I hear that the citizens of Greece are pretty disturbed over the fact their government spends more than it makes. Why it’s almost like living in California without the smog. The financial crisis in Greece is similar to our budget deficit in California, except that California has more experience with borrowing from Peter to pay Paul. If you ask most people how a budget deficit happens, they probably couldn’t tell you. I’m guessing that’s because a lot of people don’t enjoy throttling their brains with financial matters. They’d rather eat cheese; I know I would.
A new study released by Zillow says consumers spend more time buying a car than they spend researching mortgages. The study interviewed 2,729 people. The results show consumers spend about 10 hours buying a car versus 5 hours comparing mortgages. Almost a third spent 2 hours exploring mortgage options.
I mean, how long are you going to own that car? 3 years? 5 years? You will probably make mortgage payments on that new home for much longer — maybe 10 years or more — and the cost is typically a lot higher.
I tell borrowers to choose a mortgage professional they can trust. And to shop around. Compare good faith estimates. But don’t choose a product solely based on the interest rate or payment. Because by the time a borrower is ready to lock a loan, that interest rate will change. Moreover, don’t spend above your means. In these financial times of uncertainty, a couple might not want to rely on two incomes to make that mortgage payment.