I have three beautiful ladies, my two daughters and my wife that live with me and one thing about my ladies is that they love their shoes. When I was shopping with them, buying shoes of course, they mentioned they were looking to buy their 20 minute shoes.
What the heck is that? I had to ask.
My daughters and my wife explained this way:The 20 Minute Shoes
, are shoes that are beautiful and they look great, but are not very comfortable. They make your legs look amazing and everybody loves to talk about them. What we do to look good.
This got me thinking of the latest news about mortgages. Unlike shoes, mortgage are not very exciting and the banks all know this. Furthermore, the banks also know that most people do not read the fine print when it comes to their mortgage documents and that is why they can come up with a mortgage that sounds great, but in reality it are the worst kind of mortgages. They give it names like" low rate base mortgage" or "collateral mortgages"
, They describe these types of mortgage the way of the future, great low rate and the ability of reduce legal fees if you are ever have to refinance,
What the banks do not tell clients that on a collartoral mortgage you are not able to switch your mortgage to another lende without paying fees, even if your term is up. That means you may not get the best rate when it is time for a renewal.
Your are stuck with your lender and their rates. Unless of course you want to pay legal fees.
Also this is the same problem when it comes to those extra low rate mortgage, you get a low rate but you lose your options and pay a much higher pre-penalty if payout your mortgages earlier.
I guess these mortgage is what we can in the industry....20 minute mortgage....
Talk to your broker about your mortgage and do not sign any documents until you know what you are signing and remember that most of the lawyer are representing the lender not you. So unless you ask, they will not tell you anything about your mortgage.
Love Your Shoes ...Love Your Mortgage