Bob & David Hanson - The 1% Mortgage Payment

Experts

by Jodie Littleton

April 2005

The real estate market is going nowhere but up, which is great news if you’re in the mood to sell. But if you’re a buyer looking for that dream or vacation home, rising costs may have put your purchase out of reach. What if you could buy a bigger home than you think you can afford, with a smaller mortgage payment each month? What if you could actually make money by buying a home? A call to Bob Hanson could put your dream within your grasp.

For years, Hanson has helped buyers realize that there are options to the typical 30-year fixed rate mortgage. A branch owner for the country’s largest brokerage firm, he and his oldest son, David, specialize in the guaranteed one percent mortgage payment, which gives the consumer more buying power, lower monthly payments, and the resources for a more financially secure future.

“Most loan programs at banks do a good job of convincing people of 30-year fixed rate mortgages, and they can charge a premium to lock in that rate,” Hanson explains. But that 30-year mortgage, a relic from our grandparents’ days, often costs more than the monthly payment in terms of putting your money to work for you. Homes, especially those in the Annapolis area, appreciate in value, and a typical mortgage often doesn’t allow the homeowner to capitalize on the increase.

Hanson’s approach, however, allows people whose property value has increased to cash in. “They can harvest money out of their dormant equity, out of the walls of their houses, and put it where it can do more good, like buying more real estate,” Hanson says. “The dormant equity in a home contributes nothing to its value,” he adds. “Getting that money out of the home is like finding thousand-dollar-bills stuffed in your walls. It makes the money accessible to cover emergencies, or puts it to work to buy income-producing properties.”

“Often,” Hanson says, “our clients are able to harvest $100,000, $200,000, or more from their homes with no change in their mortgage payment. Frequently it even goes down! That enables homeowners to invest that dormant cash where it can further appreciate.” The guaranteed one percent payment also drastically increases the consumer’s buying power—often a buyer can purchase a $500,000 home for a smaller monthly payment than a $300,000 home would command if financed through a typical 30-year fixed rate plan, or refinanced to capitalize on the home’s equity. This allows for even more appreciation of property value, and the opportunity to realize a larger profit if the owner decides to sell.

Using a mortgage wisely can also create financial security, says Hanson. “The difference between someone who uses a mortgage as a financial tool to create wealth outside the home and someone who just pays the mortgage to someday maybe pay off the house can mean the difference between just getting by in retirement and being able to live lavishly,” he explains.

A Philadelphia native, Hanson graduated from the Naval Academy in 1973 and dreamed of living and working in the Annapolis area. He and his wife, the parents of five children, live in a large home on the Severn River. He enjoys helping area consumers purchase their dream homes and finds Annapolitans “intelligent and easy-going people who are a pleasure to work with.” “I love Annapolis,” he says. “I get to go to Navy football games, and I love going to the City Dock for sushi and oysters.”

Hanson’s Web site (www.MinPayment.com) explains the principles of the one percent payment and includes handy loan and payment calculators, success stories, and links to recommended reading. In addition, Bob and David Hanson present a radio program, “The One Percent Mortgage Solution,” on WBIS 1190 AM, Wednesdays from 9 to 10 a.m. and again from 5 to 6 p.m.

For more information or to schedule a mortgage consultation, contact Bob or David Hanson at 1-866-MIN-PAYment (1-866-646-7296), or visit www.MinPayment.com

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