3 Great Things to Do with Your Tax Refund!

I’ve got three financially-sound ideas for making the most of your tax refund!

First, I wanted to let you know about an item related to the home mortgage market. FHA upfront mortgage insurance premiums are rising from 1.75% to 2.25%.

That means, for example if you’re buying a $100,000 home, you’ll be paying an extra $500. You have until April 5 to get the contract submitted, so get cracking!

Now about that tax refund and the three financially- sound strategies for using it! Hopefully, you’ll get that average $2,800 refund or even higher!

First, if the recession has depleted your savings, then it’s time to use that tax refund money to rebuild your emergency fund! Remember, you should always have enough money in savings to pay all your bills for six months in the event of an emergency, layoffs, etc.

Now, this is money you may need to get at quickly, so you don't want to take any risks with it. Therefore, you want to stay with highly-stable investments. This includes insured savings accounts, short-term CDs, or high-quality money market funds.

Second, high-interest credit card debt sucks the life out of your financial well-being, so you want to make paying that debt off a very high priority.

Let me make this point clear. Remember that average $2,800 refund I mentioned above? Well, for the sake of an example, let’s assume you have that same amount on a credit card.

And you’re paying 16% interest on a yearly basis. The card requires a minimum payment of 4% of the balance. If you make that minimum payment, do you know how long it will take you to pay off the debt? 105 months!

But if you applied your $2,800 tax refund to the account, it would eliminate the balance right away and save you $1,297 in interest. You could then invest that money to…make more money!

The best way to eliminate high-interest credit card balances is to take your lowest debt and pay it off. Then, take the savings from paying off that debt and apply it to the next smallest debt…and so forth. Psychologically, this is easier to do, and it makes the whole process less painful.

Now, here’s the third thing you can do with your tax refund – invest it! You need to look to the future as well as the past in order to create financial security for you and your family.

The wisest strategy is to create a mix of investments (“diversified portfolio”) so you spread risk around. This usually includes stocks, bonds, or mutual funds. And, if you don’t have a diversified investment portfolio yet, then it’s time to begin one with your tax refund!

In other words, use a wise investing method to plan for the future and build your net worth! Use money to make money! Remember, if you don’t measure and track your income, how can you be successful?

I hope you enjoyed – and will implement – these three methods of using your tax refund wisely.

If you’d like to talk more on this topic or on any topic related to real estate, call me today at 402.301.4500 or contact me at terry@terrywilliams.com.

Tax Credits and Refinancing Options

I want to help you out in two ways with this message – with the home tax credit and refinancing options. But, the only way to do that is by diagnosing the conditions first.

Tax Credit Program – The Deadline’s Drawing Near!

As I’m sure you’re aware, the government has a wonderful program whereby new home buyers can get an $8,000 tax credit and qualified current owners can get a $6,500 tax credit when they purchase another home.Well, if you want to take advantage of this program (and who wouldn’t?), it’s time to “get your rear in gear!”

That’s because you have to have a contract signed by April 30 and close by June 30! So, stop messing around! Get out there and find a house and a realtor!

Is Refinancing Right for You?

Recently, because interest rates are at historic low, I’ve had many people asking, “Terry, is refinancing a good option for me?” Well, I’m like a doctor in some ways. That is, a doctor can’t make a diagnosis without knowing your current and past health record.In the same way, I can’t make a diagnosis without knowing your current and past financial situation. Everybody’s different!

Topics to address in order to make a proper recommendation :

1.Your credit status
2.The amount of the loan
3.Your overall financial position

4.Current interest rate
5.Private mortgage insurance

(Is it an FHA – can we do a streamline, etc.)

All I need is 10 minutes of your time to make the right “diagnosis” for your situation. And, depending on that situation, there can be several options.For example, if I can lower your rate or your term, it may be beneficial for you to incur closing costs.

Or, on the other hand, if the loan amount is the right size, it may be beneficial to do a low-cost or no-cost refinance. That’s right – you can do a low-cost or no-cost refinance if the situation is right. I do them all the time!

What I’m saying is that there’s no “one size fits all” answer! You have to come in so I can give you a proper recommendation.Whatever your mortgage situation, you still need to follow the Four Laws of Debt Free Prosperity I’ve described before:

Law 1: Track your expenditures.
Law 2: Set new target goals.
Law 3: Trim your budget/live within your means.
Law 4: Train yourself to live within your means.

So, what are you waiting for? Because mortgage guidelines are stricter than ever, it’s important for you to come in to see me right now so we can get you the tax credit or refinancing you need!

Call me today at (402) 301-4500 - Dr. Mortgage is ready to diagnose and treat your tax and refinancing problems.

Want to Get a Mortgage Faster? Obey My Four Laws of Debt Free Prosperity!

I want to help you clear the hurdles of obtaining a new mortgage in a market where rules are stricter and it’s more difficult to qualify for the home of your dreams! What if I told you, all you have to do is follow the “laws” laid out in the book, The Four Laws of Debt Free Prosperity by Blaine Harris and Charles Coonradt with Lee Nelson.

These financial laws are great because they’re so simple, direct, proven…and effective!

They’ll help you reduce or eliminate debt, save money, and remove stress from your life because they’ll help you eventually qualify for the mortgage you want and deserve!

All right, enough talk. Let’s get right to those laws so you can start implementing them today!


Law #1: Tracking

This basic law says, “If you don’t know where your income is going, then you have no way of telling how well (or poorly) you’re doing financially.” Simply put, tracking means you need to keep regular records on your expenditures – every single one of them. That way, you can see where money is being wasted – and then eliminate that waste!

Law #2: Targeting

Okay, once you’ve got a handle on your expenses, you can then set targets or goals like “This month, I’m only going to spend $300 on gas…only $500 on groceries, etc.” In other words, your ultimate objective is to live within your means.


Key Point: Goals must always be written out! The “Four Goals…” authors say that “Goals not written down are wishes.”

Also, your goals must be specific, measurable, realistic, and have a specific deadline (“time-sensitive”). This is often called the S.M.A.R.T. system of setting goals, and you can find lots of information about it by googling “SMART goals” on the Internet.

Law #3: Trimming!

Law 3 is common sense advice - live within your means! In other words, live on less than you earn so you can have money to pay off your debts and then save for that mortgage!

Key Point: Always pay yourself first. The authors suggest you do this by using 10% of your income to pay off debts or invest and living on the remaining 90%.

Law #4: Training!

This law is also common sense - train yourself to live within your means! Get financially educated and realize that your money must be invested in assets that generate wealth (real estate, stocks, CDs, etc.) and not wasted on items that simply eat up your money.

So, there you have it – four simple laws that can give you a whole new life financially. By following them, you’ll get that mortgage sooner than you think and, at the same time, eliminate stress and worry from your life.

Call me today at (402) 301-4500 or contact me immediately at terry@terrywilliams.com and we can talk specifics about getting you qualified for that mortgage!