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This is a question around which there is much confusion. In and of themselves, mortgage loans are neither bad nor good. As a result, no one can truly, categorically say that a particular loan is either "bad" or "good." What one can determine, however, is whether or not the particular terms being offered are right for a specific borrower at a given time. Here is a question for you: Is a refinance loan at fixed rate of 11.325% with minimal cash-out a good or bad loan? The initial reaction of most would be that this is a terrible loan. There is, however, a couple in Orange County, NY, for whom my company arranged such a loan last year who would strongly disagree. You see, these clients were 120 days late on their mortgage, were about to slip into foreclosure, and had credit scores of exactly 500. Without this loan - which was the best possible loan at a par interest rate for which they could qualify - the couple quite possibly could have ended up losing their home either to a sale or to eviction. The couple is still in their home today and in the process of repairing their credit. Here is another question for you: Is a refinance loan at fixed rate of 5.250% over a 30-Year Term a good or bad loan? Most people would say that this is a fantastic loan. It has a low rate that is fixed for 30-Years. And it may very well be the best product available for a client who has found his or her dream home, wants to stay in that home for three decades, and wants to own that home free-and-clear in 30-Years. What if, however, this loan was being offered to a client who had no intention of staying in his or her home for more than 5 years? Or, what if the loan was offered to a client who knew that he or she had to refinance in 3 years to pay for college tuition or a wedding? Or what if the loan was being offered to someone for whom the fully amortized payment might be too high on a monthly basis? So what is the answer? As is stated above, the truth of the matter is that there are neither good loans nor bad loans. There do exist, however, the right loans for the right people at the right time. Similarly, there are the wrong loans for the wrong people at the wrong time. Before one chooses one loan product over another merely because of what he or she may have heard on television or read in the newspaper, take the time to evaluate your own personal situation. Your circumstances are unique. Only you, utilizing the advice of a trained Mortgage Planner, can decide which of the many products available today is right for you and your family.
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First Rockland Financial Domus Mortgage
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