The Top 10 Reasons

1. If you look at your monthly mortgage statement you will see that the principle balance on your mortgage probably only dropped a couple dollars while the majority of your payment was interest. As an example on a $150k loan at 6% your monthly payment is about $900. $750 goes to interest and $150 goes towards the principle balance. These numbers slowly start changing where more goes towards the balance and less to the interest but that’s around year 15 when that starts happening.

2. Mortgages are front loaded with interest. This means you pay the interest off first before the balance. It sucks but that’s how the banks get paid.

3. Most normal 30 year fixed loans should be considered interest only loans anyways. As you can see from the example above the majority of your payment is interest.

4. Never take out a interest only adjustable mortgage. You never know if

1. First off mortgage brokers are not bad people. They are just trying to earn a living and have found a way to make a lot of money with very little personal risk. Mortgage brokers get a bad rap sometimes because of a few people that have misled clients. This happens in all industries but is in our faces more recently.

2. A mortgage broker is somebody who is a middle man between banks, credit unions, and investors. They work with so many companies because some have more programs than others or are willing to take a risk on a certain borrower.

3. Mortgage brokers do not lend you money. All that they do is the shopping for you and charge you a premium to do it.

4. If you currently are working with a mortgage broker or have in the past look for a line on the Good Faith Estimate(GFE) where it

1. Low interest rates benefit people who have lots of debt. I don’t like debt and don’t carry it.

2. The things that are affected the most are car loans, credit cards, and home equity lines of credit. If you have good credit you are going to get good rates as it is. Even if you do have good credit your credit card rates might only drop from 15% to 12%. Actually credit card companies don’t have to lower anybody’s rates if they don’t want too.

3. Lowering rates hurts people who are financially smart and save.

4. I have watched my online savings accounts with Ing Direct and Emmigrant Direct drop from an easy 5.25% being earned(pretty good for a normal savings account) to less than 3%. Thanks for nothing Fed.

5. If rates were higher it would force people to save more when they are looking to put additions on their homes,