Los Angeles Mortgage Financing | Cheaper is Not Always Better

Don’t “Cut Your Nose Off and Spite Your Face”
when it comes to your Mortgage Financing
    There’s an old saying …

    “You’re cutting your nose off and spiting your face” …
Cheaper is not always better when financing your Los Angeles mortgage

     Stretching the point just a bit, I want to use this saying to get a message across regarding interest rates … and the intense focus that most home buyers, and those refinancing, place on them.
    Now I know that sounds a bit ironic coming from me, a mortgage lender.  But as much as I think the interest rates we are seeing right now are a huge HUGE advantage to those seeking mortgage financing … I also think that the extreme attention and importance placed on rates by consumers can be rather myopic and ultimately end-up being detrimental to their long-term financial health.

    Using a play on another old adage, I believe  … “man/woman cannot (and should not) live on interest rates alone”.  And too many times I see mortgage clients doing just that.  They make decisions based SOLELY on interest rates.
     Typically a lower interest rate, and the subsequent lower payment attached to it, puts a “fire out”.  Meets a need in their mind.  They see  a tangible difference in the numbers they’re going to shell-out each month … and that’s obviously important.   I understand that …
    No one … NO one really WANTS a mortgage.  No one WANTS to pay money out of their pocket each and every month.  But the need is there, right?  And call it the financial planner in me,  but a home buyer or homeowner is typically talking the biggest financial “stake” and financial need they have in their lives when speaking to me about their mortgage financing.

     So I ask you … Why not get the “biggest bang for your buck” that you can from it? Utilize it?  Maximize the benefits you receive?
     A wise decision on your mortgage rate and mortgage program CAN do that for you.  And simply put, the lowest interest rate … and the mortgage program/term attached to it … may NOT be the best overall financial decision for you.
     But you have to be working with a mortgage lender that has the expertise, experience, and knowledge … and will take the time … to explain ALL options available to you.  Options that may serve a better financial purpose for you in the short and long-term.  Options that may leave you much healthier financially for the future.
     Many times the difference in interest rates between mortgage programs can be small … but still carry a HUGE and reverberating impact on your finances.  The importance of working with a mortgage lender  that can and will “paint the picture” for you regarding the short and long-term benefits of each of your mortgage options cannot be overstated.
     I believe making your mortgage selection based solely on interest rates can be like … “cutting your nose off and spiting your face”.
     So I suggest … don’t make the decision hurredly.  Take the time to and do the homework necessary to find the mortgage lender  that can provide you all the information, products, and services you need.  Then listen intently to what they say.  Take notes.  Ask questions.  Get ALL the facts regarding ALL the mortgage options and interest rates currently available to you.  Have the mortgage lender you’re speaking with “paint you the picture” in hard numbers.  Consider carefully the comparisons provided you. 

   Then and only then, make your final financing decision.      That way when you move ahead with your financing you will know for a fact that you chose the right mortgage lender.  On your Closing Day, you will know for a fact that you have the best mortgage financing for YOU personally … in the short-term AND long-term.
     You’ll feel .. and be … much happier and healthier financially for it.

Gene Mundt

I am a 30+ year veteran of the mortgage/banking industry, with extensive knowledge and experience in mortgage and credit services, management, and real estate appraising. I am also an IL Certified Financial Planner. This unique combination of education, experience, and expertise affords me more complete and in-depth resources from which to service my clients and their needs.

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