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A Tale of ANOTHER Two Borrowers (also based on a true story)

Borrower “A” owned a two-family house on Long Island. Since rates were low, he wanted to refinance. He called his bank and received a rate quote. Thinking rates were going to drop more, he decided to wait and see.

Borrower “B” owned a two-family house on Long Island. Since rates were low, he wanted to refinance. His financial planner told him to call his trusted advisor, Warren Goldberg, a Mortgage Planner he’s been working with for years.

Borrower “A” watched as rates dropped, but was waiting for “the bottom.”

Warren interviewed Borrower “B” and learned about his total financial situation. Warren asked the right questions and learned that Borrower “B’s” employer was contemplating a relocation at some point in the future. If his employer relocated, Borrower “B” wasn’t sure what he would do. He loved this house, did not want to move, and had no intention of selling it.

Warren acknowledged that rates might drop further.  However, since he had no intention of selling his home, if Borrower “B” procrastinated, and if his employer ever forced him to relocate, this house would no longer be considered his primary residence. Once he moved, his home would be considered an investment property and investment properties have higher interest rates. Based on the information provided and Borrower “B’s” intended use for the foreseeable future, Warren advised Borrower “B” to refinance now and lock into an excellent rate, even if it wasn’t rock bottom.

In the mean time, Borrower “A” was still waiting for interest rates to hit bottom. Eventually, his employer did relocate. Borrower “A” found a new house near work and called his bank for a mortgage. A bank salesperson promised him a “great rate” and took his application.

Borrower “B” closed on his refinance. Eventually his employer did relocate. Reluctantly, Borrower “B” found a new house closer to work.  He again called Warren, who helped him structure a suitable loan to complement his financial needs, goals, and his plan to keep his current house.

Borrower “A” closed on his new house at a “great rate;” an adjustable rate mortgage. However, since he planned to live there for at least 15 years, he soon realized his “great rate” probably wasn’t so great. To add insult to injury, since his two-family house was now an investment property, and rates were rising, he was no longer qualified to get the best rates. He was stuck with two bad loans.

Borrower “B” closed with a 30 year fixed rate loan at a truly great rate. And since he planned to live there for at least 15 years, his current “great rate” would always remain great. He now had two properties with two perfect loans, freeing up cash flow that he could devote to attaining his other financial goals.

Don’t entrust your financial decisions simply to a bank employee looking for a sale. By working with this Mortgage Planner, you’ll ensure your mortgage complements your financial needs today, and helps you attain your financial goals tomorrow.


Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.


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