My Mortgage And How You Can Learn from My Mistakes

Posted by MTS on 12/30/07 in Finance

Only a few short years after graduating from college, I was on the American track of moderate success. I had a good job with room for growth, a new wife and baby girl, and the prospect of a growing financial portfolio in years to come. Unfortunately, that growing portfolio made me think that I was better off than I actually was, and so I started making more aggressive decisions, not the least of which was taking one of the jumbo mortgage loans I had been offered by more than a handful of financial institutions.
 
It only took a few years to realize what this decision meant for me. Not only had I taken a loan on the pretense that, as my rates increased, so too would my income to make my new payments. Home loans are interesting creatures in that not all of them are created equally. In fact, they are almost entirely different from each other and if you do not do the proper research, those differences will jump out and bite you…hard.
 

I eventually ended up selling that home and moving into a much smaller, more realistic home that my family could afford. The lowest mortgage rateswere within our financial grasp and things were much better for us. My advice to you is to spend as much time as possible researching your mortgage rates before you make any decisions. When you do finally buy your home, make sure you will be able to afford it in three, five, ten, and fifteen years.

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