Being fair, privileges, and how I almost died from dehydration.

I grew up with an overdeveloped sense of fairness, mostly stemming from my little brother and I competing on almost everything.  As a result, many things seemed unfair but only a couple things raced my engine compared to my friends.  Yes, I was frustrated having to sit at the front of the bus so the driver could keep an eye on me.   Nothing more than a smile, and she suspected I was up to no good at all.  It must have been the gleam in my eye! 

In those years, after recess the teacher would be guarding the water fountain.  We called her the water Nazi, as you could not mess with her system.  You stand there in line waiting patiently till it was your turn and even before the water hit your mouth she was counting to five and heaven help you if you did not walk away when she said FIVE!  How much can you drink from a little stream of hardly pressurized water in that time frame?   What is my issue you ask?  This is the only fair way to ensure everyone gets the same and everyone gets a turn.  I am not a fan of communism!

Why did I think this was a load of bull?  Some boys were sitting reading comic books or trading cards, and some girls were playing with their dolls or playing marbles.   ME?  I was running, playing football, soccer, wrestling, and being chased by much older girls who sometimes wanted to beat me up, and other times just wanted to kiss me.   I was so very easy on the eyes back then.   Toot, Toot!  Yes this was me blowing my own horn.  I often say that if you don't blow your own horn there will be no music.

Now I ask you, why would we all get the same amount of water, if we were not all doing the same activities?  How is that fair?   I wanted things to be fair, and I had sweat dripping down my forehead, should I not at least get an 8-second count for water? 

I still hold that philosophy dear to my heart, and it encompasses my clients as I expect they should be treated fairly and have all that is available to them.

How do I really define fair for my clients?   Not just ensuring they have options from all the lenders, but making sure they understand the fine print associated with that rate and product.

If the mortgage rate is five seconds, then the fine print is the rest of the equation.  Yes, it's the job of a mortgage broker to help you watch the fine print!  If you are focused just on the 5 seconds all else falls away.  A mortgage broker can help you focus on mouth placement, suction, angle, approach velocity, stopping power, the pull away, and angel and trajectory of the water flow with the mutual goal of getting your fill of as much water as possible.

It's true that securing a low interest rate can take years off your mortgage, but equally important are the terms of your contract. If you are just looking at the rate, what is in the fine print?  Can you transfer the mortgage?  Can you port the mortgage?  Can you pay it down any faster?  

This is where an experienced mortgage broker can make a difference.  The review of any restrictions or potential penalties on the mortgage that often end up costing you far more than a small rate difference.

Should you care about transferring and porting your mortgage?

If you read a post or two ago, we talked about how porting as an option is fundamental in making sure you can take your rate with you.  Yes, this is all the more important if the rates on the market currently are higher than what your mortgage rate is.

Why would you care about Prepayment privileges?

Mortgage Prepayment privileges go a long way toward paying off your mortgage faster, but you cannot pay off as much as you like whenever you want.  Yes I know it seems so unfair, however most mortgages limit how much you can pay off early because it decreases how much money the bank can make, or thought they were going to make.

In the fine print are mortgage payout penalties.

Mortgage payout penalties for a no-frills basic mortgage can be a percentage of the outstanding mortgage.  3% to break the mortgage early should not be taken lightly as this can be very expensive.  They could be based on the bond rates, or interest rate differentials from posted to what you have.  It could be a collateral charge mortgage, and all these factors can change how much you pay out by large amounts.

Every lender is different with their own take on the rules, and each with different investors to answer to.  If the average mortgage planner deals with over 50 lenders, you should know that each one has a product lineup of mortgage products that range in short-term, long-term, variable, cash back, open and closed. Having over 300 mortgage products at your disposal allows you to put every unique client into a product that is best suited to their needs. Knowing it's easy and dependable will have you back doing what you love as soon as possible.

This way, when you hear about the 5-second rule you know it's more than just how long food can be on the floor, or how long a child that feels like he is stuck in the middle of the Sahara, can drink from a fountain.  The rules put forward are the same for everyone, but how we structure, where we submit, and how we use those five seconds are so very important.

Get it touch with me at 403-807-8779 if you want to make the most of your 5 seconds.