big part of getting reality of their individual
approved or rejected in the situations enjoy much greater
mortgage process lies in success when you look at their
your ability to make rational, overall financial situations.
unemotional decisions. It's
essential that you separate The following questions are
yourself from the emotional issue designed to help you determine
of getting a house and approach how long you expect to be in a
the whole process like a prospective new house or hold a
business. mortgage. They should also help
you to do the necessary soul
People get a bit goofy when it searching "before" you make such
comes to money... especially when a huge decision. In fact, the
it comes to their money and in length of time you keep a
the case of the getting a mortgage may be the most
mortgage you're talking about the important financial question you
most money anyone will ever need to answer because how you
spend. As a result, if you can answer it will determine the
take the emotion out of the strategies you need to follow
equation your chance of making when selecting and paying off a
the right decision will increase mortgage.
dramatically. If not, you could
be in for a tough road because The bottom line is that only you
people who make mortgage can make the decision because
decisions based on emotion - make only you know your position in
mistakes. life now and only you can make
the decision on what direction to
Mistakes = Emotion + Money take your life in the future.
Those who take their time and
make decisions based on the Personal Questions
1. How long did you live in your 5. Instead of selling this house
last house? Why did you move and when we move, could we rent it
is that a recurring factor in out?
your life?
2. Are you expecting any major Economic / Geographical
life-style changes? 1. Are property values going up
3. Any major health concerns in or down in the neighborhood?
your life? 2. Is the local school system
4. Is this going to be your last acceptable?
house before retirement? 3. What are the property taxes?
4. What is the overall economic
Family Questions condition of the area - city,
1. Are you expecting any new county?
family members (i.e. children, 5. Are there any long term
elderly parents, etc.)? changes expected such as roads,
2. When will your children be schools, malls, etc.?
moving out?
3. How stable is your marriage? Location / Neighborhood
1. How long will this house meet
Financial Questions our needs?
1. Am I expecting a promotion or 2. What is the condition of the
job transfer? Am I transferred at house? Any major repairs needed?
regular intervals? 3. If this is a starter home will
2. How is my overall job it be too small in a few years?
stability? 4. How are the neighbors?
3. Are you planning on retiring 5. Does the overall condition of
soon or are you just entering the the neighborhood appear to be
work force? improving or deteriorating?
4. Is this an investment property 6. Are you buying this house only
with long term rental potential? because it's all you can afford?
route to go. The 2/28 ARM is
Of course, there's many more fixed for two years and then the
questions that could be asked but rate goes up (it's adjustable)
for purpose of this article let's but if you plan on moving quickly
take a look at some examples that anyway the first two years is
will demonstrate how answering will be lower than a fixed rate
particular questions will help mortgage and thus it will save
you in determine what type of you money. Interest-Only
mortgage to pursue - 30 year mortgages are usually amortized
fixed, interest only, 2/28 ARM, over 30 years, just like a
15 year fixed and so on. 30-year fixed but since you are
only paying the interest the
Example 1 - If you lived in your payments will be lower.
last house for about 10 years and Therefore, if you would like to
the house before that for about lower your payments and possibly
the same amount of time, odds are use the extra money to save for a
you'll live in the next one for down payment on your new home
lengthy period of time also. then an interest only mortgage
Therefore, you should accordingly may be a good option.
and thus you may want to look at
either a 15 or 30 year fixed Logical Decisions + Effective
mortgage. Planning + Money = Success
Although it's difficult, if you
Example 2 - If this is your first remember to approach the purchase
house and you plan on moving out of a new home as a business
as soon as you can afford it then decision and not as an emotional
plan on the best mortgage for one the odds that you'll make the
being in a house for a short right decision will be greatly
period of time. An interest-only enhanced.
or 2/28 ARM mortgage may be the
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About the Author:
Kevin Erickson is an entrepreneur and writer. You'll find more of his work at: Bad Credit Mortgage | Eliminate Credit Card Debt | Debt Management
Source: www.isnare.com
