Carpe Diem Mortgage Services

Your Home, Your Wealth, and Your Lifeplan

Why would a CFP recommend mortgages?  Financial planners may be segmented by licenses and inclinations to promote stocks, insurance or realty, but this segregation ignores the long-term interests of clients who may need financial strategies that mix asset classes.  My CFP training failed to show CNBC reports that, in 2019, the median net worth of homeowners in the U.S. was $255,000, while renters had a net worth of $6,300. This is a difference of 40 times between the two groups.  Realty should be in everyone’s plan.

Renters pay a little less for rent than for mortgages, have greater flexibility of lifestyle, and avoid maintenance and property tax costs–but few are likely to invest differences in the market well enough to match house payments which are virtually forced savings programs.  Homeowners pay down mortgages over time and benefit from leveraged investments.  Many Californians retire free of mortgages and pass on a legacy of houses tax free with stepped-up basis for their children.

Investopedia reports that “From March 1980 through September 2023, the U.S. housing market’s annualized average growth rate was around 8.6%.”  If you borrowed $600,000 at 4% to buy an $800,000 house, the appreciation is 8% of $800,000 which means the house doubled to roughly $1.6 million in nine years while paying loan interest of about $300,000.  So you turned $200,000 into $500,000 with returns over 15%.  Opportunity knocks as rates are falling.

Life Planners encourage homeownership not just for scrooges, but for those who fulfill dreams. 

Freed from landlord rules, homeowners live responsibly with pride of ownership as they create little utopias with tailored homes and manicured gardens.  Homeowners’ children complete high school and attend college more frequently.  The Nebraska Economics and Business association reports a one percent increase in (lagged) homeownership leads to a 1.253 and 1.513 percent drop in the subsequent per capita property crime and a 1.043 and 1.123 percent drop in the subsequent per capita violent crime for the years 1991 and 1992…”  The stability of housing probably enhances the feeling of community with people satisfied they established roots and enjoy long term friendships.  Homeowners are more likely to become involved with social groups and churches.

For more information, ask yourself who you are, what kind of mortgage might suit you and how the process works after you set up a dream planning appointment.

The life planner as Mortgage Loan Originator is doubly bound by law and ethics to serve as fiduciary who offers financial choices, then gets paid limited amounts based on the size of the loan rather than its interest rates.

This fee-only fiduciary planner will tell you frankly if you can afford a house, if a house suits your lifestyle, or if owner financing would better serve you than outside loans. Our lending process starts wise with reflection on life plans, but proceeds relentless with pursuit of the means to close loans.

 

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Mortgages offered through Hill Mortgage 
NMLS# 309812/2134092
DRE# 01332532/02142750

Carpe Diem Mortgage
NMLS #2565162
DRE #01214571