Mortgage Planning Tips

    The upside of the housing slump has been that potential homeowners previously priced out of the market are finding that they can afford the American Dream thanks to a combination of lower resale and new home prices along with record low interest rates. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 4.78% in the week ending May 1, 2009, down from last week's 4.80% and the year-ago 6.06%, according to Freddie Mac's weekly survey.

    In order to take full advantage of this wonderful opportunity, it is important to contact a knowledgeable and reputable mortgage professional who can evaluate your current financial situation. A Certified Mortgage Planner can help.

    There is no universal, optimal choice of mortgage product and potential borrowers are advised to consider their goals and capabilities, and take these factors into account when evaluating potential mortgage options. For example, when evaluating a specific type of loan, there is more to consider than just the monthly payment and interest rates. It is necessary to always consider the tax deductibility of mortgage interest, your spending habits, capacity to save, risk tolerance and future goals. A good loan choice is the one that is designed to integrate into your short and long term financial goals.