Mortgage Closing Complete! What’s Next?

Congratulations on your mortgage closing!  You get to keep paying on your new debt for 10 to 30 years… or do you?

Believe it or not, you’re not going to be in this new mortgage forever.  Most people tend to move or refinance.  What did you do with this current mortgage to prepare for the next one?  A home loan is a debt but there are a lot of steps you can take to optimize your future transactions.  Many borrowers just want the lowest interest rate.  This is a bad idea.  When you get the lowest interest rate on the market, you pay the most fees possible.  Unless you’re in a mansion, this buy down will not save you too much in your monthly payment.  Well, not enough to recoup the fees in the amount of time you refinance, sell or pay off your loan.

When you’re experiencing your next mortgage closing, consider what happens after you’re done.  In five years, are you going to want to live in this home?  Are you going to want to refinance to pay off other debts or invest in home improvements?  This is everything you need to consider when stepping into this complex transaction.  There are interest rates available where you don’t pay fees at all.  Does this make sense for you?  You need to make sure your mortgage originator is more consultative rather than transactional.  Is the person doing your loan concerned about your future or making a commission on your application or closing?  Let’s have a conversation to see what the future holds.  Sometimes a mortgage now doesn’t make sense.  Markets adjust, interest rates vary, and your goals change.  Are you in the same spot you were in five years ago?

Jeremiah Claramunt
NMLS ID 33184
Lender NMLS ID 176162