Part 4: Shopping for Interest Rates

To review Part 3: First Step, Upgrading Your Credit, click on the link below.
http://brokermakesyoubroker.blogspot.com/2015/03/part-3-first-step-upgrading-your-credit.html


We are going to talk about "shopping for Interest rates." Some of you are thinking, "Darnell has really gone off the cliff. No one shops for interest rates." That is somewhat correct. Many people go to the bank or go to other lending institutions and take what they give you and the customer thinks that they are doing them a favor.

I know one person that just graduated from high school. This person got a flier from a loan shark company that wanted to give her a thousand dollar loan. She fell for the loan shark deal. She had a current model car and put it up for collateral for a $1,000 loan at 26% interest. The car was a graduation gift. The person had no job to pay back the money.

So what do you think the loan shark company was going to do? The loan sharks knew that this young teenager could not pay the loan and they were in a position to take and sell the $18,000 car getting the principle of the loan with back interest and penalties.   They were thinking about making money by selling this teenager's new car while the teenager thought that she was getting free money.

The story ends with someone repossessing the new car, the person's new credit report starting out bad. She had no car and the $1,000 was spent on nonsense. All the teenager got out of it was a short good time and bad credit for a long time. But she learned that people are "no damn good" and will take advantage of you.  

Credit runs every ones life but they do not learn this in school. Your public schools work for businesses in your community. They do not work for the community. People learn about finance from people like me!

I am not bragging. I am stating a fact.

If you want to see this video about shopping for interest rates, click on the link or the picture below.

       https://www.youtube.com/watch?v=6cfYLceJ1TE

Tina Mitchell on Money Chat: Moving Mortgage Rates and Best Way to Shop Interest Rates  

If you want to know more about what Tina Mitchell has to say, look her up on YouTube!

https://www.youtube.com/watch?v=nY2ah4fIUfE

 

Getting the Best Interest Rate on Your Mortgage Home Loan

Ah, Jason Wheeler is telling you one of my secrets. In 2006, I was coming out of a time when I had no job for 2 years. I had very little money. In 2013, I had purchased a $224,000 home that the previous buyer bought for $325,000. I bought it for $165,000. In 2015, I borrowed a large amount of money to create a new large bond portfolio.    

Here are some additional tips to remember;

1. Never go to the bank and ask for a loan. All they will do is tell you to fill out an application and they will get back to you.

2. Always contact a bank and asks for their loan qualification procedure. Some banks just want to find out how much you make so they can figure out if you can pay. While other banks want 2 years of Income Tax Returns, Insurances on the Property, 2 pay check stubs, as well as other documents.

3. Some banks will give you 85% of the equity in a property while other will only give 65% of the equity in your property.

4. Do not apply for a second mortgage with several banks. If you know the banks procedure for applying for a loan, the better your chances of getting a first or second mortgage. To many inquiries on your credit report will hurt your credit score. That threatens your ability to get the best interest rates.     

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Answer these questions:

1. I do not care what interest rate I am getting. I just want the cash! Is this a good idea? (Yes or No)

2. All you have to do is go to any bank and ask for a loan. They will do you a favor and give it to you. (True or False)

3. If you qualify, the bank will give you 100% of the equity from your home. (True or False)

4. If you apply for a mortgage with at least 35 banks, you will have a better chance of getting your money. (True or False)

5. Most high schools and colleges teach students about the cost of money. (True or False)


Here are the answers

1. No

2. False

3. False

4. False

5. False


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My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets
• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.