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Managing Mortgages January 25, 2008

Posted by shaferfinancial in Uncategorized.
Tags: , , ,

Reel to Reel       Are you listening to music on a reel to reel player? 

Sometimes, there are changes in the way people do business that take a while to catch on.  Managing one’s mortgage is just that, a positive change that is taking awhile to catch on.

First let me tell you that managing debt is not a new concept, businesses have been doing it for a long time.  However, when applied to personal finance it is a new way of thinking.  Last generation, folks got a 30 year amortizing loan, paid it off as soon as  possible, and  felt much better for it.  Mortgage burning parties were all the rage.  Many people still feel that way about their mortgage.  Back then credit card’s were not as ubiquitous as they are now, and credit card debt was not really a factor.  Folks also depended on their defined benefit pension for retirement income.

My, how things change.  Now credit cards and the balances on them is a way of life for most Americans.  Currently, only 39% of those retiring have a defined benefit plan, and that number goes down every year in the forseeable future.  However, many people still think about their mortgage the same way as the last generation did.

But there is a better way of handling their mortgage.  Manage it scientifically.  That is where a small group of mortgage professionals, including myself, has seperated themselves from the mainstream of the industry.

Managing one’s mortgage is really managing one’s home equity.  Most people have a lion’s share of their savings in the form of home equity, yet have not been educated in understanding the repercussions of this fact.  Many of these folks can tell you the return on their investments, yet there only object in their mortgage is to get the lowest rate.  So when they hear rates are low they go out and ask a couple of lenders for a rate quote and refinance if the rate is lower.  But does it really make sense to refinance at that time?  How much lower does the rate have to be?  What about a home equity line?

What if your mortgage planner sent you quarterly updates on rates.  What if your mortgage planner kept you apprised of your home equity?  What if your mortgage planner could provide you with a plan comparing different loan programs for total cost and future wealth?  What if s/he did this on a regular basis for you?  What if your financial situation changes or is going to change? Do you have a financial professional to talk to about your changing situation?

When your mortgaged is being managed, then all the above will be at your disposal.  Call me to have your mortgage managed or call a like minded mortgage planner in your area.  Isn’t it time you moved into the new century and stopped doing the same thing your parents did?

Isn’t it time to PLANNED to build wealth? 


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