Mortgage Planning vs Rate Shopping
A mortgage plan is one of the most important things to consider when shopping interest rates and a mortgage. It is not all about the interest rate- it is so important to know that a 1/8th can save or cost you thousands and funny enough it is not always the lower. A lot of lenders with good intentions offer a 'lender credit' or incentive to do business that looks good up front but typically results in a higher than the market interest rate. With over 10,000 closings The Mortgage Planner found how different each client’s goals are when buying a home either for your primary residence, second home or investment property. Each client’s goals are different so is the PLAN!
tHE PLAN- 5 and 15 years
Each loan we take an approach to view the 'best interest rate and combined closing cost' option based on the terms requested. So depending on the goal and strategies discussed with The Mortgage Planner, we will compare a couple of options with the overall cost of the loans showing 5 years out and then 15 years out. We will send you an interactive mobile app that we can outline and work details to best meet your goals with the best outcome while you retain ownership of the home.
cost and interest rates
The closing cost plays a big part in the overall plan. We review the options associated with long term ownership or short term. With short term, we focus on low to no closing cost and what Private Mortgage Insurance (PMI) options are available to pay the least during the time owned. Sometimes it makes sense to take a higher interest rate with no closing cost, as well as no PMI for short term ownership. On another hand, for long term ownership goals it can also make sense to prepay interest at closing for the long term benefit. Using this review and custom comparison report we also analyze all debt into the transaction methods to obtain the quickest debt-free outcome. We manage debt, a mortgage is a part of it and we review yearly with our clients to stay in pace with your goals.
MORE THAn a closing
As we monitor our client’s debt and mortgage year to year, a lot of times plans change. We are able to update and modify the approach from year to year. Just because you closed your loan with us doesn’t mean we are done. Many clients are long term partners with us and return no only for the reviews but because of the substantial savings, we gain for our clients year after year.