
	Refinance Newsletter Prepared for Your Subscriber's Full Name		Courtesy of: Your Name Your Company Name Company Phone # Your Website

	Are You Managing Your Home Equity Properly? The equity in your home is earning 0%, is not liquid and is not guaranteed to be there in the future. Here is how to correct these problems.

I wanted to share with you some thoughts on managing the equity in your home. You may not be aware that the wrong time to borrow your money is when you need it most. If you are behind in your bills, have late payments on your mortgage, or have recently become unemployed, and you need to tap your equity to get you through till things get better, you may be in for a shock. Lenders will either laugh at you if you apply for a mortgage refinance, or charge you interest rates that are just too high. The best time to refinance your mortgage or to pull money out is when you are not behind in your mortgage payments, your credit score is still high and you are fairly current on your credit card bills, and you have had steady employment, either for an employer or on your own, for at least 2 years. What you need to do is to pull out enough money to create a cash cushion for you that would get you through at least 6 months' of unemployment. But, if you borrow the money, you need a place to put it so that it earns enough money to pay the interest cost on the borrowed money. There are a few ways to do this. One is to put it into a high yield CD that pays close to what the interest-only payment is on your mortgage. For example, if you can borrow $10,000 at 7%, and invest it at 5.5%, your annual cost to borrow the money will be $700. In the first year, your $10,000 would have earned $550, so you would be out-of-pocket by $150. However, if you reinvest the interest earned on CD, soon you will be at break-even, where the loan is not really costing you anything, meaning you are making more in interest than you are paying on the mortgage. Now, if you need the money, you will already have it, and will not have to pay 10% to get it. If you were to sell your home, you simply pull the needed cash to pay off the mortgage balance from your investment.	As long as you don't invest your home equity in a volatile market like the stock market, you incur minimum risk by pulling out your home equity and investing it. The second alternative is to invest your equity at a high rate of return in a real estate investment fund. There is a fund that I am familiar with with that pays out 16% interest. The money is lent to real estate investors who are purchasing, rehabbing and reselling or refinancing properties that are purchased and rehabbed at a total cost not to exceed 65% of the after-repair-value (ARV) of the home. All purchased properties are secured by a mortgage and a deed of trust. To date, not one investor has lost any money in this Fund. If you have $60,000 in home equity and you borrow it at 7%, your annual cost of the money is $4,200. If you invest the money at the 16% and pay the $4,200 per year, at the end of 5 years, your $60,000 grows to over $97,000. After 10 years, it is worth over $175,000. Most homeowners are shocked to realize that their home equity has a ZERO percent rate of return. It is like taking money out of the bank and sticking it under your mattress. One other point about your equity is this - it is not guaranteed to go up, nor is it guaranteed to be there. Equity is only the difference between what someone is willing to pay for your house and what the mortgage balance is on the property. If there is a housing bubble crash or a major job loss in your area, your equity can either quickly go down or disappear entirely as houses get sold at lower and lower prices. I have seen this happen in early 2007 where borrowers wanting to refinance their home found that the value had dropped to below what they owed on the home!	What would you do then if you needed to borrow money? As you can see, it makes much more sense to borrow it now and invest it. A lender can not call your loan due if the value of the home drops below what is owed on it. In fact, most lenders do not even pay attention to the value of the home unless you refinance it or go into default. If you are interested in learning more about this real estate investment fund, please give me a call or send me an email. I will make sure that you get the information you are looking for. I can do an analysis for you to show you how you can pull the equity out of your home and invest it in any type of investment. I also have a free report that will show you in more detail how you can create wealth by properly managing the equity in your home. I will also show you the types of mortgages that work well with the concept of home equity management. In order to think along these lines, you have to get away from the concept of doing what you can to pay off your mortgage. If you invest your equity, you will always have more than enough to cover the mortgage balance, and to make the payments on the interest used to make the investment. Thanks for staying on this email list. I hope to keep you informed with new articles over the next few weeks.		About My Services I would like to help you with the task of refinancing your mortgage. To do this, I am able to do the following for you: Evaluate your credit and mortgage payment history Advise you on the various types of mortgage programs Resolve any issues on your credit report that can affect your mortgage. Provide you with a complete refinance savings analysis Make sure you have all the required loan documents Provide you with a Good Faith Estimate of closing costs Keep you informed as to changes in mortgage interest rates Determine any seller assist that you may ask from a property seller Co-ordinate all aspects of settlement or escrow, including title search, appraisal, paperwork and other services At Your Company Name, we offer mortgages for most buyers, including ones who are self-employed or who have damaged credit. We have lenders who offer 100% financing meaning no down payment for qualified buyers. We also offer mortgages with start rates as low as 1%, making it easier to pull cash out of your home. If you have any questions about how I can help you purchase your home, please call me at Company Phone #.