"Getting a Mortgage" From the Mouth of an Honest Broker

I am asked these questions a lot:

"How can I know if I am getting a good deal?" or "How can i protect myself from financial difficulties from my new mortgage?"

Well, these are loaded questions. The easiest way to avoid a financial problem is to spend less then you can afford. On the flip side to that, the things we NEED are becoming more expensive then we can afford.

I usually answer them with one sentence:

"If you got what you wanted and the service was what you expected, then yes you got a good deal."

I have learned early in my career that consumers do not want to be told what they want or what is good for them. They want to be in control of the transaction. With that in mind, the following tutorial is highly un-practiced by the average borrower. I contribute this as a reason for many of todays borrowers in trouble. You can quote me on that! Lets move forward.

ADVANTAGES TO OWNING A HOME

Now purchasing a home may not be a NEED, but is a proper INVESTMENT. You don't need to buy a home to have a place to live. If you can afford rent, you can afford a Mortgage. In most cases the Mortgage payment is lower then what you pay for rent, even included taxes and insurance. If you own a home you can write off the interest you pay from your income taxes. If you work from home you can write off some of your property taxes and utilities. Every penny you put into your home is an investment you will prosper from. Your home will appreciate at a rate that will rival any savings account. Most homes, even in today's market, will appreciate 5-10% a year on average. If you can't pay your mortgage up to 15 days late, in most cases there is no penalty. This is a plus for those us that live paycheck to paycheck and don't always get paid on the first of every month. If you have small children, you can use your home to finance their education by the time they graduate. When you retire, there are even loans to completely remove your mortgage payment and even send you a little money each and every month until you leave this earth. Those are called REVERSE mortgages. These are just a few advantages of home ownership over renting.

A LITTLE ON TERMINOLOGY