UNDERSTAND YOUR MORTGAGE

When you obtain a mortgage loan, you will be required to sign a large number of documents, all of which contain terms which are a mystery to many potential homebuyers.

UNDERSTAND YOUR MORTGAGE

You have a copy of all the papers you signed and all the attachments. Do you know where those papers are? If you are in an ARM, Interest Only, O% Down, or any of the many "non-conforming" loan products, it is important to drag out those papers and make a point of reading what you signed. Most folks never do - join the minority!

Bottom line, you need to know what lies ahead in 2 years, 5 years or 10 years. Ever hear about the "balloon mortgages" of the 1990s - you might have the 2000s version of a directly related cousin with a new name. Find out while you still have the window of opportunity to sign on for a fixed rate mortgage. Whatever caused you to choose the original, even a "sub-prime" mortgage, over a "conforming" 30 year fixed product may well have changed. Chances are you can get a loan in the fixed 6% to 7% region. Sounds like a lot, but, many of us started back in the 1960s at 9%, in the 1970s and 1980s into as high as 20+%! And yes, I went to a 6 room schoolhouse in Northern Indiana and had to walk up-hill through 3 feet of snow to get there, and back!!!

Okay, it was really only up hill in one direction. However, the interest rates stated above were all to real! Don't let 6+% keep you from avoiding the serious consequences that may lie ahead. Read your loan docs and, if appropriate, take action.


600,000 HOMEOWNERS MAY RUN INTO TROUBLE

If that doesn't spur you into action, I wish you my very best and will include you in my prayers tonight.

Meantime, release your emotions and concerns with this rather bizarre video if you have high speed internet:

ONE NIGHT OF FIRE