Home Loan Confusion Continues

Unfortunately, most Americans still do not understand how home loans work and how to take advantage of the wide array of programs available. The way I see it, people are still confused about mortgages in general and real estate finance, in particular.

Just last week, a friend of mine told me he was buying a house. He was pre-approved for a loan, he said, and I was very happy for him. You see, he is young, just 25, and he is embarking on the American Dream of home ownership. So, I asked him about the type of mortgage he was getting. He said, "I don't know. I was just approved, and I haven't even signed any papers, yet."

He did have the house picked out, though. Although it is all too typical of a response, I found myself still surprised that my friend didn't know anything about the loan he was being pre-approved for. As another acquaintance recently pointed out, the right loan program can make hundreds of dollars of difference in your monthly payment. This person will save $6,048 this year using an adjustable rate mortgage over that pesky fixed rate that so many people desire.

For some reason, home loan confusion continues to run rampant in America. Most likely because the average American is ignorant of how mortgages work. This is not an attack on American's intelligence. It's okay to be ignorant; it is not, however, okay to remain that way, when you know you are entering a complex financial transaction.

Avoid this problem. Educate yourself. Learn all you need to know about real estate finance with the wealth-building system, Winning the Mortgage Game.

Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com and also learn how to gain financial independence through proper real estate investment strategies. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com

In The News:
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.rttnews.com/Content/USEconomicNews.aspx%3FNode%3DB2%26Id%3D791796cid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNH3eBuqg6BZSbjvNZCZp3b7H1nRLgimg src=http://news.google.com/news?imgefp=K9rEQCVEfhwJimgurl=www.rttnews.com/ArticleImages/USTopStories/2008/December/housing-120308-01.jpg width=70 height=80 alt= border=1brfont size=-2RTT News/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3Da_i8357NDD7k%26refer%3Dhomecid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFYqW0P0HUp8nnH8XE_yjURohi5zwUS MBA’s bMortgage/b Applications More Than Doubled Last Week/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1The bMortgage/b Bankers Association’s index of applications to purchase a home or brefinance/b a loan jumped 112 percent to 857.7, the highest level since March, b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/bulls-outlast-bears-wednesday-grudge/story.aspx%3Fguid%3D%257BD706D818-06FC-4461-9AA0-6BE928A0AF20%257D%26dist%3Dmsr_3cid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNGrscWgpuADw6OGUNBMV8rYiHmtagFINANCIAL STOCKS Bulls outlast bears in Wednesday grudge match/a font size=-1 color=#6f6f6fnobrMarketWatch/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.usatoday.com/money/economy/housing/2008-12-03-mortgage-applications_N.htmcid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNGlZYog4D9ahOcfn90AHe3m--iqmAFalling rates spark rush to bmortgage/b applications/a font size=-1 color=#6f6f6fnobrUSA Today/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/ap/article/ALeqM5iGO3ptAO6a54_9bVj7EorgcgBWSQD94RAE1G0cid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNH96PGPjXqKRX-lmTkPeZIk2kQ_0wbMortgage/b application, brefinance/b volume surge/a font size=-1 color=#6f6f6fnobrThe Associated Press/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/economicNews/idUSN0333008520081203cid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNG6vQUlXQVLi7FitaSYsGs0X3o8hQnobrReuters/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://economy.kansascity.com/%3Fq%3Dnode/409cid=1277091985ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFKPj4n78LYJizobQHP8wINXMd3RAnobrKansas City Star/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277091985hl=ennobrall 131 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.easybourse.com/bourse-actualite/marches/mortgage-refinance-applications-soar-as-rates-fall-573131cid=1277284710ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFGD1WowpWaz7Uo3D2Rr1FFtXo9_QbMortgage Refinance/b Applications Soar As Rates Fall/abrfont size=-1font color=#6f6f6fEasyBourse.com,nbsp;Francenbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1The bMortgage/b Bankers Association#39;s index of brefinance/b applications posted a record 203.3% increase over the previous week. Additionally, the US Treasury b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/big-rate-drop-sends-mortgage/story.aspx%3Fguid%3DABF1DD99-9E4D-4F47-94EE-7E0956A6FE64%26dist%3DSecMostReadcid=1277284523ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNEfjkXaSrshm8kKHps_4Nc0lydUpwbMortgage/b applications up 112.1% last week, due to drop in rates: MBA/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1Applications to brefinance/b an existing loan rose 203.3% last week, compared with the week before. bMortgage/b applications to purchase a home rose a seasonally b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://money.cnn.com/news/newsfeeds/articles/djf500/200812031551DOWJONESDJONLINE000859_FORTUNE5.htmcid=1277284523ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFJgSWVzV-W0EbMbAl8INFeKv9LUAUPDATE: Builders Soar On Lower Rates, But Pain Persists/a font size=-1 color=#6f6f6fnobrCNNMoney.com/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.dnronline.com/news_details.php%3FAID%3D33724%26CHID%3D1cid=1277284523ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNGkYegFefbgSP4pMhIbSg59hxM3xA30-Year Rates At Lowest Since ‘03/a font size=-1 color=#6f6f6fnobrHarrisonburg Daily News Record/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://blogs.wsj.com/developments/2008/12/03/economists-stabilize-home-prices-by-cutting-them-drastically/cid=1277284523ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFIOwVtA9vJwpNCDXjRQu8nvVaYXAEconomists: Stabilize Home Prices By Cutting Them Drastically/a font size=-1 color=#6f6f6fnobrWall Street Journal Blogs/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277284523hl=ennobrall 11 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/ousiv/idUSTRE4B27JG20081203cid=1276773558ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNHINePn4Vw8mhPRfBg5tsP6y_7lhQLower bmortgage/b rates help but jobs, prices key/abrfont size=-1font color=#6f6f6fReutersnbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1Applications to buy and brefinance/b homes hurtled higher last week as the lowest rates since the summer of 2005 unleashed pent-up demand. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaxAJBzAz986w%26refer%3Dhomecid=0ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNGXQMsJQ_cbozNZHwEoEXH62-49BwPaulson Considers New Plan to Lower bMortgage/b Rates (Update2)/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr6 minutes ago/nobr/fontbrfont size=-1While lowering bmortgage/b rates to 4.5 percent would allow most homeowners to brefinance/b into a cheaper loan, far fewer will actually qualify, said Rajiv Setia b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/ap/article/ALeqM5gxwdhWlcBaOAu--sbHbnK6vFR9cQD94RGMEG0cid=1277260420ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFI066kBICf0mlrtH457EXgHbBvvgFinancial industry pushes for lower bmortgage/b rates/abrfont size=-1font color=#6f6f6fThe Associated Pressnbsp;-/font nobr40 minutes ago/nobr/fontbrfont size=-1While the plan, if enacted, will help anybody looking to buy or sell a home, or brefinance/b out of an expensive bmortgage/b, it may not help those whose credit b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.smh.com.au/news/national/fixedrate-trap-snares-43000-home-owners/2008/12/03/1228257139097.htmlcid=1277181419ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFaRL-1FrdzmTE3sHzIzpumYiE8Ngimg src=http://news.google.com/news?imgefp=H67Akanm7v8Jimgurl=www.smh.com.au/ffximage/2008/12/03/christopher_zinn_narrowweb__300x490,0.jpg width=49 height=80 alt= border=1brfont size=-2Sydney Morning Herald/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.smh.com.au/news/national/fixedrate-trap-snares-43000-home-owners/2008/12/03/1228257139097.htmlcid=1277181419ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFaRL-1FrdzmTE3sHzIzpumYiE8NgFixed-rate trap snares 43000 home owners/abrfont size=-1font color=#6f6f6fSydney Morning Herald,nbsp;Australianbsp;-/font nobr10 hours ago/nobr/fontbrfont size=-1quot;People who are on a fixed-term bmortgage/b are invariably surprised to find out the size of the break fee when they choose to brefinance/b,quot; he says quot;Often it b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://raleigh.mync.com/site/raleigh/news%257CSports%257CLifestyles/story/20699/mortgage-brokers-now-is-good-time-to-refinancecid=0ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNEqanWqC_Bn9kU_H4y0I7yWarrubwbMortgage/b Brokers: Now Is Good Time To bRefinance/b/abrfont size=-1font color=#6f6f6fMyNC.com,nbsp;NCnbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1By Lauren Hills, NBC17, 14 hours, 38 minutes ago While most money matters aren#39;t looking up right now, if you#39;re looking to brefinance/b your home, bmortgage/b b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601213%26sid%3DaSwRduPiiLjc%26refer%3Dhomecid=1277198152ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNFevltFxzIOE8jO5NEHBSchfPMQ1QFed’s Kroszner Says Foreclosures Harming Middle-Income Areas/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1b.../b the highest on record as home prices dropped and stricter bmortgage/b standards made it harder for homeowners to sell or brefinance/b, RealtyTrac Inc. said. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601068%26sid%3DaRtykQ8tqETY%26refer%3Dhomecid=1277209673ei=XBQ3SfD6D4zK8ASx2tioDwusg=AFQjCNH3TC-YZXZ66mPWatfjGgCAU62v5wUS Economy: Service Companies Shrink at Record Pace (Update1)/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1“Things overall still look bad, but this, together with last week’s doubling in MBA brefinancing/b, provide glimmers of hope,” Ian Morris, chief US economist b.../b/font/div/font/td/tr/table
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