Going Beyond "The Rate..."

Everything in the mortgage industry is geared towards the rate. What are your rates? Who has the best rates? What are the rates doing?

I'm here to tell you that the mortgage industry goes far beyond what the rate is. The rate is just a number! Yes, a number the ultimately determines the amount that a client will pay on his/her mortgage every month...but it still goes deeper than that. For example, "Does the rate really matter if you don't get the loan to begin with?"

The mortgage industry is about people. With that, it's about asking questions and understanding the goals, objectives and financial abilities of an individual client. What may be right for one client is completely different for another!

                                                             For example:

Family A: Mom and dad are "empty nesters." Their children, Jason and Michelle are out of the house and now they have much more space in their home than they needed before. Most of their "net worth" is in their home, because they have been focusing their money on paying down their mortgage and they have been realizing a great deal of appreciation on their home. The couple's intention is to move into a smaller condo in a few years, but they want to start investing in the stock market or they want to start traveling while they can. They sit down one night and decide to do a "cash out refinance" on their home. In this scenario, it makes sense for the client to be in a short-term adjustable product. Why? The couple's intention is to be in the home for a short period of time before selling and they can benefit from getting a lower interest rate on a short-term loan....not a 30 year fixed!

Family B: A young couple purchases a new home and their intentions are to raise their children in the home. For this couple, it makes more sense to protect themselves from rate increases by locking in on a long-term loan, such as a 15,20 or 30 year fixed. Why? Over the long term, rates will likely increase. Having the comfort of set payment, especially on a new home, will help the young couple set a budget and have a "game plan."

Working with a mortgage professional that understands this concept and works towards understanding your needs will make the entire loan process much more enjoyable. Purchasing or refinancing your home is one of the biggest decisions that you will make and knowing that you're in good hands is VERY IMPORTANT!

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/

Blog: http://activerain.com/blogs/lendingmagician

"You find the perfect home, we'll find the perfect loan!"