My clients know I don't like exotic loans or interest only loans. I'm not saying that some of these loans can't be useful depending on your financial position but overall I have always believed there is nothing wrong with being a bit conservative and if you are going to go for an adjustable rate loan then you should get one that is fixed for at least 5-7 years. Over the last two years I have been advising my clients who have adjustable rate loans reaching maturity to refinance as soon as possible. One of the fallouts from the sub prime debacle is that many lenders are tightening their lending requirements which may make refinancing rough in some instances for those who have been using their homes like ATM machines.
I am fortunate to know two mortgage brokers who I think are absolutely the best.... Morgan Brown and Brian Brady. They each have blogs that tell it like it is... Recently Morgan Brown, who writes the Blown Mortgage blog about what's wrong with his industry, did a great interview with my other favorite Mortgage Man of Integrity... Brian Brady.. America's Most Opinionated Mortgage Broker. Click here to listen to a great interview and some timely advice about what consumers may need to do to be sure they don't wind up in financial trouble.
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