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EX ick h T ere PA fo G r E Issue 3

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How to use Mortgage Insider The Mortgage Insider magazine is a true interactive magazine that allows you to get additional information when you need it.

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Whenever you see a story or a ad you'd like more information on, simply click on the blue information button that appears in it.

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MUNCIE, Ind. (AP) - A landlord said he wanted people to see the pain of his property tax bill when he hauled $12,656.07 in coins and $1 bills to the county treasurer's office.

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Cary Malchow said the heavy load left him "out of breath" but it was worth watching three cashiers working overtime and guarded by sheriff's deputies on Monday to count every last cent of the semi-annual payment for his home, business and rental properties. "I did it so people can physically see what $12,000 is," said Malchow, who has staged other recent protests to draw attention to Indiana's property tax increases. It took 75 minutes to count out the cash, said Delaware County Treasurer Warren Beebe. "They were fast, they were hustling. They're used to counting money, but of course that left other people standing in line. It was an awkward situation," Beebe said Tuesday.

NOTICE The information contained in this publication is for reference only and should not be relied upon in any why. The publishers of the Mortgage Insider and all contributors recommend that any person considering a mortgage in Australia should obtain independent legal advice.

Malchow's protest prevented the office from making its daily bank deposit, costing the county an estimated $1,135.90 in interest that would have otherwise accrued overnight, Beebe said.

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MFAA INTRODUCES NEW HARDSHIP ASSISTANCE FOR BORROWERS The Mortgage and Finance Association of Australia (MFAA) has introduced new measures to ensure non bank lenders, mortgage managers and brokers assist borrowers who find themselves in financial difficulty. The Association has amended its Code of Practice in response to rising levels of community concern about the small number of borrowers who are finding themselves in some difficulty in servicing their loans. “Essentially, our members must now consider whether it is appropriate to vary the terms of repayment on a loan once they are aware a borrower is in financial difficulty,” said Phil Naylor, CEO of the MFAA.

“MFAA members owe their business success to the strong relationship they have built with borrowers. About 55% of all mortgages in Australia are written by non banks, mortgage managers and mortgage brokers and it is appropriate that they assist borrowers who find themselves in financial difficulty,” said Mr Naylor. “It is crucial, however, that borrowers who are in some financial difficulty, to advise their lender or broker immediately to ensure the best result can be achieved.”

The My Home Loan Approval web site is not affiliated with any one lender or brokerage firm so users get a totally unbiased response. The challenge only takes 60 seconds and is provided FREE OF CHARGE and its use can be totally anonymous. On top of that, the assessment results are provided INSTANTLY. There are products from over 170 lenders associated with the web site

suspending any action to recover any payments due under the credit facility and, if it has not listed a default already, not list a credit default in respect of the credit facility against the borrower until the matter is decided;

encouraging the borrower to make payments the borrower can afford pending the Member informing the borrower of its decision to alter the payment terms.

Under the new provisions, MFAA members can consider: •

the borrower’s request to vary the payment terms in good faith and within a reasonable time, giving regard to the

Free, fast and anonymous In a first for Australia, potential borrowers can now do 60 second assessment to see if they would qualify for a home loan. The web site offering this service calls it the "60 second home loan challenge".

borrower’s financial circumstances;

so borrowers get a pretty good idea about their chances of getting a home loan and how many products they may qualify for in a matter of seconds.

Further, MFAA members must act reasonably in assessing the borrower’s request to vary the payment terms under the borrower’s credit facility and must not require: •

the borrower to apply for the early release of any part of his or her superannuation entitlements; or

the borrower to obtain funds from family members, friends or other third parties, prior to the Member considering whether to, or agreeing to, vary the payment terms.

The web site includes products like Reverse Mortgage, Lo Doc and No doc loans as well as fully featured mainstream bank loans. To take the 60 second home loan challenge click the blue information button to be taken to www.myhomeloanapproval.com.au Everyone who does the challenge is eligible to receive a complementary copy of the eBook. Mortgage Secrets Exposed.

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Common Mortgage Refinance Mistakes During the process of getting a mortgage refinanced, many things might go the wrong way. The mistakes made while refinancing the mortgage may cost more a fortune for the borrower. Most of us, who overpay for their mortgages, may not even be aware of it. To avoid this, the borrower should take some time while researching for the options of mortgage refinance and should contact different lenders to get a better idea on how it works. Some of the valuable suggestions are given below: Many people do concentrate only on the interest rate while looking for mortgage refinance. Interest rates are very much important, but it should not be the only criterion as the rest of the aspects of mortgage may cost more if the closing costs are enormous. All the aspects of the mortgage need to be considered. To avoid this the borrower can get a good faith estimate from the lender in a written form, which is normally given, only if it is asked for. It will outline all the aspects of the loan to make an informed decision. Along with the interest rates, the length of the loan term and the amortization schedule should be studied, as it will give an idea about the payment to be made. Selecting a right mortgage will save money while at the same time wrong decision leads to financial disaster. Hence, it is good to know the basics of different loans and select the one, which is very suitable. The borrower should get a guarantee on the interest rate that will give him enough time to close the mortgage. In case of any fees charged for making a guarantee by the lender, the borrower should never get scared for paying the fee as the interest rate lock gives enough time to the borrower to close the loan. In case the borrower fails to close the loan before the expiry of the lock period, the lender will raise the interest rate, hence it should be made sure that the guarantee covers the points paid and what the borrower

gets for paying points. A borrower should not accept a loan that includes prepayment penalty as one of its conditions. Predatory lending practice is still a common phenomenon in the market. Despite laws protecting the borrower from predatory mortgage lenders, some of them will take advantage of the borrowers by charging more interest rates and lender fees. Mortgage guidebook can provide valuable knowledge on how to compare mortgage offers and select the best one from them.

good to correct the credit report incase of any mistakes in it and then apply for the mortgage refinance as the borrower can get better interest rates and loan term. (US Article) By Lesley Lyon

Break-even analysis has to be made to know how long the borrower needs to stay in his house to attain break even on the refinancing cost. Another mistake is that the borrower pays more towards mortgage insurance called as PMI. The PMI need not be paid if the person has 80 percent equity stake in his home. Since the interest rates and loan terms are dependent on the credit score, it is

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WEALTH WARNING: Bank Errors Could Be Costing You A Fortune. We Show You How To Find Them And Get Your Money Back. A study published in the Sydney Morning Herald discovered that chances are you are being overcharged on your home loan you don't even know about. This is not only unfair but insulting. This study found that .... • 54% of monthly bank statements contain errors. • 80% of errors favour the banks (that percentage has to make you suspicious). • The average monthly error is $242. As you can see the odds are NOT stacked in your favour so chances are your lender actually owes you some money.

"Find Errors In Your Statements Or They'll Give You ... $250 For Wasting Your Time." That is how confident the people at MortgageWatchdog.com.au are that you are sitting on errors in your statements. You get their software, check your statements and if there are no errors they will give you your money back PLUS another $250. MortgageWatchdog have over 11,000 and guess how many times people have found zero errors in their statements? Would you believe 6 times ... 6 times in over 11,000 people who have used their software to check their statements .. so you can see the chances of you not having errors in your statements is nearly impossible.

Why Would Anyone Think They Don't Have Errors In Their Statements? Have at look at some of their latest success stories.... "I have now been reimbursed the exact amount of discrepancy I had found using your program of $7,563.04 plus reimbursement of the cost of the package against my loan." - Ann-Maree Enders - Kingsley, WA. “Your software has uncovered overcharging by my bank to the tune of almost $1,300 just for the last two years. Like so many others, I had assumed the Bank would get the figures correct.” Mike V Bungendore, NSW "We found a discrepancy of $8,643.00 on our fixed loan and this has now saved us $33,000 over the life of our loan." - Mrs. Mackenzie - Logan QLD.

Special Discount for Mortgage Insider Readers As a special gift for our readers we have contacted MortgageWatchdog.com.au and asked if you could have a special discount on the software ... and the end result is that you have a 20% discount waiting there for you. This is not available through the front of their website, to receive the discount CLICK HERE. The best thing is that you still get their famous SuccessGuarantee - find errors in your statements or they refund you and give you an additional $250 for wasting your time. You can't get fairer than that can you?

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13 CREATIVE & SIMPLE WAYS TO SAVE AT LEAST $100 A WEEK Cash Bulge web site has some great tips on how all of us can save at least $100 a week. What

about $3-4 spent on lunch everyday as opposed to an average of 10$.

Savings: $36 per week.

could you do with an extra $100 laying around

2. Institute a ‘tax’ on your household.

every week? I’d probably save for a new laptop or

We all hate taxes. No, let me rephrase that, despise taxes.

go out more often, maybe create a stockpile of

However this is a little different. What about getting you and

beer (or create an ice cave). I was on my

each person living in your house to put $2 a day in a

disastrous commute this morning and I ran

savings jar? You can then use this money towards

through a checklist in my mind on how I could go about saving $100 a week so that I could invest in

anything. Clothes, food, movies, a long needed vacation, a car, anything basically, be as inventive as possible!

other things that would make my life easier or just

Savings: ~$20 per week (based on 2 family members).

more enjoyable for that

3. Change adds up quickly, don’t let it disappear under your couch.

matter. As I sat there, waiting for the D

You’re at your local

train to make its way out of the

StarBucks and you

Bronx and into Manhattan I

order a cappuccino

began my brainstorming. One

for $3.42. You get

thing after another and I

an ugly $0.58 cents

realized that there was a lot

back. I used to

you could do to save money

forget about this

with some simple tips. By

change, lose it, or

employing some of these tips

stuff it down my

you can save a bundle every

pants pocket for it

week and save it towards

never to be seen

something you would really like

again.

or to invest it. Let’s get to the

A week ago I

list.

1. Bag your lunch and bring it to work.

started saving all my change, I mean every single penny and dime. Then at

This is a goldmine so to speak. Personally, I spend about

the end of the week I went to a coinstar machine at my

$7-20 a day on lunch while I’m at work depending on what I

local grocery mart. How much did I save? $9.87. I was

feel like eating, the fact that I work in downtown Manhattan

shocked really, I didn’t know it added up so quick. I was

doesn’t help. Let’s make the average to $10.

well on my way to an easy extra $100 a week.

I could save a bundle if I were to make a sandwich for

Savings: $5-10 per week.

about $2-3 from home and bring it to work (buying coldcuts at the local grocery store), along with a $1 softdrink thats

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The #1 Mistake Consumers Make with Credit Cards If you have trouble controlling credit card debt, I have a simple rule for you: If you can’t afford to pay for an item with cash, you can’t afford to pay for it with plastic either. If an emergency forces you to buy something you cannot afford (it happens, I know), make sure you are brutally honest in your assessment of what you really need. If you don’t need something, don’t charge it. I know people who pay 18% interest on Hostess Twinkies. Come on now. You know better. The most common mistake consumers make with credit cards is using them as income supplementation. Instead of using them for emergencies or convenience, they use them as additional salary. So let’s agree right now that credit is not salary. Credit belongs to a lending institution. Credit must be repaid.

How Much Debt is Too Much? Financial gurus suggest that total debt, excluding first mortgage, should not exceed 20% of take-home pay. This includes car payments, home equity loans, second mortgages, credit card debt, and so forth. Upper income consumers may be able to handle higher debt loads due to greater expendable income, while lower income consumers may be wise to carry less. Of course, you probably know if your debt load is too high without whipping

out your calculator. If you honestly don’t know, here is another rule of thumb: If you can’t pay off your credit card balance in full every month, you have too much debt. Credit cards, when used responsibly, help shift the timing or increase the ease of making payments – They do not exist so you can run up debt you cannot pay.

somehow managed to keep her closet stocked with new clothes. And there always seemed to be a new package showing up on her front porch containing things she’d purchased from the Home Shopping Network. She tried to justify these purchases by saying, “John, you know I need to buy new clothes so I can look professional when I’m at the office.” Well, yes, it’s important to appear professional, but she did not need to buy expensive clothing every week.

Why Do You Buy? The buying impulse is so strong in some people that they actually believe credit card dept is their only option. Telling these people they don’t need that extra purse, pair of shoes, or suit is like telling them they don’t need food or water. A close friend of mine used to struggle with spending. She could barely pay her utility bills and was always borrowing money from friends to keep the electricity from getting shut off. Despite her obvious lack of funds, she

Eventually, my friend was forced to declare bankruptcy. I still remember her sitting there on her sofa, surrounded by shoes still in the box and clothes still tagged. She looked at me and said, “John, I don’t think I bought any of this stuff because I needed it. I bought it because I thought it would make me feel good.” “Did it make you feel good?” I asked. She paused, touching her chin. “I thought it did at the time. Now, seeing all this stuff I never used, I guess not.” The emotional high that comes from buying something new is short-lived and cannot compensate for the emotional burden of carrying too much debt.

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Honesty is the Best Policy | Especially When Calculating How Much You Can Afford The excitement grasps you and you feel that you will do anything to own this house. The lack of understanding of personal budgets can make the house of your dreams turn into a nightmare as the bills pile up and you don’t know were to turn. Most people are not aware of the gaps in their knowledge of personal finance and how it can impact their mortgage. The purpose of this article is too fill in the gaps between what we will like and what we can afford. As examples here a two tales of woe: Marie was a first-time home buyer. She began going to open houses on a regular basis and in no time fell in love with a home. Unfortunately, she had to mortgage herself up to her eyeballs to get into it. The excitement of the new house soon wore off. Marie hated her job and her boss but Marie had to tough it out because she had that hefty mortgage to feed every month. She thought she could cut out shopping with the girls, eating out and the clubs on the weekend. It started with a splurge, she would catch up next month and soon her old habits began to reassert themselves. Marie was miserable… Marie was trapped. Inch by inch her credit card payments began to eat into her monthly budget until she started to have to use her cards just to get through the month. Her lack of understanding of her lifestyle requirements placed Marie between a rock and a hard place Our next client was Ken, who was a homeowner who was induced by an advertisement to refinance. He switched to lender who offered a good rate for a 5 year term. Ken however had a second mortgage that needed to be refinanced in a year. The main reason for the second was when Ken purchased the home the lender wouldn’t advance the entire amount of the mortgage. However, the bank manager was sincere in his belief that

in a years time the bank would be able to refinance the entire amount. The recommenda tion of the mortgage broker was to take a one year term at a slightly higher rate. This would give Ken flexibility in refinancing the 1st and 2nd at conventional rates. One year later the loans officer no longer worked at the branch. The termination fees and the rollover of the second mortgage exceeded the loan to value that Ken could get a the branch. The second mortgage lender wanted to move on and the 1st mortgage lender did not want to refinance the balance…what would Ken do. Trust me when I say that Ken and Mary aren't stupid. However, when it came to making important mortgage decisions, Ken and Mary were certainly not smart. Mary didn't understand what amount of mortgage debt she could truly afford. Ken didn't understand how to make refinancing decisions. By Duncan Seward

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Young People And Personal Finance

By Thomas Winn

t is very important to notice that the current generation of young people is getting more and more involved into a lot of things which were either nonexistent or possible in the past. Besides the usual late night drive-in movie or mid-afternoon soccer practice, today’s technologically savvy youths can write a letter, talk to a friend, listen to a playlist of more than a thousand songs, update a social networking personal page, and send a letter of application to a favored university, all at the same time, and all this while squeezing a stress ball with one hand. It obviously shows that for today’s youth, a whole world of opportunities lies within their reach. But with opportunity comes corresponding responsibility. And, more often than not, there is money involved. Now, more than ever, today’s generation of ecoboomers needs to know how to manage their personal finances, wisely and responsibly. That responsibility is emphasized even more for those enrolled in a university. Take the case of an average college student. The day begins at around midnight with either a late night out together with friends with boxes of pizza with a lot of six packs, or a full blown house party with beer kegs and the works. Night wears on, and the next morning reality kicks in with a vengeance. All those wasted money on beef jerky and nacho chips, now nothing but crumbs on the filthy floor. There’s laundry to do. Papers to finish. Food that was stocked up for the week is gone from the previous night’s party. There’s a trip to the nearest store to restock. If there is a car involved, there’s gas to think about (since there are practically no convenience store within reasonable distance from a university; for stores within campus, customers pay more than usual for this extra privilege of ‘convenience’). There remains the day ahead. There’s lunch

and dinner. The overdue rates at the video store. That planned movie date the succeeding night. Not to mention the real responsibilities. Payment for rent electricity, heating and water bills… not to mention tuition fees. And nothing but a limp, twisted wad of money intended to last for the rest of the week. It is but human to succumb to the pressure of spending while there is money to spend it with. Even matured, responsible, emotionally stable adults fall for it, so why should young people be blamed for it? The real problem is the lack of education, both from adults and friends. The spending habits that start early on in life carry through to adulthood. A teenager who spends sixty dollars on a fad shirt now may spend several hundred for another later on in life. These so called little things tend to stack up and become a huge financial crisis. It is better for young people to learn how money does and does not work as soon as they gain their freedom in college, as soon as they get their

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student driver’s license, before they graduate from high school. The earlier, the better! Because in the real world of credit cards and mortgage payments, anyone who does not know how to stretch, squeeze, scrimp and save money for all its worth ends up in financial trouble, to say the least. And it is very disheartening to splurge all day with nothing to answer for it but candy wrappers, pizza boxes, dirty laundry and old magazines. Young people should learn more about taking care of personal finances, while they are still young and ready.

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5 Important Features To Consider When Buying a Home With so many questions to consider when buying a home, a buyer can get muddled in the myriad of details involved. However, the following are five general pointers that a home buyer should examine about a home's physical features as you do your home shopping and compare different properties during the home buying process. 1. House Size In each residential neighborhood, houses will vary in total square footage and the number of rooms; however, they should not be too different. Since the 50's, house size has almost doubled. When determining market value, the homes adjacent to the house you are interested in are the most important. If most of the nearby houses are smaller than your house, they can act as a drag on the price appreciation of your house. Remember if resale value is an important consideration, you should not buy the largest house in the neighborhood. Furthermore, if you choose to buy a small or medium house for the neighborhood, the larger homes will help raise your home's value. 2. The Kitchen Family activity is usually centered around the kitchen, so this room has become the most important room of the house. As a general rule, homes with larger kitchens are more desirable especially if they are equipped with modern appliances. With today's open floor plans, the dining room and breakfast nook should be located adjacent to the kitchen. In newer houses, floor plans usually place the family room close to the kitchen as well.

If there is easy access to the back yard, this is an even greater plus, as there will be occasions for barbecues and outdoor entertaining.

neighborhood, look for a house that is on a lot that is rectangular. Try to stay away from odd shaped lots or oddly situated lots.

3. Bedrooms and Bathrooms

Yard sizes are smaller in modern homes than in older homes, but there should still be a decently sized front and back yard.

Three and four bedroom houses are the most popular among homebuyers, so if you can stick to buying in that range you will have more potential buyers when it comes time to resell. There should always be at least a minimum of two bathrooms in a house, preferably at least two and a half. At the very minimum, look for houses that have one bathroom that is accessible to guests or will be the one shared by the other bedrooms, and one for the master bedroom. 4. Storage - Closets, Garages and Laundry Walk-in closets are extremely desirable for the master bedroom. For the rest of the house, just be sure there is plenty of closet space. Don't forget to check for storage space for linens and towels. Many linen closets are placed in hallways near bathrooms. A garage will add to the resale value and you should always make sure to get at least a two-car garage. Lately, three-car garages have become desirable in some areas of the country. In addition, it should be a short trek between the garage to the kitchen so that hauling groceries in from the car does not become a chore that you will dread. The laundry facilities should be located somewhere convenient on the main floor of the house, but not in a place that it will create an eyesore. 5. Landscaping

Remember that overly landscaped properties will usually be priced at a premium which you may not be able to recover when you sell. You will get your best value if you choose the house that is moderately landscaped or under-landscaped for the area. You can always improve the landscaping during your ownership by improving the lawn and adding bushes and trees. As a general rule, like most things that you will buy in life, houses have their pros and cons. You will be much more satisfied with your purchase if you concentrate on the positive aspects of a home that are on your "most desirable features" checklist or those that will impr ove your resale value. Other less important features can be satisfactorily and creatively addressed in the course of your home ownership.

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Even though most real estate value is usually concentrated in the structure itself, the lot is important, too. Make sure that the lot is as level as possible. Assuming the property is in a typical

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19 Ugly Things You Didn’t Know about Materialism We all know that money can’t buy happiness; everybody says so. And as it so happens, everybody is right; tons of research proves it. But did you realize that a highly materialistic lifestyle could actually damage your mind and body? es, I realize this sounds like a load of leftist propaganda (despite the fact that I’m neither leftist nor a propagandist), so let’s talk about the cold hard facts. The Harmful Impact of Materialism In 2002, Psychologist Tim Kasser published a book called The High Price of Materialism that goes to great lengths to lay out the relationship between unhappiness and materialism. What he found may surprise you.

but the correlation is real nonetheless, and it’s easy to see how materialism does more to perpetuate than remediate the problems in that list. The Unsatisfying Earn and Spend Treadmill Kasser’s research reveals a group of people who believe money, image, status, and beauty will make them happy, so they turn to these extrinsic factors as an addict turns to heroin. And like the addict, the mindless consumer soon discovers that his high was short-lived and ultimately unsatisfying; furthermore, looking for happiness in all the wrong places has kept him from solving his real problems. Research has consistently shown that once you have enough money to buy

Of course, correlation does not imply causation (let’s be clear on that point),

Few people admit (or even realize) that they value designer clothes more than personal integrity, which is why the truest test of materialism lies in lifestyle evaluation: •

Are you a wage-slave, working at a job you hate so you can afford things you don’t need?

Are you more focused on remodeling your kitchen than developing relationships?

Are you more interested in how you’ll look in a bathing suit than in your actual health?

Only you can decide whether you’ve crossed the line, but it’s a line worth watching. Don’t get me wrong – I’m not foolish enough to completely disregard the importance of extrinsic factors, since we’d be hard pressed to function without them. But when the shiny exterior of things becomes the most important part of our lives, we’ve got a big problem.

There is a strong positive correlation between materialism and several mental and physical maladies. In other words, people who pursue money and things at the expense of relationships and other meaningful endeavors are more likely to suffer from these 19 problems: 1. Unhappiness 2. Envy and jealousy 3. Depression 4. Social anxiety 5. Passive-aggressiveness 6. Short attention span 7. Poor impulse control 8. Feelings of being controlled 9. Mistrust of others 10. Tendency to treat others as objects for personal gain 11. Shorter, more conflicted relationships 12. Feelings of social alienation 13. Less desire for equality 14. Less generosity 15. Narcissism 16. Substance abuse 17. Poor self-actualization 18. Less enjoyment of daily activities 19. Poor physical health

person values extrinsic factors (image, status, prestige, beauty, and popularity) more than intrinsic factors (being a good person, behaving authentically, having honor).

Materialism: an Inward Battle, not an Outward one

the basics, an increase in money and material things does not provide an increase in happiness. In other words, if you can afford the trappings of a middle class life, more material and money is usually not the answer, and by chasing it, you actually push yourself farther away from the happiness you so desire.

I want to be clear: I place no blame and pass no judgment. There is nothing inherently evil about advertising, media, consumption, or image-consciousness. I spend so much time talking about consumerism on this Web site not because I hate consumers (or else I’d have to hate myself), but rather because I feel a deep sympathy for all the people in modern countries who have sacrificed meaning and relationships on the alter of long work hours and shiny things. There is more to life than granite countertops and plasma televisions.

What does ‘Materialistic’ Mean?

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According to Kasser, a materialistic

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You can improve your house value and regain your equity! Are you thinking of re-financing or selling your house? If you are, then you are in the hands of a property valuer either through your bank or through the purchaser’s bank. Either way it’s essential that you understand that it is possible to get a better valuation and Equity + can show you how. Equity+ software is more than a multi platform software program that allows shows any homeowner how to improve the value of their home either for re-finance or property sale. Equity+ comes with a number of integrated resources to assist in your re-finance or selling process. On 6th October 2005 the Sydney Morning Herald when talking about the Valuer General reported “One in 10 valuations was out by more than 40 per cent, a pretty handy margin of error”. The developers of the Equity+ package understand how valuers and real estate agents work and have adapted the Equity+ to maximise your house’s valuation potential. When Equity+ is used in conjunction with supporting resources that are supplied, every user will have greater control over regaining their lost Equity. In fact, Equity+ guarantees a better valuation or sale price every time and that could mean many thousands of dollars in your pocket. Think of it. An increase in the sale or valuation price of your house of just 2 or 3% could mean more than $10,000 in you pocket.

of your home for re-sale or refinance. Equity+ could allow you to borrow more and in some cases pay no Lenders Mortgage Insurance - LMI which will save you $1,000's.

Equity+ could mean the difference between getting a loan or missing out.

Looking for

Mortgage Calculators? Click here!

Equity+ could give you reason to celebrate when you improve the value

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THE AUSWEST FINANCIAL SERVICES GROUP !"

LEASING FINANCE FOR - Equipment & Plant, Machinery & Vehicles

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RESIDENTIAL & COMMERCIAL PROPERTY FINANCE

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CONSUMER LENDING - Personal Loans, Car Loans.

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GENERAL INSURANCE — Business, Motor, Professional Indemnity, Public Liability (corporate authorised representative 303068 - AI&F afsl 238433)

The Auswest Financial Services Group is a complete financial services provider. Established in 1998 initially providing general leasing products, Auswest Financial Services has significantly expanded and currently provides a comprehensive array of finance and general insurance products. Our constant growth has warranted the creation of four stand-alone businesses; Auswest Loan & Mortgage Options, Ausquip Rentals & Leasing, Ausure Insurance (Newcastle) & Auswest Town & Country Finance (Aggregations) The Head office for the group is located in New Lambton and operates nationally as the processing centre for Auswest Town & Country Finance (Aggregations), Auswest Mortgage & Loan Options and Ausquip Rentals & Leasing . The Auswest Financial Services Group plays a major role in an unparalleled business model which consists of strategic alliances with a number of Mortgage Broking Groups, Accountancy Firms and Individual Finance Brokers. Auswest Town & Country Finance is the aggregation and agency arm of the Auswest Financial Services Group. Accreditation with Auswest Town & Country Finance allows finance brokers to be directly accredited with Auswest with a choice of two options either as a referring broker or a direct agent of Auswest with full rights to trading names and other benefits. Our business purpose is simple; to provide all current and future clients with all their finance solutions, as well as assisting with their insurance. PHONE 1300 855 646 www.auswestfinance.com.au—email- loans@auswestfinance.com.au

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MAKE TIME FOR A MORTGAGE HEALTH CHECK AHEAD OF RATE RISE The Mortgage and Finance Association of Australia (MFAA) is urging people with home loans to take time out and reassess their budgets ahead of the predicted rate rise next month. “It is an ideal time for all borrowers to do a home-loan health check and consider what impact a possible rate hike will have on their family budget,” said Phil Naylor, CEO of the MFAA.

“We have recently introduced changes to our Code of Practice as a way of acknowledging the importance of flexibility for people struggling with their financial obligations,” said Mr Naylor. Under the new provisions, MFAA members can consider: •

the borrower’s request to vary the payment terms in good faith and within a reasonable time, giving regard to the borrower’s financial circumstances;

suspending any action to recover any

“No one likes increases in their home loan repayments. They can make life uncomfortable, especially in the lead up to the peak spending period of Christmas. “There are a lot of competing priorities pulling at our purse strings at this time of year. And it is important for borrowers to take the time to make a household budget,” said Mr Naylor. “If a person finds that this rate rise overextends their budget we urge them to seek mortgage advice. The worst thing a person struggling to repay their mortgage can do is stick their head in the sand and cross their fingers. “There are options available which an MFAA member can canvass with borrowers – maybe the loan you currently have is no longer suitable to your circumstances,” said Mr Naylor.

payments due under the credit facility and, if it has not listed a default already, not list a credit default in respect of the credit facility against the borrower until the matter is decided; •

encouraging the borrower to make payments the borrower can afford pending the Member informing the borrower of its decision to alter the payment terms.

“It is a competitive home loan market, and we encourage consumers to always consider their borrowing options.

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Get approved today - www.myhomeloanapproval.com.au OASIS: the place to go when the bank says NO!

Struggling to keep your business afloat? Banks won’t help, but Oasis Home Loans will! t’s not much fun when you’re juggling your business expenses AND trying to pay off your mortgage—and the phones are constantly ringing with creditors chasing you for money.

I

Mortgages are usually the largest payment you make each month. Refinancing with the right loan product, you could end up paying less per month ... even reduce the term of your loan!

Money worries like this certainly don’t help your relationships with family or friends! In fact, it’s tempting to just walk away from everything!

Consolidating your debts will also ...

But before you walk ... We know that life can be tough. You can get into tight financial situations through no fault of your own.

• Take some of the pressure off higher interest rates from your personal loans and credit cards; • Give you more flexible finance options, such as using your existing property equity for other purposes.

Hey, we’ve been there too, at times! It’s one reason why we’re so good at what we do. We know how you must feel. At Oasis Home Loans, we’ve helped many people who are in your exact situation! We know how demeaning and embarrassing it can be to ask the big lenders for help—and be knocked back. But you deserve to have your situation untangled. And usually it CAN be, especially with the will to succeed that we bring to tough cases.

Refinancing may be your answer! By refinancing—which means packaging your current repayments from all your debts into one convenient payment—has helped many people.

Ask us NOW!

1800 4 OASIS www.oasishomeloans.com.au

When things look hopeless, a little discussion will often reveal an answer that may be right in front of you! At Oasis Home Loans, we revel in challenges!

*Fees and conditions apply—to approved persons only

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New Mortgage Fraud Industry Emerges as Home Loan Prices Rise In the US and Britain, ordinary

consumption. But now that the going is

people are suffering in their

not so good, many of these people are

prosperity. They have enjoyed more

in real trouble. Some are trapped

apparent wealth - bigger houses,

between two mortgages and need to

more vacations, more dinners out -

sell a house fast. Others simply have

but this is wealth consumed, not

mortgage payments that are too large.

wealth created. In order to afford to spend so much more money, they had to borrow. So their real net wealth actually went down.

Mortgage rates are rising in the United States. And in Britain, last week, the Bank of England raised rates. “Now it REALLY hurts,” shouts a headline in The Daily Mail.

“Lost your pay slip?

Freddie Mac predicts

Call us…”

that house sales this

say signs

year will drop 7% - to

along the

their lowest level since

highways in

2001. And an article in

Britain. We

Barron’s explains why.

had no idea

The REAL mortgage

what this meant. Why wouldn’t people just ask their employer for a copy?

rate is the difference between what a person pays for a mortgage loan and how much the

“Oh no…it’s a big scam,” MoneyWeek

property goes up. If mortgage money

editor Merryn Somerset Webb

costs 6%, and a house goes up 6%, in

enlightened us. “There’s a whole

effect, the real cost of the mortgage is

industry of people who provide

zero.

fraudulent pay slips so that you can get a mortgage to buy a house.”

living in bigger houses, but sending in

as if the mortgage rate was really

higher mortgage payments and more

MINUS 10%. But now, house prices

property taxes, and these larger

aren’t going up…they’re going down -

houses cost more in utilities. When

at least in America.

up this level of extra wealth

Click here to get more information

paid only 5% for mortgage money… while their houses went up 15%. It was

though it would be no trouble to keep

Consider a Cash Flow mortgage

A couple years ago, people might have

And now many of these people are

the going was good, it looked as

Do you need to lower your monthly mortgage payments

For full story go to the Dailly Reckoning

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Making your loan possible! >> My Home Loan Approval <<

Over 170 lenders Free - Instant - Anonymous For more information, click this symbol Mortgage Insider - Issue 3 - Page 20 of 20

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Mortgage Insider Issue 3