FHA Loan. Mortgage Rates.
Okay, am I crazy, or what? I have started seeing advertisements for low qualifying mortgages—again! The FHA loan that just about anybody can qualify for low mortgage rates. Is this a joke? Isn’t this what got folks into trouble before—buying into the quick fix, it’s-too-good-to-be-true scam, the low mortgage rates, without much accountability? I know everyone wants the American dream— the house with a picket fence, the nice car, the kids, and a cat and a dog. What ever happened to waiting until you can actually afford those things?
Last week the Money Section of The Guardian ran a story titled “Pundits are trying to bring the subprime mortgage back. Don’t let them.” The author of the article believes that it is extremely risky to return to the same lending practices that got us into so much trouble just a few short years ago. It states, in part, “The financial industry has plenty of reasons to offer the same high-risk, high-return loans that made so many bankers rich during the housing bubble before everything crashed. But it’s less clear why any sensible commentator wants to cheer the industry on.” Beware of the quick-fix FHA Loan inducing you to succumb to the low or no qualifying mortgage rates.
See article here:
FHA Loans. Mortgage rates.
Others believe that low qualifying (subprime) FHA loans can help the economy and the housing industry in particular. I happen to disagree. I have the view that we should learn from experience and not repeat the same mistakes we made before.
Someone, who was offended by my views asked me today, “So Francine, are you saying only rich folks should buy a house and have kids?” And my answer is a definitive, “No way!” However, I will say that if you cannot afford to have children or you cannot afford to buy that house you want, or you cannot afford the exact car you want today, then wait.
Contrary to popular belief, deferred gratification is not a bad thing. But we live in a materialistic society that seems to demand instant gratification. Instead of patience being a virtue, patience has turned into a dirty word. But patience can save you from a lot of problems, least of which are financial difficulties.
Before you consider signing up for a “No or Low Qualifying Mortgage” check out the Federal Trade Commission (FTC) website.
I’m Attorney Francine Ward, and what do you think? Join the conversation on my Facebook Law Fan Page, my Twitter Law Page, my Google+ Page, or in one of my LinkedIn Groups.