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Fix Rate vs. ARM What Should I do?

Fixed Rate Mortgage vs. Adjustable Rate Mortgage (ARM) what is the best mortgage?

This question is like asking what is the best car to drive? I drive a Lincoln but does that mean it is the best car? I like it.

Do you realize that most mortgage professionals offer over 100 type of loan programs? Some of these are fixed rate products as well as adjustable rates. Do you really need all these choices? The answer is quite simply yes because everyone is different. Everyone's plans are different some are short term other are long term. Some people are looking to payoff the mortgage quickly (Not something I would recommend) and some are thinking they just want the lowest payment no matter if goes to 50 years.

So the question really is'nt what is the best mortgage but really what is the best mortgage for your needs and wants? By going on-line you can do some research but what it really comes down to is knowing and trusting your Mortgage Professional. Is this something you can do on-line, on the phone, by e-mail or face to face? My suggestions is to ask as many questions to make sure you feel comfortable. Remember the most important part is, it is your money. You are the client.

Something I take pride in is the fact that I am NOT an order taker but a Career Minded Mortgage Broker. When I meet with a client I always take notes on what their wants and needs are. Plus what type of mortgage do they think they want. After the meeting I present the client usually 4 choices of Mortgages. The first is always what the client asked for. The others are mortgage's that I would recommend are based on what their needs and wants where. I also list the pro's and con's of each one.

Is this a trick or a sales gimmick? The answer is quite simply no. It is what I consider doing my job. If someone is only going to be in the house for under 5 years why would I recommend a 30 year fix rate if they could actually save money on a 5 year arm.

This brings us back to which is the best mortgage. My suggestion is to find the best mortgage Professional for you! Someone who is not an order taker but someone who has a voice and is knowledgeable about the industry.

For More Mortgage Advice: Mortgage Advice in South Florida

Posted by Matthew J Blum - MyFavoriteMortgage.net on 07/24/2007 10:01 AM

Comments (43)

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This post has been included in Florida Information Palm Beach County, FL Information Palm Beach Gardens, FL Information
Post is included in group: Carnival of Content - Loan Officers/Mortgage Lenders

43 Comments on Fix Rate vs. ARM What Should I do?

JUL

2007

Words of wisdom by Matt. This makes perfect sense. Thanks for putting this into perspective. You drive a Lincoln?

Amen my man. Well put and good synopsis. I didn't see you as a Lincoln driver myself:-)

Stephanie, Thank you.. I think people did not realize I drive a lincoln. I might have to take apicture to prove it.

Jason, Yes It is an LS... but Lincoln decided not to make it again.. idiots. It is awesome on the highway.

I was just kidding. I trust you. :) I didn't mean that in a bad way, I promise.

Stephanie, I know.. its ok..

Even though I own a Cadillac, I thought I would comment on your post anyway....;-)

Excellent post! I wish more people would appreciate the art that is being a true mortgage professional, which is what you appear to be....even if you do drive a Lincoln!

Bob Mitchell

ValueList Real Estate Services, Inc.

Bob, Thank you at the time I bought the Lincoln Cadillac did not offer a rear wheel drive car. :-) Now they do. I really like the vr serious..

Matt,

Interesting post and I'll take one of each car... thank you.

I just got a Lincoln... MKX for my wife...

It was Ford vs Lincoln and in the end, the lease program was more attractive for Lincoln...

Lease vs Buy - lease made more sense ... for MY particular situation

how is this not threadjacking? well... because the ARM vs the Fixed rate is also a computation of timing, usage, costs, budgets as well

Another great entry to the contest!!!

Neal, I forgot to place your car up their. I know it has a star on the hood..:-)

David, oh well... I guess you can try and thread jack

Rich, Thank you

Matt,

I like the ferrari, I'll take two, I like the point about not being a order taker, that we are not..

Tom Weiss

Tom, My pleasure. To many L/O's are though.

I didn't notice that...

Neal, Sorry I could I ran out of space but is this better?

Just kidding..:-)

JUL

2007

Matthew - You are so right about there being no standard one loan product that is the best for each and every person. Each person has different needs and that goes to say each situation merits a different best loan.

Tony, Thank you. I agree every client is different it is not a one size fits all.

Matthew, Great minds think alike! I just posted my submission and now I am reading through the others. Good job! I like the car analogy.

Rey, Thank you.

porsche boxter

Matt.... would you mind if I showed up in this? I did see that you listed this at the end though.

Seriously though, well done. I think you hit the nail on the head, that each person has different needs and that each loan product is not for the same person. That goals are extremely important when accessing ones financial needs. Again, great job here.

jeff belonger

Jeff, Thank you. Nice car... I prefer the old porsche..My favorite was 928S

hey now... I do like the older cars... as you mentioned the 928S is a classic... just as I love my 1965 1/2 Corvette also.... But new is nice also... lol my pleasure, I think your concept was right on.... it's basically how I do business and should be the general platform. Not what can your loan do for me Mr Client, but what can I get the loan to do for you, in regards to your goals.

Very well done! I also believe in what is best for the client!

As far as cars...I just want my 72 Monte Carlo back...Grandma and Grandpa should have never given this beauty to a 17 year old! although it did impress the boys! :0)

JUL

2007

Jeff, you speak the gospel. Very true

Kim, 72.. I a so jealous. I had a 78 but I wanted that 72. What engine did you have?

In my opinion, nothing drives like a BMW.

I completely agree with what you say. Find a mortgage professional that you feel comfortable with and ask questions!

Ann, I won't argue I really love the 5 serious. Sweet ride

Thank you for the compliment

Matt- Good point. each situation is different. I want the Ferrari.

I believe it was a 350! Isn't she a beauty, I think mine had a black top tho. Blue Monte Carlo

Shaun, thank you I am not really a Ferrari person to much problems..

Kim, That is so HOT!!!.. You in a Monte and now you own a Harley.. nice. Thanks for the comment

Matt, to some its HOT, to some its just absurd! What ever, to each his/her own! I am who I am, and that is a very informative, knowledgeable, personable mortgage consultant... (sorry off on a tangent)

JUL

2007

Preach on, Brother Matt! Definitely words of wisdom.

Kim, That is ok.. would you like to borrow my soapbox?

I have a lot of respect for you

Tchaka, Thank you.. I appreciate that

Matt, LOL I really needed that soapbox! Thanks!

Kim, You can borrow it any time :-)

JUL

2007

Matt, where my little Rav 4?! I love your point about finding the right mortgage professional, but I wanted to see my sweet little car up there. ;o)

Sarah, oops sorry.. I hope this is better..:-)

Well thank you, Matt! :o)

I'm IMPRESSED with your customer service!!

Sarah, I always try to make the customer happy :-)

then where is my $5,000 rebate coupon? lol

JUL

2007

Jeff, I guess you will have to buy a dodge product..:-)

AUG

2007

Thank you very much for sharing, I too am not an order taker.

Shane, Glad to hear that..to many Loan Officers or Part-Time people just take orders and really don't look into what is the best thing for the client

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