buy a home? Who has $300,000 laying around?
2.   Interest Rates are at Record Lows
Interest rates are still hovering in the 4.0% range.  Why wouldn’t you grab this money that’s practically free while you can get it? If you’re going to borrower money, the cheaper you can get it, the better.
3.   Mortgage Interest is Still tax deductable
Check with your licensed CPA to make sure you can take advantage of this tax deduction.  Your tax specialist should be able to let you know how much you can save by becoming a home owner with a mortgage.
  
But seriously, why our World Would End if Mortgages Disappeared?  Well, for each real estate transaction with a mortgage, it takes about 25 people to get the job done.  From your licensed loan originator to the appraiser to your real estate agent and closing title company there are many people in the middle.  Also, if people could not use the bank’s money and had to spend their cash to buy a house, the housing industry would slow to a crawl. Which means retail would also be affected.  Such as the big box stores for home improvement and electronics.  Our economy would be seriously crippled if mortgages disappeared.  So, the next time you buy a house with a mortgage, feel great about helping the economy!

And without further ado, here’s the excerpt interview with Gary Keller & Jay Papasan.

Interviews with Gary Keller and Jay Papasan of Keller Williams Realty
As chairman of the board for Keller Williams Realty, Gary Keller helps provide strategic direction for the company at large. In addition to his leadership role with the company, Gary and his writing team have penned several national bestsellers: The Millionaire Real Estate Agent, The Millionaire Real Estate Investor, SHIFT: How Top Real Estate Agents Tackle Tough Times and The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results.
Jay Papasan, who after a successful publishing career in New York, co-authored the Millionaire Real Estate series with Gary Keller, collaborated on the best seller FLIP, and serves as Keller Williams VP of Publishing.
Elysia: Please share two pieces of advice you have about mortgages.
Jay Papasan: A mortgage is a serious responsibility and warrants very careful attention to what you can truly afford and what kind of mortgage can best help you reach your financial goals. However, a mortgage is a tremendous privilege. Imagine: if you couldn’t borrow the money to buy your home, you’d have to pay cash. If you thought coming up with a down payment was challenging, imagine what it would be like to save the whole purchase price!
In general, you’ll probably discover that mortgage loans are less confusing than you might imagine. Actually, what appears as a vast array of loan choices in the mortgage market today are all just simple variations on a few major types.
Elysia: Gary, what are your top three guiding principles for client service?
Gary Keller: Win, win or no deal. Integrity: do the right thing. Customers always come first. When we talk about client service, the definition of a professional is someone who knows what they know and knows what they don’t know. When you are faced with a situation with a client and you’re not sure of the answer, it’s not about looking like a professional, it’s about being a professional. Just be honest, and say, “That’s a great question. I want to give you the best answer. Would it offend you if I got back to you later today/tomorrow with an answer? I work with an amazing team and I’d love to run my thoughts by them and make sure you’re getting the best possible information.” Understand your strengths and leveraging the team around you and in your brokerage to give your clients the best service.

Elysia: Thank you Jay & Gary, I understand why you have raving fans and a successful growing international real estate company!

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

To get on our waiting list for my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, go to our website www.bestmortgagebook.info
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