An "Obama Nation" Brings New Life to Mortgage Planning

by Florida's #1 Mortgage Planner on November 5, 2008

Obama Presidency Pushes Need for Strategic Mortgage Planning

Ever notice how Obamanation, a term being thrown around a lot, sounds eerily similar to abomination?  OK, we won’t dwell on that, but let’s look at Barack Obama’s past and how his actions speak for him more than his words.  Then we will relate them to how that equates to an increased need for using a genuine mortgage planner.

Barack Obama promised tax cuts to “95% of Americans”, and then started defining that as those making less than $250,000.  If you could cut ‘BS’ with a knife, his words allow for plenty of cutting as it didn’t take long before that 95% became those making less than $200,000, then those making as little as $150,000.  So, you see, he is clearly making it up as he goes along or is basing his promises on crappy research and we know that got Bush in huge trouble in Iraq.

Putting that aside, let’s look at Obama’s track record when it comes to voting for tax cuts at anytime, even recent history…

  1. Obama voted on increasing the taxes on those making as little as $42,000 .
  2. He has voted repeatedly against tax cuts, at least 23 times.
  3. Barack TWICE voted against raising the death tax to $5 million from the $1 million (Feb. 13, 2008 and Mar. 21, 2007) (08-S050 and 2007-083)
  4. Voted against reducing the Alternative Minimum Tax (AMT) and also voted against repealing the AMT altogether. (Mar. 13, 2008 and Mar. 23, 2007) (08-S078 and 2007-108)
  5. Voted against repealing the estate tax (death tax) (June 8, 2006 – 2006-164) and even against the permanence of the tax cuts put in place (on January 1, 2011, the limit drops back to $1 million and the tax rate goes back to 50%) (Aug. 3, 2006 – 2006-229)
  6. Voted to repeal the capital gains tax cuts (Feb. 2, 2006 – 2006-008) and also TWICE voted against retaining reduces taxes on capital gains and dividends (Feb. 2, 2006 – 2006-010 and Nov. 18, 2005 – 2005-347)

I could probably go on but you can see that his actions clearly speak much louder than his words, but his words got him elected by the naive American public.  You clearly see that he was voting against tax cuts and voting to raise taxes even while he was promising tax cuts during his campaigning.  The good news is that, at least until Barack Obama and his buddies repeal the mortgage interest tax deduction, strategic equity management will play a much more important role in strengthening each American family’s finances.

Now, more than ever, the tax deductibility of your mortgage can be used to strengthen your financial position overall.  As the Democrats manage to raise taxes more and more, the ability to make substantial gains using leverage are more pronounced, especially when the markets do rebound, both real estate and stocks.  If you have fallen prey to those money merge accounts and other mortgage acceleration salesmen, chances are you are going to regret paying down your mortgage as the taxes start eating you alive.

Now, it the current environment, it is difficult to get a new mortgage, and as a result, many mortgage professionals have added titles they are not, such as “mortgage planners.”  Many also profess and even carry designations, but remain lacking in real expertise and will sell you what you want instead of what you truly need.  Money Merge Accounts and other mortgage acceleration programs are one case in point as you can see that even the “mortgage gurus” have become advocates of these despite their problems.

That means you have to take your time and do your research and find a genuine mortgage planning professional that can assist you in finding the best overall solution for your specific situation.  That means that it takes more than a general discussion, or even a questionnaire beyond the mortgage application itself.  Mortgage planning should be a thorough process that confirms the final solution as being the best, along with education on the rules of money and a full understanding of what and why you are implementing the final plan.

As I have pointed out in the past, I am developing a new service that should be available nationwide to a limited number of candidates each month and this service will not be available to those I originate loans with.  I am still finalizing the details and developing the dedicated website, but look for an announcement in the next month or so, as I am hoping to launch it no later than the beginning of the new year.

{ 1 comment… read it below or add one }

BawldGuy November 6, 2008 at 2:42 pm

Words to the wise.

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