2. The Real World of Mortgages


Real_MortgageSo, you thought buying a car was complicated! Finding the right home and the best and least expensive mortgage makes car shopping look as easy as watching someone else cut the grass. Our example above, for instance, doesn't begin to touch on the mistakes an unwary person can make in this business.

For instance, did you know the best looking home might be the worst buy, even if you can afford it? Most people find that out after they've bought.

Did you know two mortgages with the same interest rate could vary tens of thousands of dollars in overall cost to you? Just ask the couple above—thousands of couples have this happen to them every year. How does that happen?

Did you know mortgage payments shouldn't be your only concern when you buy or finance a new home? Lots of folks go broke thinking the payment itself on their dream home is all that counts.

Speaking of payments, how do you know what you can really afford? And who do you trust to show you that critical amount?

Oh, and what type of mortgage should you get, a FRM, ARM, GPM, GEM, PAM, or OOPS? (Most unwary people get an OOPS: "Uh oh, I picked the wrong one!")

And what about saving on "points" vs. interest? Should you do that? How do you know?

And, finally, what if you have a mortgage right now? Should you refinance it? And what if you want to sell your home? How do you do that right?

WHO CAN YOU TRUST ON ALL THESE QUESTIONS, AND MORE?

You can trust us. That's because the StraightTalk Mortgage Guide is about member education. It's driven by information, not by hype. Here's a quick run-down on the guide:

StraightTalk Mortgage Guide: Rather than "You against the world," it's "Us against the world." The cost of a mortgage itself is really a small part of any mortgage or home-buying experience. Dozens of people and companies are grabbing at your pocketbook, and their goal is simple: maximize their profit on you.

We don't operate that way: because you own us, and because our financial stability is based on your financial stability, we want you to conserve money at every step of the process. We therefore are always looking for ways to get the prices down, not up. We're also working hard to help you make the best decision for your pocketbook and your long-term sanity. And the great numbers of tools we have to help you—either online or in person—are amazing, as you'll see in a minute.

And StraightTalk comes with the two important promises:

  1. If our mortgage isn't better and cheaper than the other company's mortgage, we will send you to the other source. Know anyone else who promises that?
  2. When you get a mortgage with us, you'll deal with us—not some third party—for the life of your mortgage. Many mortgage companies sell their mortgages to other companies. You become a speck of anonymous sand in that rough mortgage sea. When a problem develops (for instance, if your payment isn't credited), you deal with strangers. But get a mortgage with us in New York, Pennsylvania, North Carolina, Maryland, New Jersey or Florida, and we're there for you.

 


 

Next: Chapter 3. How Shopping for a Mortgage the StraightTalk Way Works



Prepared for Corning Credit Union by Remar Sutton & Associates, April 2003. Reviewed and updated May 2007. All rights reserved.


FoolProof Fast Facts

Follow Corning CU:

Contact