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Mortgage Tips
Expert Offers Tips for Choosing a Mortgage
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by KYW’s John Ostapkovich
Even with the Federal Reserve's interest rate cut this week, effects of the sub-prime mortgage meltdown are still being felt. So what does that mean if you're actually in the market for a mortgage?
This is a time to be careful, says Adam Brauer, founder of Debt Settlement USA, to learn from the mistakes that are forcing so many homeowners into foreclosure. First, be realistic about how much house you can afford.
Brauer holds to the old rule of thumb that no more than 25% of gross income be allocated for housing:
"I've seen people go up to over 50 to 60 percent. That is just crazy because all you're doing is setting yourself up for failure."
Brauer says check your credit score and repair any problems. Shop around for a mortgage. Either of these can save you big money. And make a budget. You may find enough wasteful spending that, if controlled, will get you that mortgage. |