Advice from a Certified Financial Planner on Current Mortgage Interest Rates
Apr 16th, 2008 by Michael
As a Certified Financial Planner I have been asked about the current mortgage interest rates and if I believe they will continue to rise. As a certified financial planner I don’t try to forecast rates.
What I do for my clients is highlight is that no matter what the current mortgage interest rates are, it’s expensive having a mortgage. The interest on a mortgage is non-deductible and you need to first earn an income, pay the tax, pay the interest to the bank, and then finally the remainder of the mortgage.
Even though the current mortgage interest rates are costing the clients more at the end of the day the story is still the same. The fact is that you’ve got to earn the money, pay the tax. You then pay the bank their interest, and then pay the loan. Usually it equates to about three dollars for every dollar borrowed.
What I do as a certified financial planner is to work with a client to get the mortgage paid off as quickly as possible. I do this in a very unique way that has proven success stories.
Essentially I just want to highlight that regardless of the current mortgage interest rates it is still possible to get the mortgage paid off quickly and this is the best way to beat the banks on interest rates. That is my focus as a certified financial planner.