Latest Ethics Articles

Integrity: Intention or Action?

Tue, 22 Dec 2009 23:04:17 -0500

All of us INTEND to have integrity.

When you ask anyone, "Do you have integrity?" they all say and feel that they do. Don't you? Integrity is key to character; we all want to have integrity. We all want to have character. But we all know of people and situations where their integrity doesn't match their intention.

* The grocery store shopper who knows he or she has 22 items and still goes through the express checkout.

* The parent who lies about a child's age to buy a reduced priced ticket.

* The business person who believes he is honest yet tweaks the books to enhance his company's position

The difference between wanting to have integrity and having integrity is action. Your actions are your character. This is what people see. This is what children learn. This is what employers value. Your actions validate your integrity.

Why do so many peoples' intentions and actions differ? There are probably as many answers as there are people. It may have to do with our fast paced society, economics pressures, disdain for "the rules," whether or not they think they'll be caught, personal exemption or just laziness. Regardless, we witness these mismatches of integrity and intention almost daily.

To have integrity, your words, beliefs about yourself and your actions must match.

If you believe that you are honest, then be honest. If you believe that you are law abiding, then be law abiding If you believe that you are trustworthy, then be trustworthy.

Your actions will document your integrity.

* Don't use the handicapped space when you are not handicapped.
* Be loyal to your spouse in thought word and deed.
* Keep a confidence.

Be who you want to be, don't just think who you want to be.. And sometimes only you know whether you've violated your intentions. It doesn't matter who is watching; it matters that you know. It matters that your actions match your intentions.

Congruity is another way to describe this. What you think, what you say, what you do, and who you are work best when they are all aligned. When they are not, not only will those around you be confused, but the incongruity can create your own internal stress. The easiest, most effective route is congruity...

So, Don't "intend to," the next time. Live your intentions. Every day. This is what will differentiate you from others. This is what will set you apart.

Infusing Ethics Into Your Organization

Mon, 21 Dec 2009 22:47:32 -0500

There has been so much written about the need for ethics and ethical behaviors in organizations, and most people, when approached with the subject show body language that says "I know it - I'd do it - don't talk to me about it."

Yet, we continue to have daily ethical dilemmas that threaten our personal and our business success. Sometimes the ethical challenges come from the top of the organization through pressures on profits, sometimes they come from the middle levels of an organization by middle managers who don't really get the whole integrity thing; sometimes it comes with individuals who are just trying to keep their jobs.

The question is, what is the best way to infuse ethical behavior at all levels of your business?

There are generally three ways that organizations deal with the promotion of business ethics:
1. passive ignorance
2. compliance based
3. values based

The businesses who take the passive approach of essentially ignoring the promotion of ethical behavior run the risk of each person adopting his or her own standards. I call it benign neglect. Unfortunately, there are still many companies out there who take this approach. The leadership just "hopes" that people will do the right thing.

The second approach is a compliance based approach. I liken this to the leadership essentially telling the constituents what they must do. They must be ethical. They must have the integrity. They must not do anything in illegal. This approach is more a fear based approach - meaning that people will behave ethically to avoid discipline or retribution. People are punished for doing the wrong thing. While this approach is better than passive ignorance, it is akin to telling someone what to do but not why. It is very difficult for any organization to develop rules for every possible potential ethical dilemma. This is where the compliance based ethical promotion can fail.

The final approach, and the one that really works, it is values based. This means that everyone in the organization, from top to bottom, understands the ethical values of the company. They know why the ethical values were established, they know what they are, and what they mean. These values guide each person in the organization, and give them a roadmap that enables the handling of ethical dilemmas. It is a motivational approach to infusing ethical behavior. Ethical behavior is rewarded, and noticed. People support each other in their ethical behaviors. In my view, this is the best way to infuse ethics into any organization.

So, how do we infuse a values based ethical culture?

I hope you don't groan when I suggest this, but it is very important to articulate and establish the values for the company, in written form. Yes, written. How you do this is up to you; sometimes the leadership team develops these, sometimes an employee group puts them together with feedback from the an entire organization, sometimes there is a group process that feeds upward within the organization. What matters is that you have your values articulated and available for all.

Just writing them down or posting them does not infuse them into your culture. It is important that values, whether they are personal or organizational, are lived. When the leaders of the organization model the behavior is each and every day, people will learn by watching. When managers and supervisors share values regularly at staff meetings, the goal remains present. Periodic case studies can go a long way to helping those in the organization embrace the values that bring the right decisions. Use your creativity to keep your values present...

Having each person live the values of the organization will go a long way in infusing ethical behavior, top-down, inside out. Ethics should not be a process or a program. Ethical orientation works best when it is a culture. That is why living your ethical values, every day, works.

So, how about your organization? How valued is ethical behavior? Does each person and brace and live your values? Do you?

Low Interest Home Loans

Tue, 08 Jul 2008 00:00:00 -0400

A part of what makes home loans either very expensive or more affordable is the interest rate that you secure. It is in your best interest to secure the lowest interest rate that you can, but not without understanding the rate and whether it will change in the future. You have probably heard about all of the problems with subprime loans and you don’t want to fall into a trap where you cannot pay your house payment. Many people have struggled with this because they didn’t understand their loan, but you can secure a loan that will give you a low interest rate that will allow you to keep your home loan as affordable as possible.

Home Loans with Low Interest

The best way that you can secure low interest home loans is to shop around and find the type of loan that is the best for you. There are many different types of loans out there for you to consider and as you shop around you will find that different loans have different interest rates and there are some variables that will affect these numbers. Be sure that you have all of the information about the loan, including whether the loan is fixed or will adjust over time. Knowing about all of the different loan programs that are out there and how each of them works will help you to make the best selection for you.

Another way to get home loans with lower interest rates is to make sure that your credit is in good shape before you apply. Your FICO score can help you secure loans that are much more affordable because most lenders are willing to extend better interest rates to those that have a track record of paying off their debts of any variety. When you have a good credit score you show that you are worthy of lending services and therefore the lender is risking less to lend to you, which can substantially lower your interest rate.

Another way to get lower interest rates on home loans is by making a substantial down payment. If you put 20% of the purchase price down on the home you are going to be able to get a better interest rate than if you only put five percent of the purchase price down. The reason for this is that the lender feels more secure with lending to you because you have proven that you are serious about paying off the home as indicated because you have risked the 20% of the purchase price. This is a good thing to try when you don’t have the best credit but would like a lower interest rate.

Many people get carried away with getting a too good to be true interest rate and they choose an ARM or subprime loan and assume that they got the best deal. The fact of the matter is that you need to understand how this type of loan works and you need to consider whether the loan will continue to be affordable to you even after rate adjustments. Many people simply look at the great introductory rate and they assume that their loan will always be this affordable, but that is not necessarily true. Don’t choose a loan blindly just because of the interest rate, instead do your research.

Low Income Home Loans

Tue, 08 Jul 2008 00:00:00 -0400

There are a lot of people out there who assume because they do not make hundreds of thousands of dollars a year that they will never own a home. The fact of the manner is that there are many low income home loans that you can choose from to help you get into a home, even if you don’t make six figures a year! This is good news for a growing percentage of the population who would like to own a home but doesn’t have the funds necessary to make a sizable down payment or even pay expensive closing costs.

Buying a Home on Limited Funds

Home ownership is something that so many people dream of, but a lot of people assume that this simply is not something in their future. It can be difficult to qualify for conventional loans when you do not meet certain income standards, FICO score requirements, or you cannot come up with a sizable down payment. The great thing is that there are some low income home loans that will allow you to get into that home that you have been dreaming of at a price that you can afford.

One way that you may be able to get into a home on your income is by applying for an FHA loan. These loans date back to the 1930’s during the time of the Great Depression. These home loans were intended for those that did not have a lot of cash on hand because no one had a lot of money during The Depression. When you apply for this type of loan you will not need to meet any FICO requirements; you’ll only need to have at least a limited income and a qualifying debt to income ratio. You would be surprised how simple these loans are to qualify for, even when you don’t make a lot of money.

FHA home loans are also a great option because you can get into a new home for as little as 0-5% down on the home. What this means is that instead of having to come up with 15-20% of the purchase price of the loan, you will be able to move in for considerably less. In addition, there are many FHA based programs that will also help you come up with any money that is needed for closing costs or a down payment. This can help you make home ownership much more affordable in the short term as well as in the long term.

The government offers all of these low income plans because they know that if you work hard that home ownership should be an option. Be sure to look into these options before you simply assume that you cannot ever buy. You may be surprised to find that you are a great candidate for one of these programs.

Bridge Home Loans

Tue, 08 Jul 2008 00:00:00 -0400

Have you ever heard of bridge home loans? This is a type of loan that comes in very handy for those that have already purchased a home in the past, but are looking for a new one when they haven’t yet sold their current home. This is a very convenient type of loan program and many people have been able to take advantage of it over the years.

The Bridge Loan Explained

Bridge home loans are for one specific type of consumer and that is the consumer who has found a home that they would like to buy but they have their home on the market and they have not sold it yet. This type of loan can be hard to qualify for because you can only be approved if you have quite a bit of equity in the home that you are trying to sell. If you have built sizable equity in the home, the bridge loan will allow you to take the equity in the home for the down payment on the new home.

For many people this is a great way to use their current home to help buy their new home. The problem that a lot of people have with these loans is that the interest rates can be sky high, the points are very high, and there are usually many costs that are associated with these home loans. While all this is true, there are many people that find that this is the best way for them to buy a new home while they still own their other one.

In most cases, the buyer’s home must be on the market for the individual to qualify for this type of loan. These home loans are not long term, in fact they are usually just six to 12 months in length and when the home sells the bridge loan must be repaid right away. While many people consider these loans to be too expensive, they are a great option for those that would appreciate no monthly payment during the six to 12 months that you have it. Instead of making monthly payments, you will simply pay it all off when your home sells.

If you’re wondering what the interest rate would be on a bridge home loan, you can get an idea by considering the current prime interest rate and then adding additional margin to this rate. Usually the lender will add two or three percent, so if the current rate was 5% you would end up with 8%. This is something that turns a lot of people off, but give this type of loan some consideration because it has worked out well for a lot of people. If you decide that this is too expensive for you, why not consider using 401k funds, stocks, bonds, or an insurance policy that can be borrowed against to make your down payment on the home.

Many people assume that this type of loan is not for them, but that isn’t the case. You simply need to make sure that you understand the implications of such a loan and that you research all of your other options, as this is one of the more expensive ways to buy a new home, but sometimes it is the only option or the most convenient option depending on your situation.

Closing Costs and Home Loans

Tue, 08 Jul 2008 00:00:00 -0400

When you buy your home you may hear your realtor and your mortgage lender both refer to closing costs, and you may be wondering exactly what these costs are and what they have to do with home loans. It is important to learn about closing costs ahead of time so you are not shocked when you are expected to come to the “closing” of the loan with funds in hand. Luckily, lenders will give you a Good Faith Estimate with the closing costs ahead of time so you will know about what they will be.

Understanding Your Closing Costs

When you obtain home loans, there are certain fees that are associated with them and all that goes into borrowing money from another source. There are many costs associated with your loan that you may not even be aware of, until you get the bill, that is. When you get the bill you may be surprised at some of the costs associated with things, but try to take it all in stride and remember that these are one time fees.

Some of the closing costs that you may be charged for when it comes to home loans include a loan origination fee, or points. The loan origination fee is basically a point system where one point is equal to one percent of the mortgage loan and the more points you pay the lower your interest rate will be. If you have an FHA loan you will be paying one point, and anything in addition to this is known as discount points.

In addition, you may be paying an appraisal fee, an inspection fee, a tax service fee, and even flood certification and monitoring fees. As you can see, there are a lot of different charges that may go into the closing costs on home loans and you will find that these vary widely depending on the lender and where you live.

Other fees that you may have to pay as a part of your closing costs for home loans include a document preparation fee, underwriting fee, and an administration fee. In addition you may have appraisal, wire transfer, and warehousing fees. All of these fees will be detailed for you so you should look them over carefully and if you aren’t sure what something is, you should feel free to ask about it.

Many people are floored to find out exactly how much their closings costs are, and they can and will add up quickly. With many types of loans today, there are many limits as to how much can be charged, but despite this your closing costs for loans will probably range well into the thousands of dollars. You should definitely consider your Good Faith Estimate to be as accurate as possible, but it is always safer to assume that the costs will be more rather than less. Planning ahead for these costs will allow you to budget for them as well as to avoid the anger or frustration that may come from paying more money than you had planned just to get into your home. Ask your lender about these costs ahead of time and how you may be able to reduce them, as there are many methods that are used to reduce the closing costs of most loans.

Mortgage Refinance During Hard Times

Tue, 08 Jul 2008 00:00:00 -0400

The term recession has been thrown around a lot lately and it seems every time we turn on the television we are hearing about people who are struggling to keep their jobs or their homes, and about shortages of food. This is a time when many people are looking at all of the things that they own and seeing how they can save and mortgage refinance seems like a great option because it can help you substantially reduce your monthly payment, giving you a bit more leeway where your finances are concerned.

Mortgage Refinance Can Help

Even if you are not currently having a hard time and you are just trying to prepare for the worst as you watch people around you losing their homes and their jobs, you may find that mortgage is an option for you. Through this process you have the ability not only to save money, but change the loan program that you are currently on so that your financial situation can be as stable as possible.

When you look into mortgage refinance you may be looking to get the lowest monthly payment possible. Before jumping at the lowest option you need to consider how long you plan on living in your home. If you only plan on being there for a short period of time it may be worth looking into an adjustable-rate mortgage, because this will offer you the lowest interest rates and payments initially, but the interest rates and payments will rise considerably as time goes on. If you plan to be in the home for many, many years, it may be more beneficial to go with a fixed-rate loan. With a fixed-rate loan your interest rate will be a bit higher but you have the security of an interest rate that will not change over time, which will offer you more financial stability so you can plan for later on down the road.

If you are already having a hard time paying your mortgage it is still worth looking into mortgage refinance and seeing what can be done to help you. Sometimes lowering your payment just a little bit each month is all you need to get back on top. You would be surprised to see how much you can lower your payment, if you just find the right loan program at the right time. You need to know what your plans are when refinancing so you can choose the right loan, but it’s worth the time and small amount of effort that goes into putting your feelers out there and seeing what you come up with in the way of more affordable mortgage options.

Everyone hits hard times during their home ownership. Instead of simply shaking your head and throwing up your hands, see what you can do to keep your home. Mortgage refinance has helped a lot of people get through their hard times with their home still in their names. This may be just the thing that you have been looking for to give you that bit of stability that you need as you get through this time. Refinancing won’t provide a miracle, but it may be that little bit of help that you have been looking for that will allow all of the cards to fall into place so your finances become a bit more optimistic.

Your Credit and Home Loans

Tue, 01 Jul 2008 00:00:00 -0400

When you express interest in buying a home, one of the first things that you will be asked, whether by a realtor, a home owner, or a mortgage lender, is about your credit. You just cannot get away from your credit when you want to apply for home loans so if you don’t know what your credit is you should be prepared to find out! Your credit is an important part of buying a home because it determines, in large part, whether or not you are worthy of financing from a lender.

Understanding How Your Credit Affects Buying a Home

When you apply for home loans, you are asking for more than just a couple of dollars, and because of this lenders have to choose wisely when they are considering those that are asking them for money. If a lender simply gave out money to everyone who asked they would be broke in a hurry because not everyone is going to pay them back. Every time someone applies for a loan the lender has to decide if the person is worth the risk that is involved with lending a person that they don’t know money.

It wouldn’t be fair for a lender to decide that everyone with a certain hair color or eye color would get the home loans that they needed, and it wouldn’t be fair for them to decide based on the rate or gender of the person. The only way for the lender to determine who is worthy of the financial support and who is not is to look at the past credit choices of the individuals who are applying for loans.

Depending on the type of loan that you are applying for, your actual credit score may not matter much. For instance, when you apply for an FHA loan your credit report is pulled and your credit choices in the past are considered, but you do not have to meet a minimum credit score to be approved for the loan. With more conventional loans you have to have a certain credit score to qualify. For instance, if you need to have a credit score of 650 to qualify for the loan and your credit score is 649, you would not get the financing that you needed.

One thing you should know is that not all credit blemishes are looked at the same way when you are applying for home loans. You should do your best to pay all of your bills, but if you have old medical bills on your credit report but you have been good about paying your credit cards, auto loans, and that sort of thing, you will be in good shape. If you have had bankruptcies and foreclosures, you may find that it is a little bit more difficult to get home loans. The great thing is that there are a lot of programs out there, giving just about everyone the chance to own a home. If you would like to own a home, give it a shot. The process will start and end with your credit, so if you know it is not good, you may want to take some time to build it up a bit so you have a better chance of getting the loan that you want!

Refinancing When You Don’t Have Much Money

Tue, 01 Jul 2008 00:00:00 -0400

It is often the people that are struggling financially that have a real need for mortgage refinance and could benefit most from it. While this is true, refinancing can be quite costly, as much as three to six percent of the principal balance on your home, which will likely be in the thousands of dollars. This is not something that a lot of people can afford, so what do you do when you don’t have a lot of money but you would like to refinance?

Mortgage Refinance on a Budget

It’s tough when you know that you need to make a change but you don’t have the money to make it happen. Mortgage refinance can cost a lot of money and when you don’t have a lot of money the fees associated with it can seem astronomical.

Luckily, lenders have become wise to the fact that those that need to refinance most don’t have this sort of money on hand. There are a few great programs out there that will help you refinance without having to pay this amount of cash up front. The programs are an awesome opportunity for people to refinance who may not have had the opportunity to mortgage refinance otherwise.

One option that you may have when you don’t have the funds to pay your closing costs is a no closing cost refinance. This is something that many people are taking advantage of because you can refinance your home and just have the closing costs rolled into the financed amount. So, if you were refinancing a loan of $90,000 and your closing costs were $4,000 you would have a total loan of $94,000. This sort of program allows for you to still pay those fees but you don’t have to pay them up front. This is a great opportunity to get the lower interest rate or more stable mortgage that you need. While this is called a no closing cost loan, you should be aware that you are still paying them, just not up front. You should also be aware that you are paying more on closing costs because you are also paying interest on the amount that was rolled into the principal balance.

Another option that you may have when you need mortgage refinance with no money out of pocket is the opportunity to simply pay a slightly higher interest rate on the loan. So, if you were refinancing that $90,000 and you had the same $4,000 in closing costs, you would have been given a five percent interest rate in the previous example, but here you may now have a 5.5% interest to help compensate for the fact that you did not pay your closing costs.

These are both great options when you have very little in the way of funds to pay out for closing costs. While this is beneficial when you don’t have any money, you should remember that you are still paying more than you would have otherwise because you are paying interest or more interest as a result of the funds being rolled into the principal balance.

Mortgage Refinance Makes Your Home Loan More Affordable

Tue, 01 Jul 2008 00:00:00 -0400

Your mortgage payment is likely your most expensive payment each month. If you could lower this payment it might make all of your finances a bit easier to deal with. Lowering this payment even just a little bit each month could make a huge difference for you. Many people are realizing this and they are considering mortgage refinance to make a change so that they can enjoy lower monthly payments and perhaps more financial stability. Lowering Your Payment Through Mortgage Refinance The first thing that you should understand is that mortgage refinance won’t work miracles on your bills or your debts, but lowering your payment each month can help you establish a more stable financial situation if that is what you are working toward. Many people who are desperate put too much hope in refinancing and they get frustrated when things suddenly aren’t better afterward. If you refinance and you are able to lower your monthly payment that is a good time to look at all of your bills and see where you can make changes. There are many ways that mortgage refinance can help you save. The best way to lower your payment is by lowering your interest rate. So, if you purchased your home 10 years ago and you got the going rate at the time, which was eight percent, chances are you could refinance today and lower that interest rate by at least two percent – perhaps more depending on your credit. Lowering your interest rate by two percent will make a huge difference each month and will substantially lower the overall payment that you are making over the course of the loan. In addition, when you refinance you will be refinancing less, after 10 years, than you were when you initially bought the home. So, when you lower the amount that you are financing and you decrease the interest rate, your savings can be substantial. Another way that you can save, though you may not see it in your monthly payments, is by switching from an adjustable-rate mortgage to a fixed rate. Many people get nervous when their rate is about to adjust and they look into mortgage refinance then to keep from having to pay really high interest rates. While you may not be able to get your fixed rate as low as your introductory rate for your APR loan, in the end you will save money because you are not having to deal with the very high interest rates that you may see when your interest rate adjusts. If nothing else, the stability that you will get from this type of loan will allow you to sleep better at night! As you can see, you really can save a lot of money when you look into mortgage refinance. While you can save, it’s important that you shop around a bit and make sure that you get the best deal for you. There are a lot of loan programs out there for you to consider and when you are trying to save you should comparison shop so that you are sure that you are saving as much as possible. Look into all the details of the loans so you know what to expect and you aren’t taken by surprise.