Mortgage

Dustin LaPorte is also a licensed Mortgage Officer with Coastlend Mortgage located near Daniel Island, SC at 2265 Clements Ferry Rd. Suite 208, Charleston, SC 29492 South Carolina. The rates he can get for his clients are way below the National Average. He stays ahead of the competition because the firm's low overhead cost and the software they use to anonymously shop over 30 lenders all at once. Each bank changes its rates throughout the day depending on the market. Without this technology, it is impossible for you to know with which leader has the best rate at that moment in time. Even if you spent a week applying with 30 lenders, by the time you received all their quotes and reviewed them, their rates would have changed.

These rates below are NOT Dustin's rates. They are the National Rate Average (Dustin's competitors). Dustin's rates are usually considerably lower than these rates. 

If your current mortgage rate is higher than the National Average, call Dustin to see if you are eligible to:

• Lower your rate
• Pay no closing costs - by committing to stay with the new lender for at least 9 months, the lender may pay all of the cost to refinance 
  
• Refinance without going deeper in debt
• With the new lower interest rate, shorten the term of your mortgage to get out of debt faster.

Because your rate is determined by your risk profile, your rate may be higher or lower than the National Average.

Now is the time for you to focus on lowering your interest rate and term to break from the bondage of debt.

Let's destroy some of the myths you have been taught.

Tax Deduction Myth: People avoid paying off their mortgage because they want the tax deduction. Due to new tax change, over 90% of all Americans no longer get to deduct the interest on their mortgage. That $1,500 monthly mortgage payment ($18,000 yearly) may be costing you $24,000 yearly (If you have to make $24,000 to take home $18,000 after taxes). Even if you did get to deduct the interest, it is usually not in your best interest to be in debt. 

Investing/Debt Myth: Most people think of debt separate from investing.  Start looking at investing and debt as the same vehicle just going in the opposite direction. Example:  Tom believes he is making money on his $10,000 investment for it earned him $300 this year. Tom sees how much his projected $10,000 would be worth at retirement and does not want to lose that money.  In Tom's mind, debts have nothing to do with investing. Reality check, debts have everything thing to do with investing. Tom's $10,000 investment could be used to pay off his $10,000 credit card.  His credit card is costing him $2,300 yearly in interest. His $10,000 investment really losing Tom $2,000 ($300 earned -$2,300 lost in interest paid to the credit card company). Net worth is calculated by adding up all your assets then subtracting out your liabilities (debts).  Do the same calculation with Tom's investments. Tom accumulated $10,000 in investments and accumulated $10,000 in debt. He has a $10,000 up (asset) and a $10,000 down (liability), when you look at the two together you see he really has nothing ($10,000 - $10,000 = Zero).  In one year, one makes $300 the other costs $2,300. The end result is a loss of $2,000. Tom never sees that loss because he does not consider how much he is paying each month to the credit card company. All Tom sees is that his investment went up $300 and his debt stayed about the same.  If Tom just cashed in his investment and became debt free that former credit card monthly payment would cease to exist. Tom then could start investing monthly what he used to pay in credit card payments; Thus, creating an even larger amount in retirement. He went from having $10,000 towards retirement to now investing over $2,300 annually ever year to retirement, he did this and it did not cost him anything from his monthly cash flow.

Investing in Bonds Myth: You hear advisors telling their clients to invest into bonds to reduce risk. It sounds smart until you factor in what the bond is paying you as compared to the cost of your debt. They think they are helping you save for their future while in reality they are losing you money if the interest rate on your debts is higher than what you are earning on your bonds. Wake up advisors and see the whole picture. By eliminating your mortgage expense, you may be able to retire early. Example: A person has $100,000 in savings earning only $1,000 yearly while he has to pay $1,000 monthly on his $100,000 mortgage. In order to be able to retire he needs to lower his taxes and living expenses by $15,000 yearly. By paying off his mortgage that saves him $1,000 monthly ($12,000 yearly) in after tax financial pressure. Being in a 20% state and federal income tax bracket, he has to make $15,000 yearly to take home $12,000. By paying off the mortgage that is like earning $15,000 yearly and netting $12,000 after taxes. Thus, by paying of the mortgage he is able to retire. In order to pay the mortgage with the interest earn on a bond or CDs paying 2%, he would have to invest $750,000 in a bond or CDs.  $750,000 X 2% = $15,000 in interest and after taxes at 20% you take home $12,000.  By paying off the house that frees up the $750,000 to be invested in higher earning but higher risk investments.

Debt Free Sooner Myth: I want you to be debt free and I will work to lower your interest rates. However, with today's extremely low interest rates, you may want to invest your way out of debt. Example: Two people with the same loan amount same interest rate and term and both have $1,000 monthly to invest or pay down the mortgage. Person #1 decides to pay down his mortgage and Person #2 decides to invest the extra money.  The day Person #1 becomes debt free will also be the day Person #2 could be debt free if he cashed in his investment and pay off his mortgage assuming he earned after taxes the same rate of return as the interest rate charged on the mortgage. What happens if Person #2 earns more than then rate the mortgage is charging? Person #2 (the investor) could pay off his mortgage sooner than Person#1.  What if they both lost their jobs before paying off their mortgages? Person #1could lose his house if he had no money saved to make the mortgage payment. Person #2 withdrawal from his investments to make the house payment and not lose the house.