Be a savvy mortgage consumer

Recently I saw a news article about a couple that had purchased their dream home with an adjustable rate mortgage (ARM). When the initial low term of the mortgage was over, the payments nearly doubled, and the homeowners couldn’t afford the higher amount. The wife was quoted as saying that she hadn’t understood the terms of the loan. Now, they’re facing foreclosure.

This is an all-too-common circumstance, and speaks to the importance of understanding absolutely everything about any loan that you take out—especially a loan that uses your home as collateral. Don’t feel stupid because you have questions. Ask them and make sure you’re satisfied with the answers. If a mortgage broker or loan officer demonstrates impatience with your questions, tries to rush you through the process, tells you not to worry about items in the contract, or says or does anything that makes you uncomfortable, you need to find someone else to deal with.

Don’t let emotions override your common sense. It’s better to buy a home you can afford and keep it than to use “creative financing” to buy one you can’t afford and will lose in a few years because your payments skyrocket to an amount you can’t pay.

For some good information about mortgages that will help you be an educated consumer, visit PersonalHomeLoanMortgages.com.

Jackie