Mort­gage Lenders and Choice

Some very per­ti­nent issues you need to be aware of expand beyond just the lend­ing itself.  Are you sub­ject to AMT?…will you be?  Do you need to avoid a 4506?
From what source are down pay­ment funds com­ing?  Are you hold­ing title in trust?…should you?  Have you devel­oped a cash flow pri­or­ity model
yet?  Have you exceeded the home equity indebt­ed­ness cap on cash out pre­vi­ously?  Which loan struc­ture is most ben­e­fi­cial — com­bi­na­tion (combo) loan strat­egy or one loan with either SFPMI/LPMI rate/SPLPMI (8+ types of mort­gage insur­ance)?  If cash­ing in assets for down pay­ment, which assets should be uti­lized / what hold­ing period should be incurred to obtain an invest­ment inter­est deduc­tion should home equity deductibil­ity be exceeded?

Mak­ing your deci­sion should be based on every­thing poten­tially affect­ing the out­come of your mort­gage, finan­cial plan and tax­a­tion.  Since 2000/2001 and the tech­nol­ogy boom / bust, the mort­gage lend­ing indus­try has sub­se­quently taken a turn.  Some aspects have changed for the bet­ter, some not.  Many con­sumers are not yet aware that acquir­ing financ­ing is not only about obtain­ing the low­est rate and front end fees (although that is a pri­mary com­po­nent).  Rather, it is about the low­est effec­tive cost accord­ing to time value, struc­ture and changes in those val­ues over time (loan struc­ture, asset base, prop­erty time owned etc).  We uti­lize com­plex finan­cial and Mort­gage Plan­ning soft­ware to break apart how your dol­lars play out over a given period of time depend­ing on these loan lever­ag­ing sce­nar­ios com­pared side by side.

There are many unfore­seen cir­cum­stances that can occur at some point in a client’s life for which a rea­son­able level of advise on mort­gage and finan­cial plan­ning need occur…either pur­chas­ing or refi­nanc­ing.  Prepa­ra­tion for many finan­cial avenues of your life should be addressed simul­ta­ne­ous to the home pur­chase or refi­nance i.e., estate plan­ning, wills, divorce or mar­riage prob­a­bil­ity, future expenses, cash flow pri­or­ity, whole life/disability/job loss insur­ance, con­ver­sion or re-election of the prop­erty to some­thing other and so forth.

An expert in the field of real estate finance and mort­gage loans will be cen­tered on credit avail­abil­ity, prod­uct knowl­edge, tax­a­tion, time val­ues and arbi­trage prin­ci­ples and proper plan­ning.  He or she will ask ques­tions to help guide you, not sell you.  An expert will be cur­rent on guide­lines and cur­rent loan guide­lines — and why one is ben­e­fi­cial over another.  Mort­gage pro­grams are as diverse as they come.  It takes a knowl­edge­able pro­fes­sional to help you make the right choice for your­self.  FIND THE PROFESSIONAL FIRST… AND THEN COMPARE VALUE.