I know some of my fellow mortgage planners may cringe when they read the headline to this article, but I do hope that we all have an open mind to the whole concept of mortgage planning.  We're not "Mortgage preservation" specialists, but we need to be mortgage planning advisors.  

Like everything in life, sometimes you can over do that which maybe good for you.  Example, it has been proven that too much Vitamin A can cause problems.  But a steady diet of quality Vitamin A is very beneficial.  I know this is a simpleton way to view this process, but I read a blog recently where the author lamented the fact that she's always been taught by "well meaning" indviduals that you should pay off your mortgage.   The reality is that is a "Myth" in many circumstances...BUT...sometimes paying down a mortgage is not a bad idea at all.

Serious Mortgage Planners need to understand that in the medical profession they'd be considered a general practioner, and not a specialist.  Specialists are whom we should be referring our clients to based on the symptoms they display when we meet with them.

Example...A first time borrower approaches me.  They are excited because they just had their offer accepted through their real estate agent for a new home.  They got a great deal, with over 10k in equity in the deal.  Now they ask me to help them with the loan, and after reviewing the information they give me, we close with a 100% loan off the purchase contract.  Within 6 months they finish the basement and ask me to review the second loan we originated to see if we can get them a better deal.  After analyzing their situation we determine that they do have over $20,000 in equity after originating a new loan.  I also suggest that they look at developing a rainy day fund ( 3-6 month expense account for major purchases), and because they have little to no insurance I recommend they talk to my trusted advisor referral partner.  I then show them a program to pay down their mortgage over the next 3-5 years, so that when they reach a particular point they then can pulling equity to fund other investment and planning strategies and unite that into a comprehensive plan.  During those 3-5 years I introduce them to financial planners, CPA's, estate planners, and a competent investment real estate specialist.  By year 5 they are ready to make some big noise, and hopefully they are comfortable in buying investment homes and pulling their equity for passive investments.

BUT this example could be entirely different if we plug in a 55 year old couple with no money in retirement accounts, and just equity in a home.  If your working with a mortgage planner, make sure they are the big picture type of guy. Not someone who has little experience but has some nice letters behind their name.  There are going to be many more mortgage originators that will spin off and call themselves mortgage planners.  But like the financial planning industry, make sure they don't specialize in just one niche.

For you mortgage planners out there, Doug Andrews, author of Missed Fortune, is a great guy but he sells INSURANCE not loans.  His concepts are generally sound, but they don't apply to all people all of the time.  If you've ever heard him speak he'll admit that himself.  He used a term called "suitability", make sure you understand it and practice it if your going to be a mortgage planner.  If you think we're immune from law suits, then think again.  Make sure your advice matches your knowledge, and make sure your advice is applicable to your clients future goals and aspirations!