gmhTODAY 10 gmhToday Sept Oct 2016 - Page 31

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 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 31