| Bad Advice
Once a farmer told his neighbor that his best had the colic. His neighbor volunteered that when his mule had colic, he gave him a quart of whiskey. "Really?" the farmer asked. "Yep." A few days later the farmer saw his neighbor again and said in a huff, "I gave my mule a quart of whiskey like you said and he keeled over and died on the spot." "Hmm…" his neighbor mused, "mine too." Bad advice comes easy. And it's obvious looking at the current home mortgage crisis that plenty of it's been going around. Just like the neighbor/large animal vet, I routinely hear would-be experts offering lousy financial advice. Over the past decade, millions of Americans have used historically low interest rates to get over their heads in debt buying houses, cars, and toys they couldn't afford. Rather than looking at overall costs or value, a generation of consumers grew up focusing only on whether they can make the monthly payment.
How To Lower Home Mortgage Interest Rates
(Best Syndication)There are two basic major types of home mortgage that are available out there. One is called a fixed rate mortgage which involves a fixed amount of payment for the whole pay-up period. This means that regardless of the economic conditions, one has to pay a certain amount of money to the lender for each payment period. Another basic type of home mortgage is the adjustable rate mortgage. This is an arrangement which allows a person's payment to be pegged on economic indicators such as those of the money market. This means that a person's interest rate payment can go up or down depending on the performance of the entire economy. Adjustable rate mortgages usually have lower interest rates than the fixed rate mortgages (because of the risks involved in the adjustable rate mortgage).
Rural homes foreclosed, but not near number of urban, suburban home ...
Foreclosures, which have roiled housing markets across the state and the nation, have had a smaller impact in Pennsylvania's rural communities, where subprime loans were rare and lenders and borrowers work hard to avoid defaults. "Because of the nature of the rural buyer, they tend to be more conservative in how much debt they carry," said Dan Duffy, chief executive officer of United Country Real Estate in Kansas City, Mo., one of the largest rural real estate agencies in the United States. Also, lenders who specialize in serving rural communities keep most of those mortgages on their own books rather than sell them on the secondary market. Thus, they will go to greater lengths to help property owners avoid foreclosure. For the most part, the lenders tend to be small outfits, often nonprofit organizations with relatively few accounts.
|
