Issue 31.16
If you are like any of my senior client’s that are on fixed income, anytime we can lower our payments or increase our income, no matter your age, we would always take advantage of the opportunity.
This past month with interest rates again hitting a two year low, everyone is refinancing or looking at their options to improve their interest or lower their payments. And, if you listen to my radio show, you know the keys are simply to watch your closing costs and keep the same period of payoff on your current loan and then it should always make sense to refinance.
The bottom line is always, if you can refinance with no fees, and lower your interest and payments and keep the same period of years left on your mortgage then why would you not refinance?
There is not a magic amount that interest rates need to drop in order for a refinance to make sense. You simply need to look at the payments and costs and measure the break even advantages and or disadvantages.
I heard of a new company in St. George now that “specializes” in reverse mortgages only. I understand companies that only offer reverse mortgages, but is that a smart thing for the consumer to only offer one product?
How can one be a professional mortgage planner or an investment advisor if you only offer a reverse mortgage? I understand you specialize in them, but you just took away all of the mortgage options available to your clients. So, in my opinion, if you are only offering one product or option in any business, you are selling essentially that product. You as a planner just took away your fiduciary role as a planner, because you are only offering one product – and in this case a reverse mortgage.
If you are a senior investment advisor and you only sale annuities for example, can you be an effective advisor? One product is never perfect for everyone. Everyone is going to have different financial situations and assets, as well as different levels of risk aversion or tax situations etc… there is not a single investment vehicle or mortgage that is perfect for everyone.
The reason I am one of the nation’s largest originator of senior loans is simply that I believe we have a fiduciary role, and not a sales role. Our role as a mortgage planner is to not sell anything. We don’t sell a mortgage. We plan and fit a mortgage with each one of our senior client’s goals and objectives. And, that mortgage that you trust someone with may have more financial implications and impact their retirement than perhaps any of their investment choices that they may deal with, especially during retirement years/
Interest rates as above are at a two year low. And, all of us including myself are refinancing our mortgages. Please make sure you are dealing with a registered investment advisor that is a mortgage planner when looking at all of your mortgage questions today. With interest rates at two year lows and so many mortgage choices available, please trust in a professional that will allow you to shop fees and costs as well as all products. If a realtor or a builder states that you must use “my lender.” Don’t ever agree to something like that. If you are buying a home, use whatever lender is best for you or buy a different home.
Call your lender, credit union, bank or our office at 525-2222 and see if you can smartly sharpen your pencil and payments on your mortgage today.
Until next time, Brandon.