Reviving Your Dream Blog

Americans Find Themselves Further in Debt - Now What?

Americans Find Themselves Further in Debt - Now What?

CNN’s recent reporting shows Americans once again find themselves further in debt – Now What? As stimulus money has run out, our appetite for debt has not. USA credit card balances rose by $17 billion in just the last quarter and total debt has increased by $1.1 trillion over pre-pandemic 2019 numbers. At the same time, inflation continues to rise and pushes both home and auto prices even higher. So what lessons can we learn from America’s growing debt?
 

The Debt Hole

Let’s take a look at the debt hole that many are in. As an example, suppose you bought a home in Orange County, CA, in January of 2018 for $420,000 with a 20% down payment and a 30-year mortgage at 3.25%. By making your payments for nearly four years, your loan balance would now be hovering around $310,000. Unfortunately. like many Americans, you have accumulated some credit card debt (family sickness, out of work, car repairs, etc.). Let’s suppose you have accumulated $10,175 in credit card debt, leaving you with minimum credit card payments of $204. In this situation, it will still take you 26 years to pay off your home and over 30 years to pay off your credit cards (at an average interest rate of 18% and making only minimum payments). The good news – you can flip the script and not stay on this plan by reorganizing debt.

Reorganizing Debt

It comes as no surprise that most Americans have some level of debt; in California the average household has $10,175 in credit card debt. While we all would love to be debt-free, that is not the situation many are in. Yet, homeowners today may have a fantastic opportunity to put themselves on a path to become debt-free sooner than they could ever imagine. Let’s look at an example of how reorganizing debt could make this happen.

In this same example, the home purchased in 2018 would now have an estimated value of $558,613. By refinancing into a new 30-year mortgage at 2.99% and taking out enough money to pay off your credit card, you could save yourself an estimated $298 a month in payments (credit card and mortgage payments). Imagine what you could do with that savings? However, one of the most effective, debt reduction options would be to use the savings to pay off your home faster instead of paying the credit card companies. Begin by taking all the monthly savings and paying down the principal balance of your home! Making this one change, which doesn’t even change your monthly budget, would pay off your home in 22 years and four months. This pays off your home nearly four years sooner than the original loan you took out when you bought your home and increase your net worth by $63,291. Click here for details.

Debt Reorganization Expertise

As you can see, there are many factors to consider when reorganizing debt. Refinancing is one option and it would be easy to become overwhelmed during the debt reorganization expertise. The GOOD NEWS – you don’t need to tackle this alone. Let Revival Lending, a Certified Mortgage Advisor, help you! Your dreams are not one-size-fits-all; your loan shouldn’t be either.

Revival Lending, Certified Mortgage Advisors

At Revival Lending, we are Certified Mortgage Advisors. We will work to design a customized loan to facilitate your goals.  We want to earn your business over a lifetime and not just through a one-time transaction. We promise to take the time to truly understand your goals and help you map out a plan to use your mortgage and home to reach them.  Call or email us to schedule a complimentary mortgage review today. You will not be disappointed!

Zillow Exiting Its Home-Flipping Division

Zillow Exiting Its Home-Flipping Division

Last week, the home mortgage industry was shocked with the announcement “Zillow Exiting Its Home-Flipping Division“. This decision resulted in a reduction of 25% of Zillow’s staff. This is a sudden about-face exit from the housing market from a company that launched this division in 2017. Yet, as unexpected as this announcement may have been, the reasons behind the departure are even more curious.
 
In mid-October, the company initially reported a slowdown of their purchasing as they faced a deluge of backlogged inventory1. Then, Zillow’s quarterly earnings last week revealed that their exit from the business would result in a total write-down of more than $540 million. A substantial contributing factor to this write-down was their realization that they bought homes during the last quarter for home prices much higher than it now believes it can sell them. Understandably, this raised many questions about the reliability of Zillow’s home price estimates. As Bloomberg’s Patrick Clark wrote, in his recent reporting, “The episode is a cautionary tale for what happens when an overconfident company uses (home price estimate) algorithms to supersize an old-fashioned business”2.

Are Online Home Price Estimators Unreliable?

Does this mean online home price tools and estimators of home values (like Zillow) are unreliable? The answer is NO! While studies showed Zillow’s early estimates were off as much as 14%, more recent studies show a very respectable 2% error rate as the company matured. Ultimately, Zillow’s biggest mistake (and the cautionary tale for us) is how they used or did not use their data. As the housing market heated up early this year, Zillow found themselves not purchasing as many homes as their executive team “felt was necessary to make iBuying profitable”2. Instead of listening to their data, they tweaked their algorithm to be more aggressive; a lot more aggressive. Suddenly, Zillow began buying house after house, acquiring more than 10,000 homes in the third quarter. They purchased more homes than they could process, resell and paid more for the homes than they were worth.

What Can We Learn From Zillow's Missteps?

So what can we learn from Zillow’s missteps? 

  • First, much of the online data available on home values is good but never trust just one source and don’t assume the highest valuation number you see represents your home’s worth.
  • Second, don’t make any decisions regarding your home based on the highest estimate found online.
  • Third, seek outside sources to validate your assumptions. While we can learn much from online resources, we should always talk to professionals who work with this data daily. I can learn a lot from WebMD, but I still want my doctor to give me my diagnosis.

So what is your home worth and what options do you have with potential increased equity? The GOOD NEWS – you don’t need to try and answer these questions by yourself.

Revival Lending – Certified Mortgage Advisors

At Revival Lending, we are Certified Mortgage Advisors. We will work to design a customized loan to facilitate your goals. At times, that means advising our clients not to refinance because sometimes the best mortgage you can get is the one you already have. We want to earn your business over a lifetime and not just through a one-time transaction. Therefore, we promise to take the time to truly understand your goals and help you map out a plan to use your mortgage and home to reach them. Set up an appointment with us today. I promise you will not be disappointed. Call 714-257-5284 or email us to schedule a complimentary mortgage review today.

 
Sometimes the Best Mortgage Is the One You Already Have

Sometimes the Best Mortgage Is the One You Already Have

Mortgage rates are low and you are ready to refinance. What if I told you that sometimes the best mortgage you can get is the one you already have? If you are not asking the right questions and working with a certified mortgage advisor, it could be costing you a lot of money. 
 

Consider Your Family’s Life Plans Prior to Refinancing

While refinancing may be the perfect solution, you need to take the time to consider your family’s life plans before refinancing your mortgage loan. Here are several questions to ask yourself:
 
  1. Do you see yourself moving within the next three years (relocation due to job/career, moving to be closer to family, or downsizing)?
  2. Are you looking to make any home improvements (kitchen or bathroom remodels, adding more space, or re-landscaping your yard)?
  3. Do you see a future need to access equity from your home (college/education tuition, funding a new business opportunity, or taking care of aging parents)?
  4. Are there any foreseeable significant changes in your income level and/or financial obligations? (sizable raise/promotion, retirement, or large purchases like a car, second home, new business)
As you can see, there are many factors to consider when refinancing besides just getting a new lower rate. It is easy to get overwhelmed. The GOOD NEWS- you don’t need to tackle this alone. Your dreams are not one-size-fits-all, your loan shouldn’t be either.

Revival Lending – Certified Mortgage Advisors

At Revival Lending, we are certified mortgage advisors (CFAs). We will work to design a customized loan to facilitate your goals. At times, that means advising our clients not to refinance, because sometimes the best mortgage you can get is the one you already have. We think through all the options with your best interest at heart. Revival Lending wants to earn your business over a lifetime and not just through a one-time transaction. Our CFAs take the time to truly understand your goals, and help you map out a plan to reach them. Call or email us to schedule a complimentary mortgage review today. I promise you will not be disappointed.

Call or DM to schedule a complimentary mortgage review today. I promise you will not be disappointed.
(714) 257-5284

Home Improvements That Pay

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Energy-Efficient Windows

Many home renovations will increase your resale value but home improvements that pay you now are a smart investment. Energy-efficient windows pay for themselves now and when you’re ready to sell!

Older homes typically have windows that are of a single glass pane construction that waste energy and money. They are not energy-efficient at all and are simply barriers to rain and bugs. When you sell, expect buyers to offer less and create negotiation strategies considering they will want to replace them.

You see, today, manufacturers are making double- and triple-pane vinyl windows that insulate the home from wind, rain, cold, heat, and even outside noise. Additional benefits to multi-pane windows include a reduction of dust and allergens, added security for your home, ease of maintenance, and increased curb appeal. Now, let’s talk about the financial impact.

EnergyStar-Rated Windows

Replacing old windows with EnergyStar-rated windows will save money on heating & air conditioning bills. These windows also insulate so efficiently; additionally, green energy tax credits can apply! Next, new windows provide one of the higher rates of returns for a home improvement investment. In fact, a recent report entitled “Remodeling 2020 Cost vs. Value Report”* (www.costvsvalue.com) shows homeowners can expect a 73% return on their project investment when they sell their home.

Home Improvements That Pay for Themselves

While the initial cost for new windows can be high, it is one of those home improvements that pay for themselves in lower energy costs, and they will surely increase the value of your home when you sell!

Need a referral? Give us a call!

*© 2019 Hanley Wood, LLC. Complete data from the Remodeling 2019 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Revival Lending is here for you! As a mortgage broker, we have access to hundreds of lenders who offer a variety of programs and certified services for every need:

• Second Mortgages
• Certified Veteran Loan Specialists
• Commercial Loans
Take the next step—->
Call or Email for a free consultation!
• Complete our no-obligation application online
• Tag friends who need a home loan or those who could improve their financial position with refinancing.
• FOLLOW: @revival_lending for market updates and tips on achieving financial freedom through homeownership.
Our Commitment

Our Commitment

Buying a Home

Our commitment to you is to support your decision to buy a home. This commitment you’ve made is an incredible accomplishment; a sacred act. It’s the purchase of your sanctuary, the escape from the world‘s turmoil and noise. A space that fosters cherished memories with family and friends. It’s no small act…

The Home Loan Process

The process of obtaining a home loan can be overwhelming—but it doesn’t need to be. At Revival Lending we‘ll  guide you from beginning to end, demystifying the process throughout. We eliminate surprises and offer full disclosure. We pride ourselves with being in constant communication with our home buyers and realtors, proactively updating and educating you throughout the loan process. We value integrity and will always have your best interests at heart. 

We don’t just get you into any loan, together we’ll:

1. Discuss and assess your unique situation

2. Find opportunities to improve your financial circumstances

3. Identify long term plans, goals and dreams, and

4. Work to design a customized loan option that fits all your needs and sets you up for success!

The way we work is not a standard in the industry, excellence is not common. At Revival Lending we help you experience revival in your finances and your life.

Welcome to Revival Lending! 

Your dreams are not one-size-fits-all, your loan shouldn't be either!
Home Refinance icon - Mortgage Loans For Every Need - Revival Lending
Tyson Hilton
Owner
Was It Something I Said?

Was It Something I Said?

Did you ever ask yourself, “Was it something I said?” when you thought you were so clear? Have you ever felt your words were falling on deaf ears or realized, mid-conversation, that you lost people’s full attention? Welcome to the world of miscommunication and the power of words.

 

The Power of Words

 
A book in the Bible, Proverbs 18:21, shares, “The tongue has the power of life and death.” Words can build up or tear down. They can help you win business or be a catalyst for losing it.
 
Words can mean completely different things to different people. Even the inflection in your voice can win people over or push them away. That’s the priority of the phrase, “It’s not about what you say, it’s about how you say it.” If you’re not acutely aware of how people are affected by words, you will experience communication disconnects and miss potential business opportunities.
 
EXAMPLE: Nearly four years ago, my wife and I kept sensing a nagging angst and tension. We felt a change coming. Through the years, we’ve learned to recognize these feelings. For us, those words never held negative connotations. Yet, in sharing, we realized people’s perceptions were different. Some misinterpreted our experience altogether and made negative assumptions based on their perspective.

 

Words Are Defined by Personal Experience

 
An often overlooked fact is that someone’s perception of what you’re communicating will always override what you’re saying. In other words, they listen based on their personal experiences, filters, and perceptions. So, in our use of angst and tension, some assumed it represented something negative and shared concerns from a place of fear. We realized we had to qualify our words and clarify our vision. People can have altogether different definitions for the words you use. For us, angst and tension, are indicators for potential positive change and growth. They wake us up and cause us to be a little more intentional as we navigate certain seasons. It’s critical to qualify your communication and make sure people understand exactly what you want them to hear.

 

The Art and Skill of Communication

 
There is an art and skill to communication. The skill is understanding how words impact people uniquely. Having a command of the English language and etymology (the study of words) is key, but more importantly, the art of communication must also be more personal. It must begin with self-awareness, Emotional Intelligence (EQ), mindful insight about the words you choose, the tone you use, and how they are received. Remember, empathy should be foundational in all of your communication.
 
This content fills a whole communication course (one our team teaches), but here are a few strategies you can implement now to help avoid miscommunication later:
 
1. Ask people what they mean by the words they choose. They may have a different definition. Consider asking, “Tell me about that word. What do you mean by it? How would you define it?”
 
2. Before you lose your listener’s attention, periodically ask, “Does this make sense? Or Am I making sense?” Some people share away without a break, not realizing the listener needs clarification. Before you lose your listener, engage with them. Confirm they’re tracking with you.
 
3. Ask them to rephrase what you’re saying. Interestingly, some will misinterpret your point entirely, especially in touchy or heated conversations. Whether in a business dialog, or communication with your mate, make sure sensitive conversations are delivered and received with the most positive and kind intentions.
 
4. People are more visual than audible. In a business meeting, consider creating a visual guide or graph of the communication flow.
 
I hope this brief discussion on the power of words is something that will benefit you immediately and impact your business in the most positive ways!
___________________________
 
Revival Lending is here for you! As a mortgage broker, we have access to hundreds of lenders who offer a variety of programs and certified services for every need:
• Second Mortgages
• Certified Veteran Loan Specialists
• Commercial Loans
Take the next step—->
Call or Email for a free consultation!
• (657) 464-3101
• Complete our no-obligation application online
• Tag friends who need a home loan or those who could improve their financial position with refinancing.
• FOLLOW: @revival_lending for market updates and tips on achieving financial freedom through homeownership.