What is Mortgage Planning? Definition

I am right now working on both Jerome Sierra and Yulin Lee's websites, editing some content for them. And one of the key thing we want to bold is the mortgage planning concept. A concept that is the base of our business, which differentiate us from most of our competitors. But what is mortgage planning? This is a concept very difficult to define. Therefore, I undertook some research and the project to write a complete definition and description of it. Let me know what you think about it.

Mortgage planning aims to incorporate your mortgage, debt, and home equity into your overall financial plan. This is why mortgage planning is very important. A CFO in a company always has to deal with debts, and liabilities. Financial planners are focusing on the assets and the income, but don't really manage the other side. A mortgage planner is dealing with the biggest debt a person will ever have: his mortgage. But managing debts is important. Being able to manage debt will help your company to boost its revenues (the famous multiplying factor), and also secure its financial status.

Mortgage planning aims to use mortgage as a leverage to create wealth both on a short term and a long term period. That is the first definition that comes to my mind while speaking about mortgage planning. Mortgage can turn into a very powerful tool to build wealth. You can use the equity in your house wisely and invest it in a diversified portfolio of stocks. You know by the way that 82% of millionaires in the US have built their fortune thanks to real estate? Think about it.

Mortgage planning aims to respond to your mortgage needs throughout your life. Planning your mortgage means to evaluate throughout your life your needs in terms of mortgage. Wether you are thinking about buying your first home, refinancing, buying a second house/investment properties or retiring,  a competent mortgage planner will guide you through these different steps.

I think that it responds properly to the definition of mortgage planning, even though it is more a description than a real definition.

Here are the services a mortgage planner can offer you

• Mortgage strategy: Setting up a plan based on your financial profile in order to qualify for the mortgage program that will suit you the most.
• Equity repositionning: A mortgage planner will be able to help you reposition wisely the equity you have in your house.
• Asset optimization
• Annual mortgage revue: This is a key service. Thanks to this annual review, you will be able to determine how your finances and credit score are doing and if you need to refinance, and if you have opportunities to buy whether a bigger house, a second house or a home property.

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