Thursday, August 14, 2008
How should you finance a home?
Is it always, "give me the best rate?" or "the best payment?" Many of us have learned that painful lesson over the last couple years. Negative amortization is not the only loan to be wary of. The assumption is that your home will be the biggest investment of your life. If you know my point of view, I hope it is your first big investment of your life and you have the foresight to have many other true real estate investments in your portfolio. And what about how to buy that investment or really how to finance that investment? A $500,000 house purchase seems like a large investment, especially when you call it "half a million dollars". Although really, you are buying your 10% or 20% down payment part, the other $400,000 or $450,000 is being financed. That is where you should pay much attention. My great lender friend and financial consultant, Yulin Lee at Opes Advisors can guide you in choosing a loan based on your overall financial picture. Again - not just "best rate" or "best payment" - more so - "what loan best fits what I want my overall financial picture to look like. The stud lenders of today will take a comprehensive look at your financial picture before suggesting a loan to you. That's the type of lender you want in your corner.