It’s with a keen eye towards risk that Mortgage and loan products are developed. That’s not to say short-term ‘products’ aren’t available but the days of competitive, cheap and similar ways that lenders prised their way through a dense market have been well and truly over for a long time.
I’ve always encouraged refinancing to secure long-term plans but, as lenders continue to be selective of their credit-worthy borrowers matched with their pricing changes and interest rates reflecting the markets, the ‘science’ behind products can seem to be drowning out understanding their true performance ability, and attempting to understand can get messy when Google connects us to a mass of information.
Skill and knowledge acquired by experience enable adjustment to information. So, for example with mortgages and loans, there is plenty of accessible information about lenders’ products, what is needed to assess against their risk spectrum for default and how bleak in general the market place is. While many questions remain uncertain during an economic and political change, an appreciation that peoples’ plans can’t always be kept on hold, opportunity can’t always be ignored and reluctance suppressed, needs the experience to understand the niches and nuances of lenders and their offerings that can get the best possible outcome.
Finding a solution to a financial pickle, paying off a mortgage earlier or making a purchase requires the right combination of components, a calculator and, that all important accurate understanding. Sounds like a magic Elixir? Rationale says not; its rational thinking about mortgages and loans.
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