Who’s Paying for the Social Security Payroll Tax Cut?

On February 22, 2012, In Business, Colorado Springs Mortgage Lender, Colorado Springs Mortgage Rates, Personal, By Michael Gordon

This Colorado Springs Mortgage Lender is not pleased with how Congress has decided to pay for the initial extension of the Social Security payroll tax cut, nor how they are considering paying for an additional extension. According to H.R. 3630, which was passed on 12/17/2011, Congress is requiring Fannie Mae and Freddie Mac to increase the fees they charge for guaranteeing 1-4 family residential mortgages by .10%, beginning 04/01/2012 for a period of ten years, (Actually, the increase has already been priced into mortgage loans closing after 02/12/2012). These fees are to be passed directly to the US Treasury in order to offset the lost revenue from the extension of the Social Security tax cut. While one tenth of a percent does not sound like a large number, consider that on a $200,000 mortgage loan, the increase in interest expense will be close to $200 per year, and that is for the life of the loan.

So who is paying for the Social Security tax cut? The answer is any borrower who takes advantage of the current low interest rates in order to purchase or refinance a residential property, with a conventional loan guaranteed by Fannie Mae or Freddie Mac, is paying for a small portion of the tax cut with every payment they make. It is difficult to imagine the logic behind this bill, since Washington DC has been promising to rescue the housing market through a variety of tax credits, loan modification plans and refinance options, none of which have produced the desired results. Maybe since rates are at historic lows they figured the American public wouldn’t notice a mandated rate increase of .10%, especially since we would all be rolling in the dough from a two month extension of the tax cut on social security wages, or $3.33 savings for every $1,000 in wages.

 
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IKEA – Interesting Business Model

On August 18, 2011, In Business, Colorado Springs Mortgage Lender, Personal, By Michael Gordon

As a Colorado Springs Mortgage Lender, I am always interested in learning about business models of various companies. Last week I had opportunity to visit the new IKEA store located in the Centennial; what an experience to say the least.

If you have never been to an IKEA store, picture a gigantic blue cube with big yellow letters across the front. How big? Information I have read indicates 415,000 square feet of big. Basically the size of a small shopping mall all devoted to home furnishings, accessories and of course Swedish meatballs.

Now maybe it had to do with the fact that it was only the second Saturday since the grand opening, by this Colorado Springs Mortgage Lender’s first IKEA experience began with parking lot attendants directing traffic as cars streamed onto the 13.5 acres site. While one website indicates they have 1,500 parking spaces in the building, we actually ended up parking in an overflow lot of a neighboring shopping center.

After a small wait just to enter the store, we embarked on a journey similar to a salmon swimming upstream. You see, IKEA has arrows directing the flow through the store, but since the area we wanted was towards the end, we decided to fight the current for the sake of time. The store is arranged in sections based on the functionality of the furniture (bedroom, kitchen, media, etc), and there are approximately 50 different furnished rooms spread throughout the store. It is a very well designed showroom, and full of accessories for every room. They even have a 500 seat restaurant, I guess to provide the energy needed if you truly wanted to spend the day.

Once at our destination, we located the items we wanted and proceeded to write down their location by aisle and bin numbers , all the time thinking this will help a few of the 400 employees (they refer to them as coworkers) locate the items before loading them into our SUV.  Boy was I mistaken. When we arrived downstairs at pick up, we soon realized that locating and loading was not the responsibility of any of the 400 coworkers, it was our responsibility to locate, pay for and load. While it was not difficult to locate and load the items, as they are all unassembled in flat rectangular boxes, it was more do-it-yourself than this Colorado Springs Mortgage Lender was expecting.

Once back home and unloaded, assembly of the nicely finished practical board furniture was very user friendly and required a minimal amount of common household tools.  It appears their design and manufacturing process has been well thought out and somewhat perfected.

In addition to being satisfied with my visit to IKEA, this Colorado Springs Mortgage Lender was intrigued with the business side of IKEA. They obviously invest their resources into designing and building furniture that is easy to assemble and can be shipped and distributed in an efficient manner since all the boxes are flat and stackable. They focus on making their showroom very inviting and simple, which encourages shoppers to purchase the additional accessories needed to achieve a similar look at home, and they do so at a price point that promotes impulse buying. Different from most traditional home furnishing stores, but obviously very appealing to the consumer. Will I go back, certainly, why spend top dollar on furniture that will just be sold or donated once the kids leave for college.

 
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A Guaranteed Way to Generate Business

On July 29, 2011, In Colorado Springs Mortgage Lender, Colorado Springs Real Estate, Humor, Personal, By Michael Gordon

As a Colorado Springs Mortgage Lender, my business is affected to a great degree by factors outside of my control (home sales activity, interest rates & seasonality) to name a few. Having been in the mortgage business for the past nine years, I have become accustomed to the ups and downs of the market; and realize I have to continue building strong relationships with my clients in order to be able to meet their home financing needs when they arise.

While there is only so much this Colorado Springs Mortgage Lender can do to increase business during the slow times, there is one guaranteed activity that always seems to increase my volume of business……Schedule a Vacation!

This dynamic is not exclusive to me, pretty much every one of my colleagues at Peoples Mortgage experience the same thing when they schedule a vacation. During the five days leading up to vacation, we all seem to have a flurry of activity. Why this happens, I have no idea, it just does. Sure most people will tell you they accomplish more during the week before vacation, and numerous studies have show this is due to an increase in their focus to accomplish more in a limited time in order to earn the reward of undisturbed time away from the office.  The difference here is that there was not much on which to focus before scheduling the vacation, and all of a sudden there becomes much on which to focus.

Don’t get me wrong, I appreciate the new business and the opportunity to earn new clients, it’s just and interesting dynamic. From now on, this Colorado Springs Mortgage Lender is scheduling a vacation every month.

 
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The Reward of Working with First Time Home Buyers

On July 1, 2011, In Colorado Springs Mortgage Lender, Colorado Springs Mortgage Rates, Colorado Springs Real Estate, First Time Home Buyer, By Michael Gordon

As a Colorado Springs Mortgage Lender, I have had the opportunity to work with a variety of clients over the past nine years; from the experienced real estate investor, to the couple buying their seventh and final home as they head into retirement, to the first time home buyer taking that step into home ownership. And while all of my clients bring unique circumstances to the transaction which makes the job of this Colorado Springs Mortgage Lender interesting and enjoyable, it is the process of working with a first time homeowner that usually ends up being the most rewarding.

The profile of most first time home buyers typically looks like the following. They are late 20’s or early 30’s, have worked to save money for a down payment, managed their credit and debt appropriately, and have done extensive research on the process (usually to the point of information overload).  Of the above factors, the fact they have money for a down payment and have acceptable credit and debt levels makes it easier for them to qualify for mortgage financing; the fact that they have overloaded themselves with information (usually from the internet or from friends who have recently been through the process) is what gives me the opportunity as a Colorado Springs Mortgage Lender to provide clarity as I explain the actual process, to make the process relevant to their situation as we explore the loan options from which they can choose, and to overcome the fear of the unknown as I educate and answer the questions that allow them to make an informed decision.

The reward for this Colorado Springs Mortgage Lender comes at the closing table when my clients are handed the keys to the first home, signaling the accomplishment of a big goal and the beginning of a new season in their life, and with a smile on their face they say “Thank you for making this so much easier than we expected.”

 
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My High School Coaching Experience – Part 2

On May 24, 2011, In Colorado Springs Mortgage Lender, Personal, By Michael Gordon

My previous post concluded with the following question.  “Could this Colorado Springs Mortgage Lender make a difference in shaping our next generation of men?”  The question originated from the realization that my role as a high school lacrosse coach was less about teaching lacrosse skills, and more about teaching these adolescent males some life skills.

Before I answer that question, let me provide some background regarding the makeup of the team.  This was the “C” Squad team, which was comprised of 40 young men ranging in ability from never played before to almost made the JV level team. Two other men and I stepped up and volunteered to coach the team two weeks after the start of the season, as the coaching obligations to that point were being shared by varsity team coaches. Typically a lacrosse team would have between 20 and 25 players, so from the start we were working with 15 additional young men. Imagine for a minute 40 players (some really upset they didn’t make a higher level team) and only 3 coaches, get the picture?

It quickly became clear that for this Colorado Springs Mortgage Lender to make a difference, I had to come to grip with a few realities.

  1. I was their coach, not their friend. I could be friendly, but I could not be their peer.
  2. Not every player wanted to be there, some were forced to be there.
  3. Most of the time, any disrespect directed towards a coach was to test.

Keeping these in mind allowed us to focus our attention on what ultimately ended up being 34 players, as those who truly did not care about being a member of the team ultimately quit. Over the course of seven weeks we did our best to develop relationships with various players, encourage them in their struggles on and off the field, hold them accountable for their actions, and instill some character lessons into their lives. 

So, was this Colorado Springs Mortgage Lender able to make a difference in the lives of these young men? I believe the answer is yes, and although it may be years before the seeds that the other coaches and I planted actually develop into recognizable results, I am confident that our motives of developing these young men into men of character will bear fruit in their lives.

Oh, and just in case you were curious, the team finished 6-3 on the season after a 0-3 start.

 
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My High School Coaching Experience – Part 1

On May 20, 2011, In Colorado Springs Mortgage Lender, Personal, By Michael Gordon

One of the benefits of being a Colorado Springs Mortgage Lender is that my schedule is somewhat flexible and allows me to be involved in the activities and interests of my kids. So when the opportunity presented itself to coach my son’s high school lacrosse team, the logistics of being out of the office from 2:00pm on each day was an easier challenge than what I was about to face during my first year coaching high school boys lacrosse.

During the past nine years, this Colorado Springs Mortgage Lender has coached both baseball and lacrosse, although that was at a club level and dealt mainly with coaching basic skills to young boys. So one question I had going into this season was “Is my knowledge of lacrosse sufficient to be an effective coach at the high school level”. The answer to that question was clear after the first week of practice, yes it was.

I say this not because I possess this deep knowledge of lacrosse, heck I never even played lacrosse growing up, as it was an east coast sport and I grew up in California. No, I say this because after a few days it became apparent that the real need these young men had was not to improve their lacrosse skills; it was to improve their life skills during their transition into manhood.

What an eye opening experience for this Colorado Springs Mortgage Lender to be responsible for forty adolescent males, five days a week, two hours a day, each one with a different story. It really didn’t matter what background, ethnicity, parental situation or grade level; every one of these young men was navigating through the confusing transition into manhood, and they all needed varying degrees of direction.

Bottom line….seven weeks to get to know forty young men and make a positive impact on their journey into manhood. So the question regarding my lacrosse knowledge was actually a non-issue, as it was more a question of “Could this Colorado Springs Mortgage Lender make a difference in shaping our next generation of men?”

Stay tuned for the answer to that question and more in my next post.

 
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Choosing to Make Big Decisions vs. Having to Make Big Decisions

On May 13, 2011, In Colorado Springs Mortgage Lender, Colorado Springs Real Estate, Personal, By Michael Gordon

Last week, this Colorado Springs Mortgage Lender had the pleasure of speaking with a group of people who are considering relocating with their employer from California to Colorado Springs.  Having made the exact same move nine years ago, I understand the thought process and emotions involved with deciding to uproot and move your family half way across the country.

Not only are there numerous practical and logistical considerations involved with the decision, there are also the emotional aspects of moving that have to be processed before and after finalizing your decision. Like this Colorado Springs Mortgage Lender, most of these people undoubtedly have never lived any place other than California, which can be a difficult place to leave due to the climate, culture and the numerous activities available.

These people are also dealing with the emotions of leaving family and friends (their social and support structure), which can be a scary thought due to the deep seated relationships which we tend to become dependent upon as we move through life. So as a Colorado Springs Mortgage Lender who made the same move these people are considering, I get most of what they are having to process with the exception of one thing; when we moved, we chose to make the decision to move, these folks have to make the decision to move or stay. Make sense?

Our decision to relocate was not a decision prompted by employment, had we stayed in California, nothing else would have had to change in our lives.  Not the case for this group of people, as their decision is twofold, and either way a part of their life (employment or location) will change.  I can only imagine the pressure and resentment that must surface at times as they process this decision, and pray that whatever they decide, they do not let the seeds of doubt and regret take root and prohibit them from moving forward with their life once the decision is final.

Whatever they decide, this Colorado Springs Mortgage Lender is both honored and blessed to be a resource for those who desire my assistance in processing the financial and/or personal aspects of their decision.

 
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Love & War

On May 11, 2011, In Books, Personal, By Michael Gordon

For this Colorado Springs Mortgage Lender, these two words represent opposite ends of the spectrum, yet they often seem to be inseparable. Consider a romance movie; there always seems to be some struggle, some battle, some opposing force trying to derail the love. Or watch a war movie; someone involved in the battle is fighting for someone or something they deeply love. So while these two words seem appropriate when describing the plot of a movie, they caught me off guard when I discovered they were also the title of a marriage book.

Love & War, by John & Stasi Eldredge, is a book I stumbled across on an Active Rain profile. Once I finished the first chapter online at LoveAndWar.net, I knew this was a book that I had to read. After my second time through the book (now starting my third), this Colorado Springs Mortgage Lender can honestly say this is the best book on marriage that I have ever read.

The authors not only provide some great insight into their marriage, sharing the highs and lows they have experienced over 25 years, they also provide incredible clarity into God’s design and purpose for all marriages. What impacted me most about the book is that they give you the “Why” as to the purpose God has for marriage, while being honest about how difficult it can be at times. I don’t know about you, but when I have a clear sense of “Why”, the “How” becomes an easier question to answer.

As a Colorado Springs Mortgage Lender, I have the privilege of getting to know many couples, sometimes while they are in the middle of a war. You can bet that when the opportunity presents itself, this is the book that I will be happy to share with others

 
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Lead Them

On May 5, 2011, In Colorado Springs Mortgage Lender, Personal, By Michael Gordon

As a Colorado Springs Mortgage Lender, one of my responsibilities is to lead my clients through the decision making process as it relates to the options available, with the goal of educating them to the point that they make an informed decision that best fits their specific situation. Sometimes, the best option is very clear, while other times it takes some work to wade through the pros and cons before they can get comfortable with a decision. Regardless, this Colorado Springs Mortgage Lender realizes that one of the reasons they have entrusted me to help with their home financing needs is due to my ability to lead.

This same responsibility to lead requires even more of me in my role as a husband and father, as I believe that it is something which is required of me as head of my family. While leading comes natural for most men, the discipline of leading a family over many years seems to ebb and flow through the various seasons of life. Since this is a calling that does not always produce immediate tangible results, and which goes against a culture that measures success by immediate results instead of effort and discipline over extended periods of time, this Colorado Springs Mortgage Lender has to continually refocus himself on the long term benefits of continuing to lead his family, even when there seems to be no forward movement.

A couple of examples of what can detract from the call to lead a family are the pursuit of career success and accomplishment, with the belief that the long hours away from the family will eventually benefit the family in the form of monetary gain; and the need to over indulge in recreational activities as a form of release from the pressures of everyday life. While neither striving to build a successful career or enjoying recreational activities are bad things in and of themselves, devoting too much time to either at the expense of one’s calling to lead their family can become counterproductive and damaging to the family.

I touch on this subject not as an expert in family psychology, nor do I exclude the leadership role which a mother plays in the family, as I feel it is a vitally important part of a healthy family; instead I discuss this subject because I am a man who at different times in my life has fallen into the pattern of chasing success and/or recreational pursuits at the expense of truly leading my family. As a Colorado Springs Mortgage Lender, I take my profession seriously and always strive to serve my clients to the best of my ability, yet my career will never have the same importance as the calling I have to lead my family through the trials we will face in this ever changing culture.

Let me leave you with the lyrics to a song by Sanctus Real, which I feel does a great job of speaking to the leadership calling of a husband and father.

Lead Me

 I look around and see my wonderful life, almost perfect from the outside.
In picture frames I see my beautiful wife, always smiling, but on the inside, I can hear her saying…

“Lead me with strong hands, Stand up when I can’t; don’t leave me hungry for love, Chasing dreams, what about us?

Show me you’re willing to fight, That I’m still the love of your life
I know we call this our home, But I still feel alone”

I see their faces, look in their innocent eyes, They’re just children from the outside
I’m working hard, I tell myself they’ll be fine, They’re independent,

But on the inside, I can hear them saying…

“Lead me with strong hands, Stand up when I can’t; don’t leave me hungry for love,Chasing dreams, but what about us?

Show me you’re willing to fight, That I’m still the love of your life
I know we call this our home, But I still feel alone”

So Father, give me the strength, To be everything I’m called to be
Oh, Father, show me the way, To lead them, Won’t You lead me?

To lead them with strong hands, To stand up when they can’t; don’t want to leave them hungry for love, Chasing things that I could give up

I’ll show them I’m willing to fight, And give them the best of my life
So we can call this our home, Lead me, ’cause I can’t do this alone

Father, lead me, ’cause I can’t do this alone

 
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Ogres Are Link Onions, They Have Layers

On March 20, 2011, In Uncategorized, By Michael Gordon

All of us in the mortgage industry can relate to Shrek’s analogy, as it seems like we are being covered by more layers with each new announcement.  At the core are the basic Agency guidelines, Fannie, Freddie, VA and FHA, then the major investors (companies who purchase from correspondents and brokers) impose their own guidelines which are usually stricter than those set forth by the Agencies. On top of those may be additional guidelines specific to the company which originates the loan. In addition, you now have new regulations on a federal level, such as MDIA (Mortgage Disclosure Improvement Act) and HPML (Higher Priced Mortgage Loans), which end up covering all the layers. How do you keep them all straight?

As a Colorado Springs Mortgage Lender working with the largest privately owned Colorado Springs Mortgage Company, we have the resources to continually stay abreast of the rapid changes in the mortgage industry in order to make sure we are providing our clients accurate advice during the financing process.  Too many times, the Colorado Springs Realtors with whom we work have communicated to us the delays their clients have experienced when using an out of state lender, instead of a local Colorado Springs Mortgage Lender.

Our team at Peoples Mortgage works diligently to stay educated on the guidelines in the rapidly changing market, and strives to deliver as promised on each and every client we have the opportunity to serve. Make sure that whatever Mortgage Professional you decide on to meet your home financing needs, they have the experience, knowledge and resources to deliver your loan as promised and on schedule; you’ll be happy with the results when you sit down at the closing table by choosing wisely.

 
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