Harnessing the American DreamGetting The Most Value For Your Home Equity

Presented by Robert Ratimorszky

GSF Mortgage

Let’s Examine Your Options Option 1

You don’t have to do anything. I will do my best to give you all the information you need and if you are not ready to make a decision yet, that will be fine.

Option 2You can do this on your own. Every year thousands of homeowners buy/sell/borrow on their own. So when we are complete, if you choose to do this on your own, let me know and I will understand.

Option 3You can work with a traditional Realtor/Lender. If you don’t think my model of doing business is for you, just let me know. I can even refer you to some good agents in my office that might better serve your needs.

Option 4You can work with me.

Are You On The Path To A Secure Financial Future? In 2002, consumer debt in the U.S. surpassed

$1.6 trillion dollars Credit Cards account for almost half of that

debt In 2001, the average household had 10 credit

cards with an average combined balance of $8,367. The average interest rate was 18.9%

If your credit card balance is $8,000 at 18% interest and you make the minimum monthly payment, it will take you 25 years to pay off the debtThere has to be a better way!

Everyone Needs to Borrow Money Since you will need to borrow money

during the course of your life, doesn’t it make sense to borrow it as inexpensively as possible?

Avoid high-interest, non-deductible debt such as credit cards, auto loans, and personal loans. Instead, choose the better way.Get the most value for your Home Equity!

Make your Mortgage Work for You!The Old Way of Thinking:

Get the lowest-rate mortgage Start a bi-weekly mortgage program Send in additional money whenever possible to

reduce the principal balance

This is the Depression Era mindset that has been burned into the American psyche

But is it possible there is a better way?

The New Way of ThinkingThe rules have changed!

Choose the best mortgage, not necessarily the one with the lowest rate.

Subscribe to a bi-weekly mortgage plan only AFTER all other non-tax deductible and high interest rate debts are paid in full

Only send extra money to your mortgage company after you have paid yourself first!

Your goal is to make the smallest payment with the biggest tax-break

“Here are 5 great reasons to carry a big, long mortgage and never pay it off.”

Ric Edelman – New York Times Best Selling author of the New Rules of Money

1. Mortgages don’t lower home valuesYour home appreciates or depreciates whether or not you have a mortgage. In fact, most people discover that, over time, their mortgage balance falls while their home value rises – creating substantial wealth they never expected

2. Your Mortgage is the cheapest money you’ll ever buy

Most people need to borrow money during their lives, so why pay 18% to credit cards when you can borrow at rates of 8% or even less

3. Your mortgage is the best way to lower your taxes

Interest you pay on personal loans, auto loans, and credit loans is not tax deductible, but for most of us, the interest we pay on our mortgage is fully tax-deductible, making the cheapest loan you’ll ever have, even cheaper

4. Get the cash out of the house - while you still canThe main reason people turn to borrowing is because they have little or no income. But if you ever suffer a job loss, major medical, or other financial crisis, you could find yourself unable to get a home loan. That’s because lenders don’t like to lend money if you are in financial difficulty. That’s why you should get a big mortgage now, before you need it – and while you still can.

5. Your mortgage becomes even cheaper over timeDepending on the loan you choose, your payment never rises – but your income likely will. That means today’s mortgage payment becomes increasingly easy to pay!

The Rules of money have changed!

“Here are 5 great reasons to carry a big, long mortgage and never pay it off.”

Ric Edelman – New York Times Best Selling author of the New Rules of Money

A Tale of Two FriendsOur story begins with two friends, both earning $70,000 a year.

They both have $40,000 in savings and are both buying $200,000 homes

Frank Borman“The Old Way” 15 year mortgage at

6.38% APR $40,000 big down

payment $0 left to save $1,383 monthly payment

(56% tax deductible 1st year 33% average)

$1,227 average monthly net after-tax cost

Sends $100 monthly to lender in effort to eliminate mortgage sooner

Neil Armstrong“The New Way” 30 year interest-only

mortgage at 7.42 APR $10,000 small down

payment $30,000 remaining to save $1,175 monthly payment

(100% tax deductible 1st year 64% average)

$799 average monthly net

after-tax cost Adds $100 monthly, plus

$428 saved from lower mortgage payment to savings component earning 8% rate of return

Who Made the Right Choice?

Frank Borman Received $14,216

in tax savings Has $0 in savings

components

Neil Armstrong Received $22,557

in tax savings Has $83,513 in

savings components

Results after 5 years

What If Both Friends Suddenly Lose Their Job?

Frank Borman Has no savings to get

through crisis Can’t get a loan-even

though he has more $74,320 more in equity than his friend because he has no job

Must sell his home or face foreclosure because he can’t make his payments

Now he must sell in a hurry, and at a discount, in addition to paying realtor fees (6-7%)

Neil Armstrong Has $83,513 in savings

to tide him over Doesn’t need a loan Can easily make his

mortgage payments even if he’s unemployed for years

Has no reason to panic since he’s in control-remember…Cash flow is

King!

The Moral of Our Story The “Old Way” can be devastating to your

financial future You should never send extra money

to your mortgage company until you’ve paid yourself first

All of your equity is at risk until your last payment is made

Instead, put that money to work for you!

Once you have all the facts, it’s easy to make the right decision!

The Starpointe Financial Plan

INCREASECASH FLOW

Free up wasted resources Manage expenses

PRESERVE YOUR ESTATE

Help reduce estate taxes Build a family legacy

MANAGEDEBT

Consolidate debt Strive to eliminate debt

CREATEEMERGENCY FUND

Save at least three months’ income

Prepare for emergency expenses

ENSURE PROPER PROTECTION

Protect against loss of income Protect family assets

BUILD LONG-TERM

ASSET ACCUMULATION

Outpace inflation Reduce taxation

Starpointe Mortgage is Illinois’s premier mortgage provider, offering a wide array of

revolutionary concepts to help make your mortgage work for you!

How to Make Your Money Work for You Leverage old money that you are already

spending to create new money that you can save Harness the power of compound interest to work for

you, not against you

Educating and empowering our clients is our focus at

GSF Mortgage

No matter what your approach, our inventory of services can help you

Traditional Mortgage Products Fixed rate loans ARM loans Balloon loans Second mortgages

Interest-only loans Products that allow you to pay just the interest each

month, maximizing your tax benefits and freeing up more money

The Power Option Loan An ARM loan that allows you to choose from four

payment options each month, giving you maximum flexibility and control

Starpointe Mortgage has a diverse selection of mortgage products from some

of the most respected names in the industry including:

What would you do differently if you had the option to lower your monthly mortgage payment?

Would you…

Pay off high interest rate debt? Save more for retirement? Prepare for your children’s education? Build more wealth accumulating assets? Plan a family vacation? Prepare for a financial emergency?

With GSF Mortgagethe choice is yours!

Now that you know how to get better value for your money, let’s see the impact of the money you save

over time with…

The Rule of 72Divide 72 by the interest rate to find out how long it takes your money to double

Age 4% Age 8%

29 $10,000 29 $10,000

47 $20,000 38 $20,000

65 $40,000 47 $40,000

56 $80,000

65 $160,000

$10,000

$50,000

$90,000

$130,000

$170,000

$210,000

29 47 65

If You Are Like Most People, You’re Ready To Take The Next Step

Let’s get started today! Let us review the results, and take

advantage of the mortgage program that best fits your needs

It’s time for you to harness the American Dream and make your money work for you!