September 22nd, A Scent Of Change Is In The Air

This is a time of change! The mortgage industry has been going through turmoil. The real estate market has seen major changes since the boom days where instant appreciation of 20% - 50% was the norm. While we all enjoyed the good old times, reality is settling in.The question is: Are You Ready For the Change?

• Are you ready to challenge some of the assumptions we have always had about money?


• Are you ready for some unconventional advice?


• Are you ready to stretch your comfort level in order to achieve financial freedom?

If you answered Yes any one of these questions, take action now!Invest one hour of your time with us to learn how mortgage planning can create a positive impact on your life. This could be the most counter intuitive lesson you’ll ever learn.

Click here to RSVP to this seminar.

Mortgage Interest Deductibility

As I am working with clients and helping them with mortgage planning, one of the things that comes up often which most people aren't aware of is the deductibility of mortgage interest. The big misconception is that you can deduct all of the mortgage interest paid on your primary and/or second home, up to $1 million in first mortgage plus $100K in home equity.



This is only partially true. Mortgage interest is deductible when it is incurred to purchase, construct or substantially improve any qualified home. The key here is "acquisition indebtedness". Why is this important? Well, it is important because knowing this rule will help you strategize on how much downpayment you should put in a house. Let me give a specific example:



If you purchase a $1mil house, and put 50% down. Your loan would be $500K, and you can deduct all the mortgage interest paid. A few years later, you decide that you need to pull some equity out to do home improvement. So you do a cash out refinance with a new loan amount of $800K. Now, most people think that they can now deduct all of the interest paid on that $800K. Not true! You can deduct whatever was remaining from the original $500K loan, plus another $100K.



Although it may not be obvious, but one small adjustment in your home financing strategy can yield huge different results in your long term financial planning. So, the next time you are ready to purchase a home, look for a mortgage planner who understands the issues and works closely with CPAs and financial planners to ensure your total success.

Annual Mortgage Reviews Bring Borrowers Closer to Achieving Financial Goals

In a time of change and uncertainty, it is imperative that we become more diligent about our finances. Panic or complain never help the situation.

Yearly reviews are a great way to keep on track with your financial goals. You’re probably already meeting with your financial advisor and other asset manager for quarterly or annual reviews, and you should do the same with your Mortgage Planner as well. An annual mortgage check-up is an ideal way to make sure your mortgage is still having the maximum positive impact on your overall financial plan.

A lot can happen in one year. The market can take turns that can open up new opportunities, such as reduced interest rates, new loan products or changes in home values. Furthermore, your personal and financial situation could be mildly to radically different than it was just 12 months prior. Perhaps one or more of the income earners got a raise or lost a job. Maybe you received an inheritance. Even a minor, one-year change in one of your kids’ college plans could impact your financial situation in a way that would benefit from an adjustment in your mortgage strategy.

Periodic reviews serve several purposes. First, they establish a consistent path toward achieving your financial goals. Secondly, they ensure that you stay on track with your goals. Sometimes plans need minor adjustments, but without the knowledge that comes from a thorough evaluation, those minor adjustments may go unnoticed. Often, by the time an adjustment becomes apparent, you may have already lost valuable time and/or resources that could have been spared with a few minor modifications along the way. Finally, periodic reviews help to keep you accountable toward your commitment to achieve your objectives. Without accountability, it’s very easy to let your savings and investment actions fall by the wayside, especially when unexpected expenses arise. Knowing that you’ll be discussing your action steps will help to keep you committed to your goals.

Consider scheduling a periodic review with your Mortgage Planner in conjunction with your asset manager’s review. In addition to saving time, you’ll also gain the advantage of your own personal management team for your financial asset-building program.
Remember that getting clarity on your financial situation is never a waste of time. If you find that your current financing is more desirable than the financing that is available in today’s market, you’ll know that your Mortgage Planner did a great job advising you last time. If you find that your changing circumstances have dictated that a new loan will better suit your new situation, your Mortgage Planner can bring you one step closer to achieving your financial goals.

Start blogging young!

I am Yulin's daughter and I'm reading my mommy's blogs. My mommy is teaching me how to blog. I'm interested in Harry Potter, and I've read to the fourth book.I wish I could be a wizard too. Casting spells sounds SO exciting and flying on a broomsticks! I've always wanted a blog.





Written by AML.

What does college funds have to do with mortgages?

I went to a baby shower today. Looking around the room, most people were in their mid 30s - early 40s, with small children. Conversations came up around real estate and the mortgage market, something else came to mind that most of these people probably don't see - the connection between their mortgages and their plans on college education funds for their children. People asked me what are the rates? Will they go down or up? When should they refinance? While these are important question, the other important questions I would like to ask my clients are: what is your overall financial goal(s)? What kind of college saving plans do you have?

You see, it's all about cash flow management and the optimization of your available resources. Most people want to pay down their mortgages, and then save for college funds using after their after tax dollar. But what if we re-position your equity so that you can maximize the benefit of mortgage interest deduction while having more available funds to invest and save for college funds?

As a Certified Mortgage Planning Specialist, we help clients with running scenarios and evaluate various options. There is no fixed formula as each person/family has their unique needs and goals. If you are wondering what it would take to save for college and having affordable mortgage payments, give us a call.