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Added for You - The Smoke and Mirrors of Big Banking and Your Mortgage
Your personal marketing program needs certain ingredients in order to succeed. Chief among them — research, focus, testing, honesty and enthusiasm.Fundamentals of research Effective marketing demands thorough research, the more of it the better. In fact, I would rank research in the top-three factors of successful marketing.Before you can write a brochure to inform your audience ... before you can write an advertisement to persuade your audience ... before you can write Web content to educate your audience ... you have to know everything about your audience.You have to know what their days are like, how they define success, what they worry about. Everything. Only then can you begin to communicate to them effectively.Fundamentals of focus In marketing and communications, seduction lurks around every corner. New ideas emerge during a prolonged campaign. Distractions and side doors present themselves. “This is old,” you might think. “I need to shake things up a little.”Focus and consistency bring benefits over the long haul, but it takes patience. An ad-testing program, for example, could take several months to start producing valuable insight. It takes steady measurement. It takes long-term vision. It takes focus.Fundamentals of testing Eugene Schwartz, author of Breakthrough Advertising, said it best: “There are no answers in direct mail except test answers. You don’
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Landing a new client is like courting a potential spouse. The first date is usually a make or break situation and if the door is still open, the work has just begun. Like dating, you’d better give your prospect a pretty good reason to meet with you again, because there is usually more than one suitor.Getting the Next DateThe key to getting that next date or meeting with a prospect is to deliver enough value to make a subsequent get-together attractive. At our company, our first meeting consists of a thorough questionnaire. Some of the questions we cover are:What is the nature of the problem as you understand it?What are the most urgent aspects of the problem?What impact does this have on your organization?Are you willing to make investments in technology when there is a clear ROI?Who will be involved with making these decisions?What other areas of your organization are you considering technology solutions?What qualities do you look for in a vendor?What will be the key factors driving your decision on this project?We follow-up with a letter and summarize the client’s problems, the cost of the problems and the solutions we can bring to solve them. This gives the client a clearly articulated assessment of their situation based on the information they’ve disclosed to us. It’s often a more accurate and precise appraisal then before they met with us.We try to complement their understanding of the
Integral to the whole mentality of the proverbial “American Dream,” at least for the “successful” middle class, is home ownership. This has been considered a financial success gauge of sorts for so long that potential first time home buyers will do just about anything to “qualify” for that first home loan or mortgage and they feel so jubilant when they succeed. Little do they realize they are being greatly taken advantage of. They are actually being defrauded in some ways. They are paying interest so excessive that even the word “excessive” is a huge understatement. Let us explore the banking industry a little and get to the bottom of what is really going on, get to the reality, versus the illusion the banks have so artfully created.
You might find it interesting to discover that the word, “mortgage,” Mort-Gage, means death debt. Not so warm and fuzzy sounding all of the sudden is it? Anyway, if you have a standard 30 year mortgage, as I mentioned earlier, you are being greatly taken advantage of. That 5.9% interest rate sounds pretty decent right?? Smoke and mirrors. If you never refinance, by the time you pay off that loan in 30 years you will have paid for your home 2 and a half to 3 times. That is significantly more than 5.9% of balance you borrowed is it not?
Let’s put that in to real numbers. We will be a bit more closer to the average though and use a 7.5% interest rate. A $175,000 mortgage at 7.5% average interest rate amortized over 25 years equals an actual indebtedness of $384,000 (principal and interest). These are after tax dollars! If you are in a 40% tax bracket, you will have to earn a whopping $640,000 before tax in order to pay off the $175,000 mortgage. $640,000 minus $175,000 equals a $465,000 difference.
But actually, on average, Americans refinance every 4.9 years. So really, few rarely stay in a loan anywhere near the standard 30 year term anyway. And since mortgages are front end loaded on the interest, you will have paid very little on the principle in 5-10 years, most of your equity being achieved through appreciation of the homes value. In fact, in 20 years you will still owe 60-70% of your principle. And the bank’s gouging of your wallet is far from finished. Consider this.
The bank ca
Identity theft is a serious problem nowadays. Almost everyone is susceptible to being a victim. As technologies advance, so does the capabilities of such crime from developing further. Identity theft happens when somebody uses your personal information in order to commit fraud and other crimes. There are many ways that criminals can get into your personal information. They can get your personal information from other businesses or institutions where have been a customer.There are companies that may be keeping your personal information and these businesses are prime targets for identity thieves. One way they can steal these personal information records is by being former employees. Criminals may also be able to get their hands on these records by bribing other employees. More technologically advanced criminals may be able to hack these records online. They can also trick other employees to give them such valuable information that can be worth millions to those who need them.Other ways that criminals may be able to steal your personal information is through stealing your mail as well as your bank or credit card statements. Your personal information can even be stolen from your tax records. Other criminals can simply go through your trash or that of careless companies who do not take good care of disposing of confidential but seemingly unwanted records.Some criminals even go to the extent of using high tech gadgets in order to retrieve your personal infor
You might find it interesting to discover that the word, “mortgage,” Mort-Gage, means death debt. Not so warm and fuzzy sounding all of the sudden is it? Anyway, if you have a standard 30 year mortgage, as I mentioned earlier, you are being greatly taken advantage of. That 5.9% interest rate sounds pretty decent right?? Smoke and mirrors. If you never refinance, by the time you pay off that loan in 30 years you will have paid for your home 2 and a half to 3 times. That is significantly more than 5.9% of balance you borrowed is it not?
Let’s put that in to real numbers. We will be a bit more closer to the average though and use a 7.5% interest rate. A $175,000 mortgage at 7.5% average interest rate amortized over 25 years equals an actual indebtedness of $384,000 (principal and interest). These are after tax dollars! If you are in a 40% tax bracket, you will have to earn a whopping $640,000 before tax in order to pay off the $175,000 mortgage. $640,000 minus $175,000 equals a $465,000 difference.
But actually, on average, Americans refinance every 4.9 years. So really, few rarely stay in a loan anywhere near the standard 30 year term anyway. And since mortgages are front end loaded on the interest, you will have paid very little on the principle in 5-10 years, most of your equity being achieved through appreciation of the homes value. In fact, in 20 years you will still owe 60-70% of your principle. And the bank’s gouging of your wallet is far from finished. Consider this.
The bank c
Regardless of what company you hire to clean your building, you need to know WHO they give the keys to. That is to say, who are they paying to do the work.Bear in mind, that the smooth talking salesperson will NOT be cleaning your building. You hired them to find the best possible person to do the work. But, how do you know that the person they choose is ‘the best’, and not simply the ‘most available’?Below are some of my Pro’s and Con’s regarding the three legal groups of janitors that may be in your building. (Illegal immigrants are not listed, because a wise business owner would never allow them into their facility.)The first group is the most common one. It is called the Employee Group. This group has an established Employee-Employer relationship with the company you hired to service your facility. The Pro’s of this group are quite limited. Outside of the legal protection that you receive against their injury or legal claims, there is little advantage to hiring them. Typically, the Employee Group is the lowest paid group of the three. They also have the highest turnover and the highest occurrence of theft and damage of property.The second group is the Sub-Contractor Group. This group is often times another janitorial company, which has a standing contract with the company that you hired. They are called upon to service your account, in the name of the other company. The only reason a company would become a ‘Sub’ is to keep their
Let’s put that in to real numbers. We will be a bit more closer to the average though and use a 7.5% interest rate. A $175,000 mortgage at 7.5% average interest rate amortized over 25 years equals an actual indebtedness of $384,000 (principal and interest). These are after tax dollars! If you are in a 40% tax bracket, you will have to earn a whopping $640,000 before tax in order to pay off the $175,000 mortgage. $640,000 minus $175,000 equals a $465,000 difference.
But actually, on average, Americans refinance every 4.9 years. So really, few rarely stay in a loan anywhere near the standard 30 year term anyway. And since mortgages are front end loaded on the interest, you will have paid very little on the principle in 5-10 years, most of your equity being achieved through appreciation of the homes value. In fact, in 20 years you will still owe 60-70% of your principle. And the bank’s gouging of your wallet is far from finished. Consider this.
The bank c
Marketing for an Industry Association is very difficult because there are a limited number of businesses in each industry and only a percentage of those businesses are willing to join an association. Also many industry associations compete against each other and in some cases there are several Industry Associations for a single industry. Then there are often regional associations and not every company wishes to join all of them. This makes it difficult for Industry Associations to survive.For this reason many Industry Associations work very hard to recruit vendors of the industry to also join to support its members. Unfortunately if too many industry vendors join invariably the members who are constantly being bombarded with marketing and sales reps choose not to renew. Most large Industry Associations have annual conferences and Expos to keep their Industry Association strong. Often they also have trade journals or they work with other magazines in their industry to help promote them in a win-win situation.Large Industry Associations looking for more ways to market and increase revenues and many are turning towards online Expos, which allows them to help market all of their industry vendor members to their regular business members. E-Expos are nice because they work 24/7 on the Internet and this allows new leads to constantly manifest themselves for the vendor members. Perhaps you have noticed in your industry this new tactic of E-Expos and its growin
Let’s put that in to real numbers. We will be a bit more closer to the average though and use a 7.5% interest rate. A $175,000 mortgage at 7.5% average interest rate amortized over 25 years equals an actual indebtedness of $384,000 (principal and interest). These are after tax dollars! If you are in a 40% tax bracket, you will have to earn a whopping $640,000 before tax in order to pay off the $175,000 mortgage. $640,000 minus $175,000 equals a $465,000 difference.
But actually, on average, Americans refinance every 4.9 years. So really, few rarely stay in a loan anywhere near the standard 30 year term anyway. And since mortgages are front end loaded on the interest, you will have paid very little on the principle in 5-10 years, most of your equity being achieved through appreciation of the homes value. In fact, in 20 years you will still owe 60-70% of your principle. And the bank’s gouging of your wallet is far from finished. Consider this.
The bank c
Mission statements are often used by organizations in the introduction section of written material, such as brochures and sales or fundraising letters, or on the homepage of their website. If you do this, don't assume that the reader will be able to position your organization. A few cues early in your introduction will decrease confusion about who you are and what you do.1. Type of OrganizationYour introduction should explain the type of organization - nonprofit, business or government. Don't assume that the reader will be able to figure this out from your mission statement.2. Size and Scope of Your OrganizationAn introduction should give the reader some indication of the size and scope of your organization. State if you operate solely in one city, or across the state or nation, or internationally. Provide some indication of your size as well, such as number of employees, customers served or products sold.3. Goals and Vision of the OrganizationExplain both the long term vision for your organization and more immediate goals. The reason for this is to give the reader an idea of your ultimate purpose, which is probably expressed in your mission statement. But if your ultimate purpose is huge, like ending violence and establishing world peace, then a more immediate, measurable goal will help to engage people in your purpose.4. Who Is In Charge?Another way to position your organization is to explain how it is governed and
The bank can loan up to 9 times what it has on deposit. What’s the significance of this? They only had to have a little over $22,000 on deposit for example, to loan $200,000. How is this possible? Where did the other $178,000 come from? Did it just appear from nothing? As a matter of fact it did.
That money literally sprang into being when they transferred it to your account or wrote you that check. So the bank ends up making two-and-a-half to three times the amount of money they never loaned you in the first place, and they charged you almost all of that interest on nothing. So you see, all this interest the bank is receiving, all these interest payments, mostly paid in the front end of your home loan, and virtually every other loan out there, amounts to rivers of interest payments on nothing! If you are the one loaning the nothing money, that’s not too shabby. How much easier and risk free can making a fortune get? You didn’t have to risk a penny, and yet you get to collect interest! Earning money from “money” created out of thin air. How is that different from counterfeiting? How is that different than me printing money on my money machine in my garage, loaning it to you, and charging you interest on it. The only difference is that they can do it “legally,” and I would go to jail for it.
Any interest, no matter how little, charged on nothing, I would have to call excessive! Wouldn’t you agree? And if most of us refinance every 5 years, their interest on nothing is compounded again, because what you owe them never really goes down much, in fact in many cases it would go up. Makes you want to go to your mortgage lender and have a talk with him doesn’t it? But do you really think they are going to tell you how to cut their profits? I don’t think so. So is there anything you can do??
What if you could take your current mortgage payment and cut it in half? Say you have a $1000 house payment. What if you could take $500 of that money that was previously going t
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