Managing your closed mortgage loan

When it comes to managing what is arguably the largest single debt most people will ever have, many people, rather than choosing to actively, strategically manage their debt within the context of their personal financial plan, have a set it and forget it philosophy.  We offer our clients a different solution; a system which we refer to as our Mortgage Under Management Service (MUMS).

Much as you should visit your doctor for an annual physical and your Financial Planner and Insurance Agent at least annually for a planning review so too should you undergo a mortgage planning review to make sure you are on track to meet your financial goals and, if need be, make any needed adjustments to rebalance your debt and asset portfolio as life events unfold to make sure you are still on track to reach your goals and you are achieving optimal financial results in your personal financial journey.

Many mortgage professionals do not realize this and sadly, as a result, traditionally have not made an effort to help their clients properly manage their closed mortgage loans. 

Our firm realizes that as a consumer you do not want to keep a constant eye on the mortgage backed securities (MBS) market during the time your loan is in process, much less once your loan closes.  This is normal, you have retained a professional to represent you and you should expect the representation to extend past the time your loan closes so you can focus on living an enriching, fulfilling life, secure in the knowledge that your mortgage affairs are being properly, discreetly managed in the background over the years to come.

The only problem with this expectation is most traditional loan officers are not equipped with the knowledge, tools, systems, and team to properly manage your closed mortgage loan. 

Unlike traditional loan officers, our Mortgage Planners continuously monitor and manage our clients closed mortgage loans on a daily, monthly, and annual basis through our MUMS system by utilizing the following proprietary tools.

Client Rate Watch Service

Every single client our practice represents, whether they were referred to us and we originated and closed their current mortgage loan or we adopted their existing mortgage loan is enrolled in our Rate Watch Service.  There are two parts to this service.

Part One:  Every month our clients receive a personalized Rate Watch report. 

The Rate Watch report is customized to a particular client’s unique qualifying situation and can alert clients to cash flow saving options by showing how their loan stacks up to what is currently available in the market based on real world data - not some pop up internet ad, billboard, news paper advertisement, or radio ad designed to get the phone to ring so someone on the other end can bait and switch you. 

This report also examines ways for you to reach your Freedom Point sooner.  Your Freedom Point is the point in time when your mortgage is either paid off in full or paid off on your personal balance sheet – and thus carrying a mortgage loan becomes a strategic financial decision based on overall wealth accumulation goals.

Part Two:  In addition to the monthly Rate Watch report we monitor your closed mortgage loan constantly for the small windows of opportunity presented in the market which have the ability to save you thousands but may only last for very brief periods.  Due to ongoing market volatility in the credit markets with severe daily pricing swings not uncommon, our clients can rest assured that not only will we instantly alert them to when these small windows of opportunity exist in real time, but that they can elect to have our practice Forward/Prelock them into a lower interest rate within a matter of minutes of the market changing in their favor providing a certain, client net tangible benefit exists (i.e. lower monthly payments and interest rate).

Annual Client Mortgage Reviews

A basic tenet of financial planning is that in order for a client to obtain maximum results from any financial plan, that plan must be comprehensively managed and reviewed at least annually.  Through reviewing a client’s plan annually, adjusting it to meet the client’s evolving needs, and rebalancing the portfolio as needed, the likelihood of a particular client achieving their financial goals within a given timeframe is greatly increased.

As mortgage planners we help our clients understand the financial impact borrowing decisions have on wealth creation.  During our annual reviews we help our clients manage the liability side of their personal balance sheet in a way which provides safety, security, and liquidity, while maximizing monthly cash flow and tax deductions.  In helping our clients manage the liability side of their personal balance sheet we help create opportunities to grow the asset side of their balance sheet and thus accelerate personal wealth creation.