Home Loan Rates
We all continually hear how low interest rates are and the interest rate seems to be the most important item to a borrower with a mortgage. When you get something for less money you are most likely giving up something somewhere else.
A friend of mine got a haircut yesterday and when I saw him I asked him what happened. He said he when he was getting his haircut the barber asked him if he wanted the back of his neck squared or rounded off and he said do “whatever.” Whatever ended up being a point in the back of his head like an arrow, see below. I asked him how much he you pay for it and he said $15. I immediately said that makes sense, you get what you pay for.
When you are cheap with a haircut you can either try to fix it or wait a week or so for it to grow back but you can’t do wthat with a mortgage. No matter what you are buying you can always find something for less but you are giving up something somewhere. I once heard someone say that an eighth of a point higher on your interest rate won’t change your life but a mortgage gone bad will and he was right. Don’t treat your mortgage like a haircut, make sure you work with an expert or you might end up paying a lot more in the end.