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 an 1/8th can save or cost you thousands and funny enough it is not always the lower. Alot of lenders with good intensions offer a 'lender credit' or incentive to do business that looks good up front but typically results in a higher than market interest rate. With over 10,000 closing The Mortgage Planner found how differant each clients goals are when buying a home either for your primary residence, second home or investment property. Clients goals are differant 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 stratigies discussed with The Mortgage Planner we will compare a couple 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 play a big part of 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 availble 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 analize all debt into the transaction methods to obtain the quickest debt free outcome. We mange 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 clients debt and mortgage year to year, alot 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 doesnt mean we are done. Many clients are long term partners with us and return no only for the reviews but because of the substatial savings we gain for our clients year after year.