|The mortgage process can seem huge and overwhelming. It can be an emotional process because a mortgage is the loan you are taking to buy a home for yourself and your family which makes it infinitely more than just a loan. Or it may represent the loan you are taking to refinance your home to invest in business dreams or to clean up some debts after life has thrown you sideways.
Likely you will head out to get your loan and, if you are human, are probably nervous about the whole process and whether you will even be approved. The new guidelines brought into place by the federal government have made it harder and you may even feel that you deserve a medal by the end of the process after jumping through all the hoops. The other part of the process is that we are inundated with information and we want to make sure that we are choosing the best mortgage that will protect us now and in the future. The easiest measure of mortgage ‘victory ‘seems to be the interest rate we are offered. What rate did you get is a hot topic after a home is purchased and it seems a no brainer that the one with the lowest rate is the clear cut winner in that conversation, but it is time to challenge that assumption and to do so we are going to look at just two normal situations. The fact of the matter is that you need to look beyond rate. Of course it is important as the lower the rate, the lower your payment but at the end of the day there is more to it than rate.