home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Stories For Salespeople
Loan originator and broker news and stories. Advice about improving mortgage loan originations. Insights to and profiles of mega-producers.
sales stories | sales books | originator newsletter




Originator Claims Success From Financial Counseling

4 step program creates opportunity beyond the purchase mortgage

September 29, 2003

By COCO SALAZAR


One Washington mortgage originator reports increasing his production by counseling borrowers about wealth-building using a mortgage.

East Bay Mortgage Inc., a company that reportedly targets physicians, attorneys and other affluent individuals, practices a four-step approach to financial planning that can increase borrowers' net worth (assets increase more than debt).

"A loan officer has to want to impact people's lives in a positive way," said Tane Cabe, the company "expert" who said he has funded over $1 billion in loan volume throughout his career. As opposed to setting up a loan, getting a fee and moving on to the next loan, originators can add value to their business by taking more time learning how to help people make wise investments with their money.

Upon the purchase of a home, instead of giving a large down payment, Cabe said clients should be advised to use it toward debt. The same idea goes for refinancing, which he suggests should be "cause-based" (help with finances), rather than "rate-based." A lower rate won't be an asset if homebuyers don't use their home equity wisely.

Cause-based refinancing provides money to achieve an individual's first two steps to financial wellness. The first step recommends establishing a cushion of cash for at least two to three months. Credit cards should be avoided and cash saved to use for emergencies instead.

Secondly, all debt outside the home should be paid. While people think its normal to have a car payment, paying cash avoids interest charges, Cabe said.

Dallas-area accountant Ron Baker endorsed the steps because borrowing from home equity can save people additional debt. Interest on home loans is tax deductible, versus interest on consumer debts like car loans and credit cards that isn't, Baker said.

The third step requires the borrowers to save at least one year's income, which helps accomplish the fourth step -- pay off their mortgage in eight to ten years. People usually think 15-year mortgage loans are a smart choice, but they're not a quicker way out of debt, Cabe said.

Edward Harris, president of Northwest Tax Specialists in Washington, agreed East Bay's approach was a "good basic plan," but warned it takes someone who's disciplined and not a compulsive buyer to carry through successfully. Most Americans couldn't go through with it, he said.

Cabe, who operates from his office in Gig Harbor, agreed and reiterated the approach better targets those with a more steady flow of income.

"Add value and get [borrowers] more money...turning people into millionaires is impacting... it's well worth it," Cabe said.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]


SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders