Select a Mortgage Like You Would Buy An Outfit

by: Brian.Brady on 2008-03-29 @ 3.07:30 am

Mortgage origination is not a creative endeavor; mortgage advisory should be.

Creativity comes from a knowledgeable practitioner, with a disciplined understanding of how to apply financial planning techniques, to an individual's needs, wants, and goals. Like a talented wardrobe designer, the recommendation should be a balance of propriety, "fashion" and daring; all tailored to highlight the user's strengths while downplaying their weaknesses.

A mortgage should be functional as well as stylish. It's a little black dress or blue blazer, accessorized properly, to make the user comfortable and confident about their choices.

pee It starts with the expected hold time of the mortgage, not the house. Life events like college for the children, potential promotions, remodeling, major purchases, and anticipated appreciation, all play into the hold time for a mortgage. While homeowners may expect to live in a home for 20 years, economic and life-style events dictate that the loans can change as often as color choices. Just like "pink is the new black", fixed rate loans may be the new risk. Erring towards the "staples" rather than the "latest fashions" is always preferential. Blue blazers, however, change with the times. While a suit always seems appropriate, it CAN signify a staid and lazy approach; much like a 30-year fixed rate mortgage. The ramifications are similar. Like a nebbish at a dance, the 30 year fixed rate loan can blend into the backdrop and result in missed opportunities.

Flair then, comes in the proper tailoring of the mortgage. Interest-only and negative amortization loans, attract ang opportunity (like investment opportunities) like a plunging neckline attracts the admiring glances at a healthy decolletage. Employment of "exotic" loan choices must be used to accentuate those assets while minimizing unwanted attention. Intent then, is the driving factor. We want to attract the "proper" opportunities while avoiding those unwelcome advances.

Enter the professional mortgage planner. She assesses the environment, like a wardrobe designer would ask about the event. Environment, economic or social, will dictate what is and isn't appropriate. She understands the user's tolerance for "risk". While wardrobe designer would understand that a middle-aged accountant might be uncomfortable in a lemon yellow blazer, the professional mortgage planner understands that a certain loan solution, while stunning for a young bombshell, would make some matrons feel self-conscious. The creativity lies within the ability to make the right choices for the age, personality, and comfort level of the user.

Mortgage borrowers should not shop on price alone. While certain financial decisions are akin to "picking up a pair of jeans", a mortgage solution should be approached with the diligence applied to a wardrobe purchase for a gala event. Quality, experience, and execution applies when selecting the proper mortgage planner; sometimes shopping on price alone can result in a costly mistake.

Creativity, in mortgage solutions, is much like a perfect outfit. Certainly, some users can make fashionable and appropriate wardrobe decisions, unaided- the same could be said for mortgages. The wise individual leaves little to chance, For a few extra bucks, a knowledgeable fashion adviser can outfit you properly...just like a professional mortgage planner.

The cheapest outfit can often cost you the most money- just like the cheapest mortgage.