What’s Your Mortgage IQ?
Posted by: Christina / Category: Money Matters, Running the HouseholdMy mortgage broker called me out of the blue last week. We had not spoken in three years since we refinanced our mortgage to help pay for our basement renovations.
I immediately thought that she was looking to drum up business. You know how it goes: you get the phone call, you chit-chat, then they ask you if you know anybody who can use their services. I know this type of networking is important but more often than not, I feel like all these people are after is a name.
Rather than feel like a slab of used meat, my broker sincerely asked how we were doing and that this was a courtesy call to let us know that with all the hullabaloo in the mortgage industry, our loan was safe and the terms would not change.
Honestly, I have no idea what problems she was referring to. We generally don’t watch the news and I remember seeing a few headline online about problems and lots of mortgage companies going out of business but I really don’t know how this could affect us.
Come to find out during the course of this conversation, lots of people’s loans will adjust to much higher payments in the coming months, which will catch many of these people off-guard. I’m not sure how that happens; do you apply for an adjustable rate mortgage and then forget when it adjusts? My broker said that these people would get slapped so hard in fees that many of these properties would be in foreclosure soon.
That’s truly frightening! I guess it’s the old saying, “Ignorance is bliss” but it’s not bliss if all of a sudden you’re on the brink of foreclosure and bankruptcy. Gone are the days of Leave it to Beaver and I Love Lucy (am I totally dating myself now?) where the women were given an allowance and were otherwise oblivious to their financial situations.
Mortgages can be complicated, especially when it comes to sorting through multiple offers and finding which one serves your family’s needs. Contact a mortgage professional to get the best service and to get the best loan for your needs.
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