The Inherent Opportunity in Mortgage Planning

When I talk about “mortgage planning,” I’m not just talking about what kind of home loan you should look for.  Certainly you have options when it comes to selecting a loan, but the implications of those options go far beyond the terms  of the mortgage itself.  Because how you configure your loan sets the stage for an investment strategy that could impact the rest of your life.





It’s Not Your Father’s Mortgage Market Anymore

The world has changed considerably since our grandparents and even our parents were financing their homes with mortgages.  Gone is the era when a bank could arbitrarily seize your home to protect their interests.  Gone are the days when the typical family remained in a home for 30 or more years. And yet, many homeowners still view mortgages with that obsolete mindset, and in so doing may be missing the opportunity of a lifetime.

With these changes comes a whole new paradigm in home financing.  Because securing the smallest loan you can handle, with a view toward paying it off as quickly as you can, by definition seeks to tie up as much of your money and equity as possible.  The larger the loan, the more money remains with you.

The truth is that your money is actually safer with you than it is with your mortgage lender.  Each dollar you put toward principle reduction every month     is a dollar unavailable to you for emergencies, or for other avenues of investing.  When the time comes to sell your house all the money you’ve thrown at your equity comes back to you, but with virtually no return on investment, since it’s the house, not the equity, that has appreciated. 





Listen to the Smart Money

Many of the most sophisticated and wealthy people in the country, folks who could easily elect to pay off their mortgages, choose to maintain a large mortgage so they can invest their money elsewhere.  Of course, how that money is invested is another conversation, one that I, as a mortgage lender, can only facilitate.  I work with only the most insightful investment professionals in this regard, people who share my views and values about customer service, and together we will work to define a solution that fits your situation perfectly.

At a glance this might seem counter to my objectives as a mortgage lender, that being to place as many mortgage dollars as possible.  But that’s not completely true.  My highest goal is to show my clients an optimal financial situation that fits their specific needs, and to find a mortgage – no more and no less – that fits those needs.  Only through careful planning and the application of sophisticated financial analysis tools can we determine that optimal solution.

How you invest your money is not my job.  But providing you the opportunity to do so, however you choose, is.  And the key to it is planning.