Financial planners and mortgage consultants can work together to improve the financial situation of the client without increasing the debt and using the current cash out flow to secure a financial future.  There are many tools to do this and I will discuss two potential opportunities.  The other tools will depend on the client situation.

1)   Debt Restructuring:

Financial planners can work with the client to see if they can use their equity in the house to pay down high interest debt and start planning to save for the future. There are many products that can be used for this purpose depending on client needs.  One example is MARM.

 Modified Adjusted Rate Mortgage (MARM) can help you in following ways: The modified ARM rate is based on cost of saving index and is significantly lower than 30 year fixed rate and when planned with a financial planner can help in following areas.  The saving index does not increase as fast as the other interest rate index.

Can Significantly Improve the borrower’s overall financial picture.

You have flexibility of payment option.
No Credit Scoring for LTV of 80% or less.
True BI-weekly re-amortization can reduce your total interest payment for the loan.
The reduced payment can be invested for retirement with a financial planner.  MARM is a good financial tool because.
You can use the cash flow to fund 401 K or other investments.
Pay off high interest rate credit card debts.
Pay down second mortgage
Start a college fund or cover tuition fees.
Money for improvements when it is most needed.
Low payments and so may qualify for higher priced house.
Consolidate debts
Pay for unexpected expenses.

2) Real Estate Investment:

Why keep your clients just in the stocks and bonds.  They might be ready at some point when they can invest in real estate properties with significant passive cash flow and price appreciation.  Real estate investment offers following benefits.

1) Leverage:  Just like buying stocks in margin, real estate can be purchased with 10 % down and hence a 3 % appreciation in price can result in 30 % increase in the investment.  The down side is that the transaction costs are higher than stocks and hence real estate needs to be a long term investment.

2) Tax Savings:  The real estate depreciation offers current tax savings for your clients

3) Cash Flow: Real estate investment can be a good source of passive cash flow.

We can provide you with real estate consultants and property management companies who can help manage the real estate portfolio of your clients.

Not want to deal with real estate hassle. How about real estate notes with good return and secured by real estate? Contact us.

Mortgage@loan-123.com