Basics of Mortgage Planning
The right strategy for one client may be completely wrong for another client. That’s why mortgage planning should be conducted with a certified professional who is trained in the five CMPS skill sets:
Mortgage & Real Estate Taxation – how and why to understand the tax implications of various mortgage strategies, and how to work as a team with CPAs, attorneys and financial advisors
Housing, Financial & Mortgage Markets – why interest rates fluctuate, and how to understand the housing, financial and mortgage markets
Cash Flow Planning – how to reduce debt, improve cash flow and identify mortgage planning opportunities around retirement planning, college funding, elder care, and other life events
Real Estate Investment Planning – how to help real estate investors compare options and evaluate the impact of various mortgage strategies on their rate of return
Ethics and Compliance – how to implement a pro-active approach to ethics and compliance during the pre-disclosure sales process
Why is Mortgage Planning Important?
Why Is Mortgage Planning Important?
The mortgage is inherently a financial product. Therefore, the mortgage strategy used by a homeowner or homebuyer carries financial consequences that impact his/her life. Mortgage Planning with a CMPS-certified professional helps a homeowner or homebuyer answer the following questions:
- Should I rent or buy a home?
- How much of a down payment should I use when purchasing a home?
- Where should the money come from?
- What are the alternatives?
- How much should I budget for my monthly housing expenses?
- What if I budget less or more?
- How will my mortgage decision impact my financial ability to help my children pay for college?
- How will my mortgage decision impact my financial ability to help take care of my elderly parents?
- How will my mortgage decision impact my financial ability to retire within the budget and timeframe that works for me?
- How will my mortgage decision impact my monthly cash flow situation?
- How will my mortgage decision impact my financial ability to save money for the future?
- How will my mortgage decision impact my financial ability to manage and reduce my debt in a timeframe that works for me?
- Should I purchase real estate for investment purposes?
- What mortgage strategy should I use when buying a vacation home or investment property?