Whenever mortgage rates rise quickly, most borrowers are tempted by adjustable rate loans and their lower starting rates. The strategy has merit, but often not as much as asserted by some mortgage salespeople. Herewith a guide to terms and tactics, and a simple equation to help you decide if an ARM is an appropriate defensive […]

In the last year, just about every homeowner in America with a long-term mortgage has received a solicitation offering to collect the mortgage payments in twenty-six bi-weekly installments instead of twelve monthly ones. The pitch: the conversion to bi-weekly will help you to pay off your loan several years earlier than scheduled, save tens of […]

Many buyers entering the home-shopping market are surprised when their Realtor tells them they have to go get a “pre-approval letter” from a mortgage lender. There are a few markets left in the U.S. where the seller is delighted to hear from a buyer, any buyer, even a poorly-qualified one (Buffalo, NY, I’ve heard); but […]

The best chance to waste money while getting a mortgage is to misunderstand the relationship between discount points, origination fee, and the interest rate on the loan. Borrowers carry the intuition that the lowest interest rate is always the best deal, and expect to pay some sort of loan fee and “point” along the way […]