Hey Michael, I’m shopping for a mortgage, am I not just looking for the lowest rate ?

Hey Michael, I’m shopping for a mortgage, am I not just looking for the lowest rate ?

September 12, 2009

Yes and No, of course rate is a key component, but sometimes a mortgage can be compounded differently to work against your rate. If we all wanted the lowest rate, wouldn’t we all just get the exact same mortgage? What I’m trying to get at is, there’s much more to mortgages now a days, instead of “getting a mortgage” its more like “designing a personal mortgage plan”. You should be building a mortgage around the following questions.

  1. How long is this plan for?
  2. What could the cost be to change at that time?
  3. What are you expecting the payments to be?
  4. How much out of your payment is interest?
  5. What is your goal to be debt free?