This document discusses options for homeowners to leverage their home equity, including working with the presenter Robert Ratimorszky of GSF Mortgage. It outlines four options: doing nothing; handling it independently; working with a traditional realtor/lender; or working with Robert. It then discusses the benefits of refinancing one's mortgage, such as freeing up cash flow and lowering taxes. Two scenarios are presented comparing paying off a mortgage quickly versus investing savings. The document promotes the benefits of working with GSF Mortgage to obtain a mortgage that allows homeowners to maximize their finances.

1. Harnessing the American
Dream
Getting The Most Value
For Your Home Equity
Presented by Robert Ratimorszky
GSF Mortgage

2. 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 2
You 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 3
You 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 4
You can work with me.

3. 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 debt
There has to be a better way!

4. 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!

5. 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?

6. The New Way of Thinking
The 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

7. “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 values
Your 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
1. 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
1. 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

8. 4. Get the cash out of the house - while you still can
The 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 time
Depending 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

9. A Tale of Two Friends
Our 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

10. 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

11. 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!

12. 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!

13. The Starpointe Financial Plan
INCREASE
CASH FLOW
 Free up wasted resources
 Manage expenses
PRESERVE YOUR
ESTATE
 Help reduce estate taxes
 Build a family legacy
MANAGE
DEBT
 Consolidate debt
 Strive to eliminate debt
CREATE
EMERGENCY
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

14. 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

15. 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

16. Starpointe Mortgage has a diverse selection of
mortgage products from some of the most respected
names in the industry including:

17. 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 Mortgage
the choice is yours!

18. 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 72
Divide 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

19. 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!