A New Year

As the new year is upon us, I have found it very useful to think about this past year. As you are aware, mortgage rates have risen. At least that is what the media would like you to believe. The 30 year no prepay, 80% Loan to value, 680 credit score loan is still very low. Generally the note rate would be between 5.875 and 6.250% depending on the day. These rates are not rate quotes but a general idea of where rates have recently been. However, the short term indicies that are associated with adjustable loans have increased dramatically over the last two years.

The media is aware that many people originated a mortgage that was tied to an adjustable rate. Moreover many people have originated loans that are by nature adding to the principal balance or the original note. This is not always bad and is a valid strategy for designing your financial future. However some people never understood that there is a limit to the percentage of negative additional balance that the banks will allow. Generally between 110% and 125%. When these loans reach their maximum negative balance, they recast. That is to say the lender adjusts the payments so that the entire balance will be paid off within the original time frame of the note. When this happens, the payment increases and some people are caught off guard with the payment increase. That's why we are here. We brokers that are responsible want to work with borrowers to maximize leverage in their home but still keep to a payment and loan strategy that will work in the long term for you.

There are two ways that I could buy stock. First I could research all the various fundamentals and their meanings. I could then choose several companies to follow through charts. I could rigoursly read their prospecti and watch documentaries on their CEOs. This would likely take me all day and all night, everyday of the week. Of course I would have no way to invest in the company of my choice because I would have no money.

I could also go to a specialist and work with him or her to strategize my future. I would rely on their intimate knowledge of the stock market and investment strategies. I retain final say on the actual investments but I rely on the specialist for their knowledge of the best investments to reach my goals. I would have money to invest because I could get back to work right away.

The latter is also the reason to use a mortgage broker/advisor. We spend all of our days working through scenarios so you can get back to your life. A mortgage can be a useful tool in your portfolio. Come to us and let us help you unlock it's potential