Meeting January 21, 2010 – Speaker Rich Postlethwait – Pillar Financial

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January 23, 2010

 Well, after about a month off I have finally gotten back in the swing of things. We had a few weeks off for the holidays and then the last two weeks I have been unable to attend due to other business obligations. But it was good to be back and see everyone. We look to be off to a great year so far.

BILL’S BRIEFS

The Art of Referrals – How to Receive Good Referrals

Our educational coordinator provided us with a few good bullet point things to remember to make sure that you receive good referrals.

1. Must be respected as a business professional
2. You and your business must be well understood
3. You must be liked as a person

SPEAKER

Pillar Financial, LLC
Rich Postlethwait
415 Creekside Dr #130
Palatine, IL 60074
Visit Website     Email
847-359-1700 ext. 110		   With 20 years of experience in the mortgage business, I can offer sound advise when you are thinking about purchasing or refinancing your home.  As a mortgage broker, I don’t work for one particular bank …I work for you.  My job is to find you the best rate and closing cost combination with one of the 25 banks I work with every day.  Most times, the rate I can offer is lower than the rate you could get if you went directly to the bank and the best part is that you don’t pay for my services …I get paid by the bank.

 

Today we heard from Rich Postelhwait from Pillar Financial and he spoke to today about the renting versus buying. And remember for first time home buyers the government will give you $8000 if you are under contract by April 30, 2010 and you close by June 30, 2010.

Below is a chart showing the difference between a 1500 a month rent against a 250,000 home with a 3.5% down down payment.

   

Rent It

  

Buy It
    $1,500 per month   $250,000 Purchase Price
        96.5% Financing
    2.00% increase per year   2.00% increase per year
    Monthly Annual Cumm   Property Loan  
Years   Rent Rent Rent   Value Balance Equity
                 
1   1,500 18,000 18,000   255,000 242,165 12,835
2   1,530 18,360 36,360   260,100 238,672 21,428
3   1,561 18,727 55,087   265,302 234,982 30,320
4   1,592 19,102 74,189   270,608 231,083 39,525
5   1,624 19,484 93,673   276,020 226,965 49,055
                 
6   1,656 19,873 113,546   281,541 222,614 58,926
7   1,689 20,271 133,817   287,171 218,018 69,153
8   1,723 20,676 154,493   292,915 213,163 79,752
9   1,757 21,090 175,583   298,773 208,033 90,740
10   1,793 21,512 197,095   304,749 202,615 102,134
                 
11   1,828 21,942 219,037   310,844 196,891 113,953
12   1,865 22,381 241,418   317,060 190,844 126,217
13   1,902 22,828 264,246   323,402 184,455 138,946
14   1,940 23,285 287,531   329,870 177,707 152,163
15   1,979 23,751 311,282   336,467 170,578 165,889

 

This chart breaks down your monthly mortgage payment and shows the tax benefits which lower your monthly payment to just about the exact same as renting.

Payments

  

Tax Benefits
FHA 30 Year Fixed @ 5.50%              
3.5% down payment              
  2.00% 0.25% 0.0055                
Monthly Monthly Monthly Monthly Total Mntly   Interest Taxes Annual Tax 25% Tax Mnthly Tax After Tax
P&I Taxes Insurance PMI Payment   Paid Paid Deduction Bracket Savings Payment
                       
1,394 425 53 111 1,929   13,501 5,100 18,601 4,650 388 1,542
1,394 434 54 111 1,938   13,315 5,202 18,517 4,629 386 1,552
1,394 442 55 111 1,947   13,118 5,306 18,424 4,606 384 1,563
1,394 451 56 111 1,955   12,910 5,412 18,323 4,581 382 1,574
1,394 460 58 111 1,964   12,692 5,520 18,212 4,553 379 1,585
                       
1,394 469 59 111 1,974   12,461 5,631 18,091 4,523 377 1,597
1,394 479 60 111 1,983   12,217 5,743 17,961 4,490 374 1,609
1,394 488 61 111 1,993   11,960 5,858 17,818 4,455 371 1,621
1,394 498 62 111 2,002   11,689 5,975 17,664 4,416 368 1,634
1,394 508 63 111 2,012   11,403 6,095 17,498 4,374 365 1,648
                       
1,394 518 65 0 1,912   11,101 6,217 17,318 4,330 361 1,551
1,394 528 66 0 1,922   10,783 6,341 17,124 4,281 357 1,565
1,394 539 67 0 1,933   10,447 6,468 16,915 4,229 352 1,580
1,394 550 69 0 1,944   10,093 6,597 16,690 4,172 348 1,596
1,394 561 70 0 1,955   9,719 6,729 16,448 4,112 343 1,612

 

If you are currently renting and looking to finance your American Dream give Rich Postlehwait at Pillar Financial a call today.

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