Mortgage Quick Tips

May 29th, 2007

This isn’t meant to be a indepth guide to mortgages. This is just a quick set of tips.

• Pay semi-monthly or weekly! You will reduce the amount of interest you pay enormously and the mortgage will be paid off quicker. This is the best tip we can give!
• Use a fixed rate mortgage. Our interest rates are still very low and interest rates are only edging higher with the increased cost of oil driving inflation.
• Make your mortgage long term. Lock in the interest rates while they are still low.
• Put the biggest down payment on your house that you can afford. This will also reduce the amount of time until the house is paid off. You may also qualify for a lower interest rate. Also, you may have an option to prepay your mortgage. Many mortgages allow you to prepay a set amount each year without penalty.
• STAY AWAY FROM ADJUSTABLE RATE MORTGAGES. There is virtually no way on earth that interest rates are going to decrease anytime soon. Even if they do happen to decrease, it will only be a few percentage points at the most. The most likely scenario is that the interest rates will continue to rise and an adjustable rate mortgage will end up costing you hundreds or thousands more. Isn’t it interesting that most financial institutions are now alerting consumers to adjustable rate mortgages during a time of low interest rates, increasing inflation and during a period where governments around the world are consistently raising their interest rates?

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