What exactly is Mortgage Planning?
Very simply, mortgage planning is the process of evaluating your mortgage options in the context of your financial plan. We assist clients who want to improve their financial well-being by educating them into the nuances of home loans and assist them in finding the most beneficial mortgage product and payment strategy. The strategy you use today carries financial consequences that can impact your life for years to come. The right mortgage strategy for one client may be completely wrong for another client. That’s why it’s important your mortgage planning should be conducted with a Certified Mortgage Planning Specialist who is trained in the 5 skill sets.
- Mortgage Taxation – We work with clients determining the tax implications of various mortgage strategies and the impact that mortgage strategy will have on the rest of their financial plan.
- Housing, Financial & Mortgage Markets – We work with our clients to help them understand mortgage rates, their direction and what makes them move and the correlation between the housing, financial and mortgage markets.
- Cash Flow Planning – We work with our clients reducing debt, improving their cash flow in order to fund other opportunities such as retirement planning, college planning, elder care or any other life events.
- Real Estate Investment Planning – We work with our clients who which to diversify their investments and buy investment properties assisting them in comparing options and evaluating the different mortgage strategies on their cash flow and rate of return.
- Ethics & Compliance – Working with a CMPS professional, you can rest assured you’re working with a true adviser who is working for your best interest and with the utmost professionalism.
Mortgage Planning and Your Homes Equity
Most of what we have been “taught” about mortgages and home equity is outdated. Through our life our parents and the media have instilled in us to make a big down payment, get a 30 year or even a 15 year fixed rate mortgage and make extra principal payments in order to pay off our mortgage as quickly as possible. We have been taught that mortgages are at best a necessary evil. The problem with this logic is in the very simplest terms is, it is outdated.
If the financial crisis taught us anything it is consumers need to be smarter with their financial choices. Thousands of Americans lost their homes who put 20%, 30% down, took out shorter-term 15-year loans, who made extra principal payments religiously and those that didn’t experience a financial hardship during this time spent more than a decade being underwater in their home. If paying off your home is the best thing for American’s why is the fastest growing mortgage the Reverse Mortgage for those 62 and older? The average American has less than $75,000 in their 401-k for retirement and even fewer have a six-month emergency fund.
The Times They Are A Changing
No longer can we depend on our company’s pension for a secure retirement. We can no longer expect to have the same job for 30 years. We can no longer expect to live in the same home for 30 years. In-fact many Americans switch careers 5 or 6 times through their lifetime and many more move into a different home every 5 or 6 years. With our life expectancy higher than ever before, health care costs skyrocketing, pensions shrinking, social security on the brink of collapse and corporate America going through one bankruptcy after another, it is time to start taking a serious look at some alternative ways of managing our money, home equity and personal cash flow.
Contact us today for your FREE Report, How the Affluent Manage Home Equity. This report will reveal the truth about how you can safely manage your mortgage and your home equity to build and conserve wealth. You will learn how to become debt free sooner, achieve financial freedom and make a difference in the lives of others or give us a call today at (804) 282-8820.