Was just speaking with Mike Pearl, CPA and Private Wealth Manager about
mortgage and tax solutions, positioning, problems, and planning.
As we were speaking about this, Mike make the comment that that the answer
to most mortgage and tax questions is….”It Depends….”
As I thought about this, that response is much more than a cliche or avoiding
of specific information. It is the beginning of deeper analysis.
The answer to most mortgage question depends upon the end result people want to achieve.
For instance, I’m often told “I want the lowest interest rate.”
Great! The lowest interest depends upon a couple of things–
– are you willing to pay $4,00-$6,500.00 in closing costs for the lowest rate?
– are you willing to accept a mid-term Adjustable Rate Mortgage?
That combination will give the lowest interest mortgage rate on the planet.
At this point, other priorities come to light.
So, with the lowest mortgage rate “it depends….” on what the ultimate end result is for –
“you want the lowest rate so that you have the lowest payment because
you need to build a savings cushion, plan for retirement, need more
cash flow because your children are in private schools or college?”
And the list goes on.
I’m reminded I never wanted a drill for home repairs.
All I wanted was the “hole.”
It works the same way for mortgages.
Do you have a “It depends” or a “drill” story? Tell us about
it in the comments section below.