Financial Advisors with The Desser Group at J.P. Morgan Securities share key insights.
Buying a home can have a long-lasting financial impact. Just as you make investment decisions based on the benefits and long-term risks, it is important to treat mortgage decisions the same way.
“Making mortgage decisions without fully considering your financial and life goals may limit your options,” says Bill Desser, Managing Director and principal of The Desser Group. The group partners with J.P. Morgan’s Mortgage team, which is deeply familiar with the complex balance sheets and non-standard income flows of wealthy individuals.
“The mortgage landscape continues to evolve, and clients are looking for options beyond traditional mortgages,” says Dan Alter, Head of the J.P. Morgan Securities Mortgage Advisory team. “As one of the largest and most respected jumbo mortgage lenders, we look across a client’s entire balance sheet to optimize and structure debt to provide innovative financing strategies designed to fit each client’s personal circumstances. Additionally, our mortgage advisors have local market expertise in financing LA properties, particularly related to the nuances of condo and co-op lending requirements.”
Staying competitive in LA’s housing market
“One of the first things I tell our clients is the importance of being market-ready when the right home comes along,” says George Epstein, Head of J.P. Morgan Securities Banking & Lending. J.P. Morgan provides buyers with a fully underwritten conditional approval that goes above industry standards.1 “Having a pre-approval in hand enables buyers to move fast when they find the property they desire.” He added, “We can expedite the closing process and execute quickly, providing all loan documentation is submitted timely.”
Making an all-cash offer can give homebuyers an edge in a competitive bid situation, but owning a home outright may not be the best use of financial resources. A technical refinance—arranging for a mortgage after purchasing a property for cash—may be an alternative. “Some of our clients have bought homes for cash using a securities-based line of credit, and then refinanced within 90 days of the purchase,” Mr. Epstein points out. “Working with J.P. Morgan, the homeowners were able to refinance the home, pay off the credit line and lock in competitive rates on long-term mortgage financing.”
Consider a Pledged Asset Mortgage
“One option clients have taken advantage of is the J.P. Morgan Pledged Asset Mortgage” says Ryan Stewart, Executive Director and member of The Desser Group. This mortgage strategy allows clients to pledge assets in their J.P. Morgan portfolios in lieu of a cash down payment. With the securities and home as collateral, borrowers may qualify for up to 100% financing. Assets can also be pledged on behalf of a qualified family member (parent, spouse or child), without having to co-sign a loan. “We’re seeing a number of clients turn to the Pledged Asset Mortgage as part of their estate planning strategy,” adds Mr. Stewart.
Structure your ownership to your advantage
Your real estate investments and the way you finance and structure them are a significant part of your financial plan. There may be compelling reasons, beyond privacy and liability protection, to own a property in a revocable trust or limited liability company (LLC). Using an LLC, for example, may also simplify the administration of your estate.
“One of the advantages of working with our team is access to our Wealth Management partners,” says Bill Desser. “They’re former tax and estate attorneys, and they’re always ready to meet with our clients to discuss how best to structure assets in light of a client’s estate and financial objectives.”
To learn more about The Desser Group and mortgage financing, please contact: 310.201.7893 or visit www.jpmorgansecurities.com/desser
Dan Alter
J.P. Morgan Private Bank
Head of J.P. Morgan Securities Mortgage Advisory
NMLS 529872
1 Financial information must be refreshed after 90 days.
JPMorgan Chase Bank, N.A. Member FDIC
Not a commitment to lend. All extensions of credit are subject to credit approval.
“J.P. Morgan Securities” is a brand name for a wealth management business conducted by JPMorgan Chase & Co. and certain subsidiaries. J.P. Morgan Securities offers investment products and services through J.P. Morgan Securities LLC, member FINRA and SIPC. Bank products and services are offered by JPMorgan Chase Bank, N.A. and its bank affiliates.
J.P. Morgan does not provide tax advice. Your lawyer or accountant can advise you on the appropriateness of a specific strategy in light of your own unique circumstances.
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