Mortgage Strategy
A
s of this writing interest rates are
very low. If you live in the South
County, you know home building
is exploding, and new home sales are at
a 7 year high. You also may have recently
heard that the average price of a home
in our county has increased for three
straight years.
When assessing your place in the
grand scheme of mortgage information,
strategy is something that often gets
overlooked. Factoring in all the many
variables of lending, the market, your
income and location, and your financial
goals all need to wrap up into a strategic
approach to how you borrow, and what
instrument you use.
By Jayson Stebbins
Mortgage Professional
Jayson Stebbins is a 23 year
veteran of the Mortgage
Banking industry and an
Accredited Mortgage
Professional through the
Mortgage Bankers Association.
He grew up in Morgan Hill
and currently lives in Gilroy. He
is the local Branch Manager
of Guild Mortgage, a 56 year
old Mortgage Banking firm.
His office is in Morgan Hill and
serves all of Santa Clara, San
Benito, and Monterey counties.
You can reach Jayson and his
Team at 408-782-8800 or at
[email protected]
It is not always about the lowest rate.
That is more tactical. It isn’t always about
on-line lender vs. local service provider.
That is more tactical. We always want to
step up one level to strategic thinking
and that can help drive us to a better set
of tactics and choosing our best loan.
For example: if someone knows they
are only going to be staying in one loca-
tion for less than 5 years, then the long
term family strategy could adopt a lower
rate, fixed term mortgage so that they
cash flow better in the short term. If
someone wants to get out of debt, and
they have equity in their home, the power
of money and strategic planning would
say that cancelling debt at 17% to borrow
at 4% makes good sense, depending on
the long term plans of the family.
There are lots of examples, but
the point here is that every mortgage
moment in our lives requires a little bit of
thought and planning. Paying points is a
conversation that many times is met with
an absolute “no way...we don’t want to pay
points”. And many times that is the right
decision, but what if you recapture your
investment in points in under 24 months
because of the lower rate you paid for?
That means if you are in the house for 10
years, you have 8 years of savings. Plus,
points are tax deductible.
Adjustable rate loan vs fixed rate loan.
Points versus no points. Rolling in closing
costs versus paying in cash. Mortgage
Insurance versus a first and second combo
loan. Paying your taxes and insurance in
the payment versus paying them on your
own. The mortgage loan process is full of
small decisions that are tactical in nature,
but all are servants of your loan term
financial strategy.
Your mortgage Loan Officer should
help you answer your strategic questions,
before starting into the tactics of getting
your loan. Use your Realtor to answer
questions for you to help you define the
plan. Local professionals want to serve
you and your family, and the best way to
do that is to help you achieve your long
term goals.
Buying a home or refinancing involves
the biggest debt we will incur. Take time
for strategy first, and it will pay off in the
long run.
Jayson Stebbins is a licensed mortgage agent in CA for Guild Mortgage Company NMLS#38463;
Licensed by CA Disclosure:Licensed by the Department of Business Oversight under the California Residential
Mortgage Lending Act. NMLS Company Unique ID 3274; Branch Unique ID 38480. The postings on this
editorial don’t necessarily represent the positions, strategies or opinions of Guild Mortgage Company or
its affiliates. This information is not guaranteed to be accurate and shall not be construed as a guarantee
of loan approval. All loans are subject to underwriter approval, and are subject to change without notice.
Equal Housing Lender.
GILROY • MORGAN HILL • SAN MARTIN
SEPTEMBER/OCTOBER 2016
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