Mortgage

Mortgages are often the largest expenses in a household's budget. It allows ordinary Americans to borrow enormous sums of money and use it to own real estate. There are many different types of mortgages, but RewardBus will traditionally talk about a 30-year fixed mortgage. These have been the staples of the American real estate mortgage ever since the Federal National Mortgage Association (FNMA, or Fannie Mae) was founded. FNMA was founded in order to purchase mortgages off of originators who wanted short-term cash (so that they could borrow short-term from checking accounts and lend long-term for things like mortgages without running out of money in between). The key to developing good mortgage behaviors is simply awareness and understanding. If you are aware of the risks, then mortgages are able to provide great opportunities (at significant risk) to American households.

It's a Long and Winding Road

As anybody who has purchased a home can tell you, the process is often long and confusing. There are steps before the offer is made, the purchase agreement is accepted, inspection occurs, appraisal finalized, closing completed, move settled and every little step feels like a mountain to climb. After the arduous full cavity search of a mortgage application has been finished, you still need to navigate the tricky subject of house offers and realtors: should you go REO (owned by real estate companies or banks), traditional homer-owned, new, condo vs. single-family, or even foreclosure market? All these questions are difficult to answer without knowing your detailed financial plan.

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As Many Situations As People

A common, large mistake borrowers make when considering a house is to not shop for a mortgage. There are many, many different lenders both online and in-person that are willing to provide a mortgage, often at a lower price than your primary bank. There is no correlation between where your checking/savings account is and the quality of the lending products. Do not feel obligated to give your bank business simply because you've been with them, this is a shopping decision that can impact thousands of dollars a year. Also, always feel free to walk away from the situation (whether it's a house or a mortgage) and don't feel pressured into signing something you are not comfortabe with.

RewardBus has provided some information about our experience with Real Estate and is looking to add to it in the near future: