What is a good interest rate?
Most of us would assume the lowest rate out there is naturally the best. Beware: These teaser rates draw in inexperienced home buyers, many of whom are now facing rate increases and are unable to make their monthly payments. It’s called the sub-prime mortgage collapse, heard of it? Like anything in life, if it sounds too good to be true, it probably is. “Even if you are looking at a normal fixed rate mortgage, don’t always search for the lowest rate in itself,” says Diane St. James, a mortgage coach at abcmortgage.net. “It’s more important to deal with a reputable company.” Do some research on the company you’re considering and check out how long it has been in business, how long it takes to process loans, and if the locked-in rate offered will be confirmed in writing. No rate is a good rate, if you can’t afford a mortgage.
Nestpert: Diane St. James, a mortgage coach at abcmortgage.net
by Alonna Friedman
7/2/08
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