One of the greatest financial tools is tax deductable mortgage debt. For someone in a 25% marginal federal income tax rate with a 7% state income tax rate, a mortgage with a fixed interest rate of 5% will have an after tax interest rate of 3.4%. When fighting to get out of debt, it is much easier to make progress paying down a mortgage costing only 3.4% after tax vs. an unsecured credit line at 10%, or even a car loan at 6%.

A second financial tool is compounding interest. Take for instance a $100,000 mortgage financed over thirty years at a rate of 5.5% with a monthly payment of $567.79. If payments are made on this loan over thirty years, the total amount paid will be $204,405 (without considering the tax benefits of a mortgage). Although that seems like a lot, the same $100,000 invested over the same time frame earning only a 4% rate of return will provide $331,349! How can someone borrow at 5.5% and invest at 4% and make a spread of $126,944? That is the value of compounding interest.

As a debt and equity advisor, one of the common mistakes I see is people focusing on paying down their mortgage before they have paid off their unsecured consumer debts. Personal finance most often times is a reflection of financial habits. Many people in the habit of making extra payments on their mortgage simultaneously carry revolving debts.

Although they are making progress on paying down their home loan, most often times the same person ends up refinancing their home loan to consolidate consumer debt down the road, erasing the progress they made towards paying down their mortgage. After a few times going through this cycle, each time thinking it will be the last, many realize they have developed unhealthy financial habits that need to be addressed.

If you, or someone you know, could use a mortgage review, call my office and schedule a time. A fifteen minute review will help ensure you have a properly structured mortgage, and that your debt, cash-flow, and equity objectives are on track. A long-term mortgage strategy is one of the most important financial decisions you will ever make. Do not leave this decision to amateurs.

My staff and I had the humbling opportunity to deliver each of these meals to families and houses desperately in need this Thanksgiving. Due to your generous donations we were able to put food on tables that would’ve been bare or replaced mac n’cheese with a Thanksgiving Feast. Truly hearts were touched both in and outside each household. We would like to pass along the heartfelt tears of gratitude from each of these families back to YOU. We only wish we could fully express the feelings and emotions we experienced with each of these families.

May we once again say Thank You to all who donated and experienced the gift of giving this holiday season. We wish you all a happy and safe Thanksgiving and we hope the holiday finds you in the company of family and close friends.

Happy Thanksgiving from your City Creek Mortgage Family.

The solution to this dilemma is a no-cost loan.  This is a loan that will have a slightly higher interest rate than a loan that has fees, but all of the closing costs incurred are paid by us, not the homeowner.  That way, the principal balance of the new loan can start out the same as the principal balance of the loan being paid off.  There is not any equity lost, allowing the homeowner to maintain their strategy of paying down their mortgage, while still enjoying a lower mortgage payment.

When comparing a mortgage option that has closing costs vs. a no-cost loan, the loan option with closing costs will have a higher mortgage balance to cover the closing costs incurred.  If you take a higher loan amount at a lower interest rate, and compare that with a lower loan amount at a higher interest rate, the results can be astonishing.  Because the no-cost option has a higher interest rate, a greater portion of the payment will be tax deductable.  On an after-tax basis, the breakeven point is typically much more than TEN years before the homeowner will have benefited by paying closing costs to obtain a lower rate. 

As a Certified Mortgage Advisor, my role is to analyze each of my client’s goals and objectives, and make recommendations as to the best solution for their situation.  In most cases, I suggest the no-cost option.  We have a program that compares and contrasts different levels of closing costs vs. interest rate, and projects a breakeven point for each option.  No-cost loans are available for home purchase loans as well as refinances.  There are restrictions to no-cost loans; however, most homeowner’s loans will qualify (subject to credit, income and appraisal qualifications).  

To see if you would benefit from a no-cost loan, call and arrange a 15 minute mortgage review.  I will review your overall mortgage, debt, and equity situation, and tell you if a change can and should be made.   As a trusted advisor to hundreds of families, you can be certain you will receive honest and professional advice.  You can reach me by calling 801-501-7950, or by email at mike@citycreekmortgage.com.

Below is a list of items still needed to feed our families. In addition to the items, we’re also excepting gift cards to local grocery stores for purchase of needed items. Feel free to drop off your items at our office Mon-Fri, 8am to 5pm. Thank you so much for your help!

• Turkeys or gift cards for turkeys
• Gravy Mix
• Cream of Mushroom (canned)
• French Onions (canned)
• Mini Marshmallows
• Frozen Pies

Questions feel free to contact us at 801-501-7950, ask for Brad or Jodi.

This Saturday we will be collecting items for our Thanksgiving Food Drive. Come drop by City Creek Mortgage between 8am -11am. We will be serving a FREE Breakfast for all those who come and donate as our way of saying THANK YOU for helping those in need this holiday season.

Don’t Forget! Put it on your calender and we will see you Saturday morning!

For Details on FOOD ITEMS that we are requesting click on the turkey below!

Click on Me for Food Items Needed!

Just think – What if YOU were in NEED?

We will be celebrating 2 incredible milestones. First it is my 10th anniversary of coordinating the blood drive and secondly we will cross the 1000 pints of blood collected mark. So many lives have been improved and saved because of all your generous donations and we want to celebrate!

Please call me today at 801.501.7950 or email me at tobi@citycreekmortgage.com to schedule your appointment.

Sincerely,
Tobi Roberts
Your Blood Coordinator

Click here for more information and details.