With the proliferation of mortgage modeling software coupled with Webinar technology mortgage holders and home buyers now have access to a higher understanding of how a mortgage can enhance their financial plan. While banks and the traditional loan officer generally only qualify borrowers debt-to-income and loan-to-value with a 30-year fixed, Mortgage Planners use sophisticated modeling tools to connect the dots between a mortgage and a borrowers financial plan. While loan officers focus on rate and program, mortgage planners are paying off mortgages in half the time while developing in most cases over a million dollars of tax free retirement income. Welcome to the new age in acquiring a mortgage.
The mortgage industry is experiencing sweeping changes driven by the growing trend toward mortgage planning, and home buyers are the primary beneficiaries. Mortgage planning, which involves a Certified Mortgage Planner as opposed to a loan officer to analyzing a borrower's mortgage options with sophisticated modeling software as part of an overall financial plan, is enabling homebuyers across the country to utilize their home equity to better secure their financial futures.
"Conventional wisdom on mortgage loan selection is outdated and misdirected! "In many cases, traditional mortgages like 30- and 15-year fixed rate products are considered risky. That's for many reasons. For example, if someone opts for a 30- or 15-year fixed rate loan, thinking that it's the best way to build equity in their home, then one day loses their job and can't pay their mortgage, the bank won't loan them money to pay off that loan and all of a sudden the home is at risk. Furthermore banks are freezing access to home equity and making it more and more difficult to qualify for access to your money. The bottom line is banks want to hold back that equity to secure their position not yours. Mortgage planning takes this-and many other factors-into consideration. It's a new way of thinking about a mortgage that makes much more sense and is less risky than a formula that was created almost 100 years ago. The system is changing and I understand borrowers need deeper understanding in order to adjust."
A home is the largest investment that most Americans make in their lifetimes, and mortgage planning is designed to treat the home for exactly what it is: an investment. Mortgage planning utilizes the concepts that banks and many businesses use to successfully optimize their debt and investing strategies. In essence, with mortgage planning, mortgage planners can help borrowers better leverage and structure their debt in order to achieve the highest tax benefits, liquidity, safety and get the highest possible return.
Reputable Mortgage Planners differ from run-of-the-mill-loan officers in that they're less focused on interest rates, and more focused on the long-term effects that various mortgage loan programs will have on the borrower's financial state. In the mortgage industry, we're seeing great response to mortgage planning. While I don't have statistics on what percentage of borrowers are going with Mortgage Planners over standard loan officers, the most successful loan officers embrace the principles of mortgage planning. Borrowers are thriving as a result of this growing trend.
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