Getting The Right Loan

I have written many times about how a loan is much more than just an interest rate.  It’s about getting the right loan and advice to put you and your family in the best financial situation now and in the future. 

Every borrowers situation is different but for the most part I like a 30 year fixed rate mortgage over a 15 year because with a 30 year you can always make a 15 year payment if you want but with a 15 year loan you can’t make a 30 year fixed payment when money is tight. 

I am sure there are many experiencing this now and that is evident from an article in The Wall Street Journal yesterday called “I can afford my home with the right loan.”  I have included the link at the bottom of the page.

I am one of those “troubled borrowers.” My problem is not that I can’t afford my home, but that I can’t afford my existing 15-year mortgage. I need a 30-year mortgage, but I’m unable to refinance because of my home’s decline in value. I could easily afford to buy my home at today’s value with a 30-year mortgage at today’s interest rates. And the miserable irony is that the next owner of my house, after the foreclosure sale, will receive exactly that deal.

When you are looking for the lowest rate that’s the type of service and advice you are going to receive.  You get what you pay for and if you want to put the purchase of your largest asset and liability in the hands of some random person you found on the internet then go right ahead.  I heard a saying by a veteran in the mortgage industry say “you shop for shoes, you shop for clothes, but when you shop for a mortgage you get stuck with the biggest liar.” 

Another thing to keep in mind with a 30 year versus a 15 year fixed is that with a 30 year you might have an easier time qualifying for a mortgage or other types of credit down the road because the debt to income ratio for a person with a 30 year is going to be lower than a 15 year.