Does your mortgage match your investment goals?

March 18, 2015



 Financial and Investment Advisors assess a combination of demographic information and risk aversions of a client to help them reach their goals and advise on where investments should be made to offer the greatest long term payoff to match those goals.  A Mortgage Advisor follows the same formula.  When I meet with a client I take these same financial goals and match them with a mortgage that also helps in facilitating asset growth, equity growth, and future financial stability.  Owning a home is often seen as one the largest and most important investments made in an individual’s lifetime.  Utilizing a mortgage as a tool to leverage your home as an asset provides an advantage to further financial stability.  How can this be achieved? In the following paragraph, I have outlined an example of a situation where I personally have assisted the client in leveraging their home as an investment tool. 


     I had a client come to me and ask for a 10 year fixed rate mortgage.  They felt they were close to paying off their mortgage and were going to retire in 10 years.  This is a common situation I cross as the mentality of many people is to pay off that debt and not owe a mortgage on the home.  In this situation they owed $100,000 on the mortgage and a monthly payment of about $1,300.  After gathering some more information during my initial meeting it had come to light that the borrowers may move within the next 5 years as they wanted to downsize because they were empty nesters living in a big a home. I proposed they utilize a mortgage type in which a very low rate is fixed for 5 years and adjusts to market rates on the 6th year (if they are going to sell the house in the next 5 years, it doesn’t matter whether it adjusts on the 6th year because they won’t own the house then).  The loan was then amortized over 30 years thus allowing them to significantly lower their monthly payment to about $550 per month.  They then invested the difference in savings into an asset growing retirement account which will continue to grow exponentially over the next 5 years as long as they diligently invest the savings they are getting from the lower mortgage payment.  Being near retirement age, the borrowers were very excited to pad those retirement accounts over the next 5 years.


     This example shows one of many options available in leveraging your mortgage.  I treat each client’s situation differently and advise accordingly.  I have helped borrowers purchase investment properties, leverage equity in their home for remodels/big purchases/other investments, and prepare for a down payment on a new home. 


     Take some time today to review the structure of your mortgage and make sure that you are reaping the investment benefits.  Ask yourself, does your mortgage match your short term and long term financial goals?


     To find out how you can better leverage your home and utilize your mortgage as a tool to financial stability please call me today at 740-398-4917.



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O: 614-602-3646

C: 740-398-4917







State Bank

4080 W Dublin-Granville Rd

Dublin, OH 43017

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