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Focus on Money: Set up Mortgages as Part of Your Financial Plan and Money Goals

Updated: Feb 16

Introduction: Welcome back to The Amber Stitt Show, where we discuss strategies for financial success and personal development. In today's episode, we're diving into the world of mortgages and how they can play an integral role in your overall financial plan and money goals. Our special guest, Richard Simon, co-founder of AZ Lending Experts, will be sharing his expertise on this topic. Let's dive in!

Understanding Mortgage Planning: When it comes to securing a mortgage, it's important to view it as more than just an interest rate. Richard emphasizes that a mortgage is a significant investment and debt, one that should be treated as part of your retirement planning. By integrating your mortgage into your overall financial plan, you can unlock its potential as a valuable tool.

The Power of Long-Term Mortgages: Richard reveals that longer-term mortgages, such as 40-year mortgages, can provide unique advantages when used wisely. For instance, switching from a 30-year to a 40-year mortgage can save you $500 a month, which can then be strategically invested in retirement vehicles. By focusing on higher-return investments instead of mortgage payments, you can potentially maximize your wealth over time.

Navigating the Current Real Estate Market: Given the unpredictability of the real estate market, Richard shares insights on how his clients, especially physicians and business owners, have been discussing longer loan terms to adapt to the current situation. The rise in inventory due to the post-COVID environment has injected uncertainty for buyers. This has led individuals to consider extended loan durations to maintain financial stability during market fluctuations.

The Importance of Personal Preference and Financial Goals: While longer loan terms present various advantages, Richard acknowledges that everyone's financial situation is unique. Some individuals prioritize the idea of a debt-free retirement and prefer shorter loan terms, such as 15 or 10 years. It ultimately comes down to personal preference and aligning your mortgage strategy with your financial goals.

Alternative Mortgage Payment Strategies: Richard shares an alternative approach for managing mortgage payments. Making bimonthly payments on your mortgage allows you to make an extra full mortgage payment each year, which can significantly reduce the mortgage term by six years. However, he suggests considering the opportunity cost of these extra payments. Instead of redirecting those funds towards the mortgage principal, investing them in a separate vehicle can potentially yield higher returns, leading to greater financial gains at the end of your mortgage term.

The Importance of Customizing Insurance Planning: Transitioning to an important aspect of financial planning, Richard discusses the necessity of customizing insurance products to individual needs and health. He stresses the significance of avoiding pressure-based sales tactics, especially when it comes to physicians who are often urged to buy insurance products during specific times of the year. Richard encourages a customized approach that truly aligns with each client's unique circumstances.

Conclusion: Throughout this episode, we've explored the various aspects of mortgage planning, real estate trends, and the importance of integrating mortgages into your financial plan and money goals. Richard Simon's insights have shed light on the potential benefits of longer loan terms, alternative mortgage payment strategies, and the significance of customizing insurance planning to fit individual needs.

Remember, financial planning is a personalized process, and it's crucial to align your mortgage strategy with your specific goals and circumstances. Be proactive, seek professional advice, and embrace the opportunities that mortgages can offer as part of your comprehensive financial plan.

Thank you for tuning in to The Amber Stitt Show! Make sure to subscribe to our podcast for more episodes on achieving peak performance and living a fulfilled life. Until next time, keep chasing success and cultivating a prosperous future.

Timestamped overview

[00:01:27] Post-COVID focus on proactive Pathways for Peak Performance. [00:04:04] Business journey: mortgages, ups, downs, philosophy, retirement. [00:09:43] Longer terms can be a great tool. [00:12:49] Save money by making bimonthly mortgage payments. [00:13:55] Counseling clients about their primary residence and finances.

For more mortgage tips, please follow Richard and his team at @AZ Lending Experts, LLC, and their profiles on Instagram, YouTube, and Facebook.

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