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How Overzealous Banks and Naive Borrowers Ruined the Economy

You might have heard that the economy is on a downturn. You might have even heard people throw away that dreaded "R" word (recession!). Well, we are not quite there yet, and it is up to the people to make sure we stay away from that. You need to know what you have to watch out for. The following are two things that you need to make sure you stay away from. Overzealous banks are something that requires your attention and being a na�ve borrower is also something that is bad. In order to make sure things are going right you must be looking out for your best interests at all times. The best interest of the Nation is for a brighter economy.

Bad, Overzealous Banks and Lenders

One thing that has plagued people is bad companies who are letting you borrow money. There are banks and lenders out there who will help you secure loans, but they will be bad loans. These people will give you false information on the amount that you can handle, and they will make it seem like you can get a certain loan and truly afford it. They will also tell you that you will have no problem affording a house. Their thought process is that they are helping you now, and you can just sort the rest out later on your own. They do not view it as their problem once it has left their desk. Now, not all banks are like this, but you have to watch out for the ones who are. Some lenders may even skim some money right off the top of every mortgage. This is something that is illegal for them to do. Make sure that you are not aligning yourself with an overzealous bank or lender.

Bad Borrowers

Do not just believe that banks and lenders are the only people who are to blame in this process. Some of the blame falls on the borrowers as well. Some borrowers were so excited about the possibility of getting some money to use on a home that they rushed into a situation that had a negative result. They did not look at the terms and they did not take the time to figure out whether or not this was something that they could actually handle. They just took the money and ran, hoping that everything would turn out correctly. They should not have been shocked that they got scammed because they really did not manage their money or see how they would be affected. This is why whenever you enter into a situation like borrowing money you need to see how this will positively and negatively affect you. In the end you need to do what is right for you. The only way you can know what is right is by taking your time and not rushing into anything without paying attention.

National Rate Averages

Mortgage Rates

Product Rate
5/1 yr ARM 3.147%
1 yr ARM 3.299%
15 yr fixed 3.221%
30 yr fixed 3.815%

Home Equity Rates

* Updated Jun 7, 2012