Existentialism via your Mortgage

Mortgages brokers are essentially salespeople. I've been doing this for a couple of years now and I can honestly say I don't think we really see ourselves as that though. Maybe it is because we don't sell our clients anything tangible. We sell percents, theoretical savings, education and insurance. If I want to continue the sales pitch- peace of mind. Salespeople are usually equated with cars, televisions and furniture. Not future savings.

We don't sell you houses; that is the profession of Realtors and a good one is worth their weight in commissions. We definitely don't buy you houses as ultimately it is your name on the title deed. You are the home-owner, no matter how big or small.

I find you the right lender for your needs. The lender is the one who will probably give you the largest amount of money in your life. And while you don't technically see it in nice crisp $100 bills like in the movies, you do become responsible for it and most importantly, paying it back.

that's a whole lot of house right there...

So what is a mortgage broker? As I mentioned earlier, we sell you numbers and savings. If it helps to be more tangible, we find you the right lender for your needs.You don't pay us to do that; instead the lender pays us.

I think the biggest question out there is 'Why bother?'.

Why use a mortgage professional

Just asked this question today.

Mortgage Math or How to save $17,529

Mortgage Math or... How to save $17,529 dollars*.

You like math? I don't. All those numbers mixed in with the alphabet...it always seemed fishy to me but apparently, if you do it right, it can allow us to put a man on the moon or shoot a camera to Pluto, a gazillion miles away. Which is odd as sometimes my computer can't find the Internet signal from the basement of my house.

And bank math? It takes a special type of person to want to really sit down and figure out where you are in the future regarding retirement savings, especially if you are only given a 30 minute appointment.

I, personally, have lots of trouble ever imagining myself living mortgage free, it's easier to believe I am paying rent for the rest of my life. It's just too far in the future for me. It may as well be Pluto.

But one of the advantages of a mortgage broker is if you ask, I will show you the savings when you refinance or switch your mortgage. One of the more frustrating issues for people looking to refinance or switch is the penalty payout hidden in the fine print of most fixed mortgages. It can run into the thousands of dollars and it is a hard pill to swallow, particularly if you are only going to save 1% on a new interest rate. That's usually enough for people to walk away from looking further.

On Networking

I get it. We live in the age of social media which means social marketing which means social networking. Everything we do on the computer, one of the most non-social activities we partake in short of masturbating is considered a 'social' activity of some sort.

And if you are in sales, be it cars, telephones, mortgages, financial planning, laptops, Amway or self-publishing you are continually being told "you have to get out there and market yourself!"

I was approached recently about marketing my ...talents... on a website. It was a great place for people to see that I am someone who was willing to pay X amount per month to prove that I am a mortgage broker. Once my name was on that list, it gave me the opportunity to be lumped in with 18 other brokers in my area who were getting their name out there.

Yes, a lot of my social contact is through the computer - Facebook is still my go-to but it's primarily for my true friends and family. I'm not too keen on friending someone because we are in the same industry.

I'm also on LinkedIn which is apparently like Facebook, only it is more acceptable to reach out to complete strangers and friend them. I don't know why Jim from Atlanta Mazda wants to link with me but whatever, that's what I'm supposed to do. Keep it professional.

I was on Twitter but that seemed sad/funny. It was like being at a convention of Late Night joke writers. Perhaps because that was where my taste ran to. If you tweeted something funny, I'd follow you. If I wanted other people to follow me, I'd tweet at someone famous and all of their followers would read it. Then some would follow me. Once I realized I was saying I tweeted someone as if it was a valid form of deep interaction, I deleted my account.

I don't have snapchat. My understanding is it allows you to send a picture then it will delete immediately after being opened. This seems like something all fathers should make sure isn't installed on their daughter's cell phone. I can't imagine how many dick pics have been sent out in an odd new-age social media flirtation ritual.

Pinterest seems like every art/craft teachers' wet dream. It seems to be a website that allows you to see all the cool and cheap shit you won't ever do with cinder blocks or pallets. I don't know how that helps me sell you a mortgage.

I'm digressing... social media. Point is, I'm not very good on social media. I like my blogs, I like Facebook. I don't use it too often to market myself and that would make most networking authorities cringe. I stand by the best referral is word of mouth. I don't know of anyone who was approached because they tweeted something.

But it's a changing battlefield apparently. I have to get on the social marketing/networking train or step off the tracks.

Another Case for Variable Rate Mortgages

Questions found on the Internet that may be relevant to people who read this blog.

Hi anonymous Internet Advisor...

I am currently coming up to the end of my first mortgage term. I went with a 5 year fixed term @ 3.45%, which at the time was a great rate. My bank is now offering 2.25% variable, which would bring my mortgage down by $150/month. I've never been a risk taker financially, which is why I went with the safe bet on the original term. However, I am starting to wonder what the real level of risk is, and if it might be to my benefit to switch to the variable rate, since it is so low right now.

I guess what I am really wondering is, how often do variable rates change, and what are the chances that they would jump way up. I am in Canada if that is relevant.