Structuring Your Mortgage: Rate and Payment are Secondary

When most people get a mortgage, they focus on what the rate is and how low the payment is – which is determined by rate, down payment amount and term. What most people lose sight of (or don’t think about in the first place) is their overall financial picture.

Are You Prepared for Retirement?  

The fact is that most Americans are ill-prepared for retirement. Additionally, they also don’t understand financial concepts and strategies that will help them properly prepare for retirement. The best time to start preparing for retirement is NOW.   Paying off your mortgage as fast as possible is not the smartest financial decision for a number of reasons, perhaps most of all, because there are much better places to put your money when it comes to creating wealth.

Creating Wealth vs. Paying Off Debt

While having a great low rate is important when getting a mortgage, getting the lowest payment is not. Getting the lowest possible payment means putting down as large a down payment as possible which means less money for investments and a smaller tax deduction. This is the other thing that people don’t put enough importance on – tax strategies. While we shouldn’t have a tax deduction as our primary element on which we make a decision, proper tax planning is very important. For instance, a Roth IRA is much better than a traditional IRA. There are many ways to grow wealth and keep it, rather than paying taxes (income, capital gain, estate, etc) to the IRS, if you have the knowledge and the right team in your corner.

Investing in real estate is a great way to create wealth and it has some great tax advantages, too. There are also other liquid investment options that give you the opportunity to create wealth and tax plan. When you use me for your mortgage needs, I will help you understand how structuring your mortgage the right way will help set you up for financial success. I can also introduce you to a variety of financial advisors who can help you put together a financial plan that will set you up for success. Contact me for a free consultation to see how much more you can have at retirement when you consider the bigger picture.  Check out my Case Study post for some actual numbers from a client I helped who wanted to put 50% down on a $300,000 purchase.

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