Can You Forget About Creative Mortgages?

Author:	Lucas Jones
Source:	Homes Discovered
Date:	September 1, 2006

Hopefully you can forget about all these creative mortgages, such as option ARM's  and interest only's.  If you can't, maybe you should be looking for another job.  If you can and are in the market for a new home, I would suggest that the only thing you need to know about mortgages is fixed-rate.  Many bought property during last year's boom using one of these creative loans thinking that the home value would increase and they could sell or thinking that their income would raise enough by the time they had to make larger mortgage payments.  Times are different now. People who chose to buy a home with these methods are now struggling to make the larger mortgage payments.  They also, cannot sell the property due to the large inventory on the market.  Many of these people will have to take an offer on their home for much lower than they would have liked, often times, ultimately losing money.  This is the case because they cannot afford the larger payments that their wacky loans now require.  Some of these people will also go bankrupt. Of course if you are looking at purchasing a home in the Norman area, you can learn from others mistakes and choose for the fixed rate mortgage.  In the long run it will be the cheaper, and safer route to take.

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