It never ceases to amaze me how people listen to everyone but who they
should be to determine which mortgage is best for them. They listen to the media, their neighbors, friends, family members, and even realtors to find which mortgage is best. But are they helping or hurting in the long run?
Now, a few of these individuals do have the knowledge necessary to make a good decision on the borrower’s behalf, but the vast majority are simply throwing out suggestions, blind to the facts, and more importantly, not knowing the borrower’s overall financial picture.
Compounding the problem, most mortgage professionals seek the money more than taking the time to find the best solution for their clients. Let’s face it, it is easy to get a 30-year fixed rate mortgage to anyone these days because that is what the borrowers have been told is the best thing for them right now (just read the news). But is it really?
Believe it or not, the Option ARM, yes those dreaded, "evil" loan programs that place homeowners in foreclosure while making mortgage brokers rich, are actually the best solution in a "perfect world". But alas, we are not in a perfect world. As Americans, we tend to do things we shouldn’t, such as use our house as an ATM machine.
How are we to find the best mortgage program for ourselves? Friends, family, realtors, mortgage brokers? Not likely. We are really on our own if we want to find the best solution. We must do our own research and find the "advisor" that will help us determine the best solution.
What should that advisor be like? It depends on you. Certainly they should show their level of expertise. Certainly they should show themselves to be trustworthy. Certainly they should offer more than one solution. Beyond that, it depends on you, and no one else can make the final determination of which advisor you should choose.
Now, be careful as you decide though. Asch’s Conformity Experiment can prove deadly in your decision making process. You see, that experiment proves that while you clearly know the correct answer, being surrounded by those answering incorrectly may lead you to answer incorrectly as well. A mistake on your mortgage, however, can prove very costly.
So, as you move forward in your decision on which mortgage to use, keep an open mind. The best solution may be the complete opposite of what you are thinking right now.
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So, if most folks tell me the world is flat, they could all be wrong?
How many folks would be in a better financial position today, if they’d done business with you when choosing their loan?
Stellar.
Jeff – I am not saying to do business with me, rather calling people to do their research and find the professional, and there are many blogging daily such as Brian Brady, that best “fits” what they need.
The reality is I am actually thinking of closing shop and focusing on other endeavors. I have been thinking along those lines ever since the beginning of last year. I am torn between two “loves” and flying is still the winner at the moment.
PS – I guess I should throw in a little ego trip and say that I have created a lot of wealth down here over the years, not to mention placed many families in better financial health overall.
Sorry, I will deflate my head now.
Whatever your decision, we all want you to be smiling. Good luck.
Thanks, I appreciate the support. Rest assured that blogging will remain a part of my “fun time”.
“Sorry, I will deflate my head now.”
Why? It ain’t bragging if you can back it up.
Brian…good point, but my head is big enough already, lol.
Everyone…Let me clarify my previous statement about closing shop. It is a long way away if it even happens, which I don’t want it to. I am still working on a “balance” of everything on my plate and hope all things balance out.
Hi Robert, just a comment on option ARMs. If people used them as a method of building wealth, investing the payment difference in a side fund and followed through religiously, you are right they are a great product. My experience is that most people, even when they know what they are supposed to do, don’t. They work well for sophisticated investors, but too many people will just make the minimum payment and spend the difference.
Peter…You hit the nail on the head as to why we do not live in a “perfect world”.