Mortgage Interest Rates

As I am sure you have noticed, interest rates have gone up in the last week and half. Why is this happening?

There are, of course, many factors contributing to the increases. I will focus on two of the big ones. The stock market has been going up like crazy the last few months and last week the sale of bonds was weaker than expected. Both are related but one does not necessarily cause the other.

Let's talk about the stock market first. I believe the stock market is finally factoring in all the good news that has been coming out (company earnings, low unemployment, increasing wages, etc.) since the end of last year. If you remember, the market was somewhat stagnant last fall. So, why would this good news affect the interest rates negatively?

When the stock market is doing well the investing public wants a better return on bonds (higher rates or yield) in order to invest there instead of the stock market. When the interest rates on bonds are low, the only way for an investor to get a better yield is to purchase bonds at a discount. The bigger the discount the higher the yield. A hot stock market makes the discount on government bonds increase.

Next lets look at the sale of bonds by the U.S. Government. Why does the government sell bonds? This is the way a government finances itself when it operates in a deficit. The proceeds from the sale are used to pay interest on bonds sold in the past, fund ongoing governmental expenses, and retire old debt.

So, how does a weak sale affect interest rates and what caused it? When the bonds are put on the market, investors bid on them and set the price. High demand for the bonds would decrease the discount or eliminate it thereby lowering the yield. High demand is generally caused by a weak stock market, or falling interest rate environments, or a strong global demand for our bonds, or a combination of the three.

The stock market is going strong so that decreased demand. The Federal Reserve does not look like they will lower rates in the near future so that decreased demand. The weaker dollar has decreased global demand for our bonds as well. So, the government had a poor sale of bonds and had to discount the bonds to raise the money. Remember, big discount equals higher yield.

Banks and lenders have the choice of investing their money in bonds (relatively safe) or by loaning the money out (risky) to borrowers. In order for lending to be attractive to a lender, the return must be greater than they could get by just investing in bonds. So when the yield on bonds goes up, so must the interest rates on mortgages.

As always, your comments are welcome!

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.

The Columbia Missouri Housing Market

Well I have waited and waited for enough data to transpire and I thought I would share, at least my perspective, on the condition of the local housing market in Columbia, Missouri. Some of you may have seen that new homes sales nationwide were up 43%, however what has been slighted is the fact that the majority of this increase 60% or so, was isolated to the Northeast. In fact, Midwest new home sales were down a U.S. low of a little over 28%. In a later article toward the middle of last week, the report of existing home sales data was released and the numbers were at a 14 year low. Again with a huge proportion of this data isolated to the slumping housing market in the Midwest. What does this mean for us here in Columbia, Missouri? Are we still feeling the impact of this? How much time is left?

The answers to the above questions is not a science, however there are some things I would like to point here. First, it is my belief that the Columbia, Missouri housing market is alive and well for homes priced below $250,000. There are plenty of buyers in this price range and there is a plethora of nice homes to fill the mold of almost every buyer's taste. However, homes priced over $250,000 have really hit a lull and will continue to do so for quite some time. Why? Well for starters it takes a qualified buyer to afford this type of housing and to add to the dilemma there is over 435 houses in this price range and not nearly the demand. I see this market getting better but I believe it will take the remainder of this year and over half of next year to start seeing a reversal. The bottom line here is, rates are rising, gas prices are rising, and the housing market is in a slump. This does not add up to a successful sale if you are one of the many sellers in and above the $250,000 market. Buyers are simply looking at lower priced homes given the fact the commodity items are on the rise with no relief in site.

I know of several sellers including myself who have felt the pain of this market. Luckily for us construction permits are down and more builders are moving toward the ever popular Lake of the Ozarks to build and sell their homes. We need to shrink our inventory of homes and we need rates to drop again and gas prices to be reduced drastically to help us. There are numerous factors that determine how successful the housing market is and unfortunately for us most of them are completely out of our control. Good luck and as always your comments are welcomed!

Brought to you by the Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker!

Personal Documentation Requirements For Mortgages

I thought it might be time for a refresher on what documentation and information that a client needs to provide in order for a loan to be done. Every loan will not need all of the following documents, but it is good to make sure you have it all on hand just in case you need it.

When you're ready to apply, you need the most current information on your monthly income and debt, a total of your assets, your social security number, and employment information.

Lets take these one at a time.

1. Documenting your income - You will need to provide 30 days worth of pay stubs and last two years W-2 statements (used when you file your taxes). Or, if you are self-employed and have been for several years, you can provide copies of the last 2 years tax returns. You may also provide up to 12 months worth of bank statements to help prove your income.

2. Documenting your debts - This is an easy one. We pull your credit report and it lists all revolving (credit cards and lines of credit) and installment (i.e. your car loan, your current mortgage, etc.) debt, as well as any judgements and/or collections that have been placed against you. This will also provide all the payment and term information.

3. Documenting your assets - When you apply for a loan, you make claims of assets. These are verified by providing your most current bank statement and any other statements (savings, 401(k), IRA, etc.) you may get on a periodic basis. The more assets you can prove, the better you look from a credit risk standpoint.

4. Documenting your employment history - The lender typically requests a verification of employment for you within a couple of days before loan closing.

And that is pretty much it. The other personal information,such as current address and social security number, is given at the time the application is taken. Having these things ready and organized at the start of the process makes the whole experience go smoother and be more enjoyable.

Your comments are always welcome!

Brought to you by Professional Mortgage Group, Inc. in beautiful Columbia, Missouri.

F.A.Q Part III

Today is the final installment of our Frequently asked questions. The entire list and much more can be found on our website www.pmg-inc.net.


What is an origination fee?

The origination fee is charged by the lender, and is typically .25% - 2% of the loan amount you borrow. This fee is used to cover expenses during the process of the loan.

What are closing costs?

Fees and costs that both the buyer and seller must pay at closing. They generally include: origination fee, discount point, appraisal fee, credit report, title search, recording fees, inspection fees and other costs described in the HUD I at settlement.

Can I include my closing costs in with my loan?

Yes, typically they are written into the purchase agreement between you and seller. Fannie Mae and Freddie Mac allow a max contribution of 3% and Non-conforming loans allow a maximum of 6% to be contributed to closing costs by the seller.

When will my first payment be due?

Your first mortgage payment is always due the first day of the second preceding month. For instance, if you were to close on March 15th, your first payment would not be due until May 1st. Another example would be if you closed on January 3rd, your first payment would not be due until March 1st.

How do I make my mortgage payment?

Your lender will mail you monthly statements with a payment coupon. Borrowers also have the option of electing EFT (Electronic Funds Transfer) on the 1st, 5th or 10th of the month. Most lenders also have the ability for client to pay by internet or over the phone.

Must I escrow?

That depends on the type of loan and product. All Fannie Mae or Freddie Mac loans with a loan-to-value above 80% require you to establish an escrow account. However, with Non-conforming loans you are given the choice of escrowing or not.

Must I have anything out-of-pocket?

Again this depends on the loan and product. Typically, most Fannie Mae and Freddie Mac loans require a minimum of $500.00 of the borrowers own funds be vested in the transaction.

What is Earnest Money?

These are funds that are deposited along with a written contract and held by a third party (i.e. title agency) to provide leverage/good faith that you have every intention of closing on the desired property.

Must my spouse be present at closing if he/she is not on the loan?

That depends on numerous factors. With Missouri being a community property state both married individuals must sign certain “legal” documents at closing. However, you should consult your title agent or attorney for other options or remedies.


If you have any questions that are not answered on our 3 blogs or on our website, please ask. Just post a comment, email, or call us. We would be happy to help!


Your comments and questions are welcome!

Brought to you by:
The Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker".

FREE FURNITURE

Professional Mortgage Group would like to thank everyone who has participated in our "No Pro Joe" radio campaign. Both, in giving us great nominations and allowing us to assist you with your home loans.

We are now gearing up our NEW radio ad to help our customers furnish those new homes. This ad should be effective June 1, 2007.

We will be giving away $1000.00 dollar shopping sprees good at a local furniture store in Columbia Missouri. Anyone who uses PMG for their refinance or purchase is eligible. Upon closing your loan with PMG, you will receive this certificate.

We look forward to assisting you with your next home purchase or refinance. Stay tuned for details.

Details subject to change.

Brought to you by Professional Mortgage Group, Columbia Missouri
573-777-1198

Professional Mortgage Group Quarterly Happy Hour

We are looking forward to seeing all of our Realtor and referral partners tonight at Boone Tavern for our 2nd quarter happy hour meet & greet. The weather couldn't be better and the conversation should be great. See you there!

Brought to you by Professional Mortgage Group, Inc.
in beautiful Columbia, Missouri.

How high gas prices are effecting the housing market

High gas prices are causing home buyers to live closer to work. That means many buyers are moving closer to town and getting away from the long drive from home to work. For Realtors, this means many properties will sell better than those farther from the city or town.

Home buyers have been making the trade off for years - the further away from metropolitan areas a home is located the cheaper it is likely to be. Consumers have been willing to exchange time for money, frequently commuting 30 to 60 miles each day between a nice home in the suburbs to their job in the city or in another far-flung suburb.

Home buyers will find the price/commute trade-off is no longer feasible. This could drive down the price of housing in far-flung suburbs and put an additional premium on homes that are close in or with access to public transit systems.

With these high gas prices, many home buyers are really putting an emphasis on location. Living closer to work will save you money in many different ways. You can ride your bike or even walk to work if close enough, which will help you use less gasoline. It would also help save money on eating out for lunch as much. Many people who live close to work can go home and make lunch with the food bought at the grocery store, which is a lot cheaper than eating out.

It is amazing how gas prices can effect many aspects of some one's life, including home buying.

This message was brought to you by your Columbia Mortgage Broker:

Professional Mortgage Group, Inc
3610 Buttonwood Drive, Suite 200
Columbia, Mo 65201
573-777-1198

Questions and Comments are welcome

F.A.Q

Here is part II of our F.A.Q section continued from last week.

What is the difference between a fixed rate and adjustable rate mortgage?

With a fixed rate mortgage, the interest rate and payment remains constant over the life of the loan. Whereas with an adjustable rate mortgage, the interest rate can either increase or decrease based upon the terms of the loan. This could cause the monthly payments to increase in order to have the loan paid in full by maturity.

What is a convertible mortgage?

A convertible mortgage allows you to convert your adjustable rate mortgage to a fixed rate mortgage for a flat fee during a specific time frame. This fee can range from $250 - $500 per lender.

What is a balloon mortgage?

A loan with a fixed rate payment for the first five to fifteen years of the loan, then a lump sum payment is due on the balance of the loan at a specified date when the balloon loan matures.

What is a conventional loan?

A mortgage not guaranteed by VA or insured by FHA, FMHA or State Bond Agencies.

What is a jumbo loan?

A conventional loan that exceeds the maximum agency (Fannie Mae, Freddie Mac) mortgage amount guidelines for a conventional loan. (Currently $417,000 for U.S. originated loans)

What is PMI?

This stands for Private Mortgage Insurance. On a conventional loan PMI is required if you borrow over 79.99% of your appraised value. This protects the lender against financial loss if the loan is defaulted. Many borrowers refinance in 2-4 years to use their equity to avoid paying PMI. Other loan programs are available to avoid paying PMI.

What is mortgage life insurance?

This insurance would pay the balance owed on your mortgage home loan in the event of your death during the term of the mortgage. This is currently not offered for the majority of lenders; however your insurance agent should have some similar options.

What is hazard insurance?

This represents the insurance that protects your investment in your home. It provides compensation to the insured in case of property loss or damage (i.e. fire, hail, or tornado etc.)

What are points?

Points represent an origination fee charged by the lender and loan discount points sometimes charged on the note rate to lower the interest rate.

What is a buy-down?

A fee paid to lower the interest rate on a mortgage. The buyer, seller, or any other interested party may pay it. A permanent buy-down would lower the rate for the entire term of the mortgage, while a temporary buy-down lowers the rate for a specified shorter term, generally 3 years or less.

We at Professional Mortgage Group, Inc. hope this information is helpful. You can view the full list on our website www.pmg-inc.net. Next Tuesday will bring the 3rd and final installment of these F.A.Q's. Be sure to check back!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Newsletter

With the attention our Buyer's Guides, Quarterly Business Functions and Weekly Realtor Visits have been getting we (PMG) have decided to roll out yet another informative media idea with the implementation of a quarterly newsletter. Now we are in the early stages of development and layout however, sometime later in the year you will see our newsletter floating around local businesses (i.e. realtor offices, title companies, appraisal offices, and other prominent locations).

We hope this newsletter will both bring light to local market conditions, highlight local real estate professionals, and update Columbia residents on lending practices. As we move forward with this project we look forward to your feedback.

Brought to you by Professional Mortgage Group, Inc.

Your Columbia Missouri Mortgage Broker.

Reverse Mortgages

What is a reverse mortgage? How is it different than a traditional mortgage? A reverse mortgage is a way of tapping into equity in a home without having to sell it or make payments towards a new loan.

A traditional mortgage, as you know, has the following traits:

1. Used to purchase a home

2. Has income requirements

3. Requires monthly payments to repay debt

4. Homeowner uses income to make those payments

5. Debt is reduced with each payment

6. Equity is increased with each payment

7. When the mortgage is paid in full, the equity is the same as the value of the home.

A reverse mortgage , on the other hand, has these characteristics:

1. Used to provide homeowner with cash

2. No income requirements since there are no monthly payments to be made

3. Homeowner remains in the home

4. Debt is due only when the owner dies or moves

5. Debt increases on a monthly basis

6. Equity decreases as debt increases

7. Owner may have no equity at time of death or move.

Reverse mortgages are primarily utilized by senior citizens in retirement and are looking to supplement their fixed incomes by tapping the equity in their homes. Of course, other options are available to get cash, such as selling the home and moving into a less expensive home. This, however, may not be an attractive option for a homeowner who has lived in a home for a long time.

As always, your comments are welcome!

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri

No Credit Score Mortgage Loans

In rare cases some customers do not have a credit score for a bureau to disclose. This usually occurs in young home buyers. That is because some people do not get a credit card or some type of loan while in high school or college. It is a great idea for parents to open a small account with their children on the account to get them started on building a credit history.

If there is no score, then lenders have to manually create a credit score. This is done by having a customer report to the loan officer at least 4 accounts they have had for at least 12 months with a good paying history. Some popular examples are rent payments, car payments, cell phone payments, a gym membership payment, or any other monthly payment made on an account for 12 months or more.

The key is to avoid the manual score by the lender. If you are thinking of buying a home within the next year, be prepared. Open up a credit card account. Buy a cell phone. Become a member that requires a monthly payment. Rent an apartment, house, duplex, or town home for at least a year. Ask a parent to add you to a credit card account or loan payment account.

Buying a home will be one of the most exciting and biggest investments you will make in life. When there comes a time that a home that you love and can afford becomes available, be prepared by having your financing options in line first. It all starts with your credit score.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker

Home Loan

A home loan is a very critical piece in your financial portfolio. It is always important to do your homework and choose a lender and product that meets your needs. The sole purpose of this blog is to help educate our customers or potential customers. Even people who will never use Professional Mortgage Group (PMG) can take advantage of the information we provide!

Here is a quick list of some frequently asked questions and answers that we hope will help you when it comes time to shop for your Home Loan!

F.A.Q.

What is Pre-qualification?

The process of determining how much money a prospective homebuyer will be eligible to borrow before a loan is applied for.

What is a Pre-approval?

This allows you the ability to get approved for a specific loan amount prior to finding the home you want to purchase. The loan is underwritten and the lender commits to a specific loan amount. This can give you a great advantage with a homeowner or realtor if someone else is interested in the same home at the same time. Also, if you're thinking about refinancing and want to payoff creditors or take cash out, but not sure you would qualify – you can apply for a pre-approval and could save on the cost of getting an appraisal on your home until you know if you qualify.

What information do I need to provide when I apply?
When you're ready to apply, you need the most current information on your monthly income and debt, a total of your assets, your social security number, and employment information. For a complete list, see our Documents Requested list.

Is there a cost to apply? If so, how much?

No, there is no cost to apply for either a pre-qualification or a pre-approval.

Where do I close and sign for my loan?

Typically your closing will take place at a title agent’s office. When all parties agree upon a closing date, we will provide you with the exact location and time of your loan closing. Please note that this is typically specified in the purchase agreement.

What documents will I receive at closing?

At closing you will sign and receive copies of all legal documents that will be recorded and placed on record regarding the property that you are purchasing or refinancing. Also, you receive all pertinent information regarding your mortgage payment and servicing information for your new loan.

How long will the loan process take?

Loan approval and funding time frames vary depending on the type of transaction and the complexity of your personal finances. The process can take, on average, anywhere from 7–30 days.

What is a lock-in?

The lock-in represents the interest rate you choose and will be the interest rate used to factor your monthly payment. The lock-in secures the interest rate during the process of your loan approval as long as your loan is processed and closed prior to the rate expiration date. This date is given to you when you lock-in the rate. Typical lock-in periods are from 7 to 30 days, however longer options are available that stretch to 180 days, some fees apply with the longer lock periods.

When can I lock-in my rate?

You can lock or float your interest rate at any time during the process of your loan. The Mortgage Broker will discuss these options with you upon taking your loan application. If you are submitting your loan application via the Internet, a broker will be contacting you to discuss your interest rate lock or float options. Please note that an address is sometimes necessary in order to process a rate lock.

How long is my rate lock valid?

Depending on the type of transaction and the time you need, lock periods can be valid anywhere from 7 days up to 180 days.

Can I pay my loan off early; can I pay extra each month?

Yes, you can make principal payments at anytime during your loan term or pay the loan in full. You can also pay a set amount each month above the normal payment due or make lump sum payments periodically. Please note that some loans contain a pre-payment penalty. Terms of the penalty vary depending on the lender and product.

What is an escrow account?

An account maintained by the lender to collect funds from the borrower in order to pay the taxes and property insurance due on the loan.

What is PITI?

This represents the accounts your money is applied to when you make your monthly mortgage payment: P – Principal I – Interest T – Taxes I – Insurance

How do I know what loan is best for me?

Review your current situation and future goals, and then answer the following questions to help determine the direction you may wish to take. Also, discuss these questions with your mortgage professional to help determine the type of loan you need.
How long do you expect to stay in the house?
Which is more important, low monthly payments or low closing costs?
Will my income increase or decrease in the next three years?
How comfortable are you with your monthly payment potentially increasing?

These FAQ's are the first in a 3 part series. Check back the next 2 Tuesdays to complete the list or visit PMG online at www.pmg-inc.net to view the entire list under the FAQ tab. We also have this list in our "Buyers Guide" that we provide to our Realtor referral partners.

I hope this will come in handy when it comes time to find your Home Loan!

Brought to you by:

Professional Mortgage Group, Inc.

Your Columbia, MO Mortgage Broker!

Rate Locking

Rates for the most part have been holding steady. We as mortgage brokers must watch what the market does and the index's that effect rates. Now without getting into the details of what exactly affects rates and what index's we watch I hope this blog gives you some insight as to the rate locking process.

We as brokers can lock rates anywhere from 7 to 120 days out. What does this mean for you? Well, shorter lock terms typically mean lower rates and fees associated with that lock. Vice versa with longer locks these usually result in a higher rate and increased fees. Why? Take for instance someone wanting to lock a rate at 120 days. You (as the client) are wanting to lock today's rates in for a future time. The lender must in turn secure funds, typically "hedge" or long or term notes to finance the money for your mortgage. With this added risk, (4 months out) the lender will charge 1/2 point or even 1 point discount to secure your lock, which if you close your loan with this lender will be refunded. The next question that I am sure is on your mind, is why charge a point discount? Well, from the lenders perspective what happens if you lock your rate at say 6.5% on 120 days. Four months past and rates drop to 6.25% and you move your loan to another lender and close the loan with them. Well, the original lender for which you locked is out money for securing your funds for the last 4 months, so to cover their costs they typically charge a point to secure that you will close your loan with them and if not they can at least cover their costs by the originating point. Now most lenders allow for a one time float down during the course of your lock. This means that on our same 120 day lock at 6.5% and 15 days from closing rates have dropped to 6.0% the lender will allow you to "float down" to 6.0% at no charge, you close your loan and the originating point is refunded. Why would a lender do this? Lenders want your business they would rather have your interest over the next 30 years rather than collect 1 small discount point.

Shorter locking terms are much different than the longer options. Seven to sixty-day locks typically do not require any fees associated with the lock however, there are no "float down" options available either. Either way it's a gamble and you must do business with someone who knows how to monitor rates and gives you good advice on the type of lock that's best for you. Rates change daily and sometimes several times a day so dealing with an experience individual/company is imperative!

Your comments are welcomed!

Brought to you by Professional Mortgage Group, Inc. Your Columbia Missouri Mortgage Broker.

Closing a Mortgage the Right Way

I have heard way too many horror stories from new clients and Realtors about past closings with other brokers and lenders that did not go as planned or, where issues came up without all of the parties involved hearing about them until at the closing table. This should never happen! If you are working with a competent lender or broker, all issues should be addressed and handled prior to the day of closing.

Note that I did not say that issues should not happen. The truth is that sometimes things do not go as planned no matter how prepared or organized you are. But, one of the most important things in customer service is to keep your client and their realtor in the know about the transaction. A closing should be a formality only. There should be no new information when you get to the table.

The best way to make sure your closing goes the right way is to use professionals that you trust. Work with someone you have been referred to by friends, co-workers, and family. If you are new to the area, make sure that the person or company you are going to work with have testimonials you can check. Do that and you should have a great real estate transaction.

Your comments are always welcome!

Brought to you by Professional Mortgage Group, Columbia, Missouri

Pay Option ARM

Many people are payment conscious when it comes to a mortgage loan. People want the lowest interest rate to get the payment at its lowest. There are many programs out there that get you a low payment on your mortgage. The program that gets you the lowest rate and payment a lender can provide is the Pay Option ARM. The Most popular is the 5 year Pay Option ARM. What that means is the rate and principle and interest payment is fixed for 5 years at a low rate and payment, then adjusts on the 61st month. There are other names for a Pay Option ARM: Negative Amortization Loan, NEG AM Loan, Deferred Interest Loan, Flexible Payment Loan, Pick-A-Payment Loan, Cashflow ARM, Option ARM, Power ARM, and Smart Choice Loan.

There are usually 4 options on Pay Option ARM:

1. Minimum Payment
   The Minimum Payment Option provides the greatest monthly cash flow savings. This option pays a portion of the interest and nothing toward the principle. This may cause a consumer to owe more on the loan than originally started.


2. Interest Only Payment
   The Interest Only Payment Option is paying the full interest of the loan and nothing toward the principle.


3. 15 Year Fixed Rate Payment
   This option allows a consumers to apply the largest contribution towards principal and term reduction. The payment required to satisfy this is calculated by amortizing your loan based on a 15-year term from the first payment due date.


4. 30 Year Fixed Rate Payment
   This is the fully amortized payment based on a 30-year loan and is calculated each month based on the prior month's interest rate, loan balance and remaining term. The biggest advantage to this payment option is that the payment pays all of the interest due and reduces your principal.

The Pay Option ARM is not for everyone. It is usually beneficial for Short-Term Homeowners, The Self-Employed, Real Estate Investors, or Commission Only workers. This is because most people choose the minimum payment option, and could get upside down on their home if no money is being put toward the full interest over a long period of time. Do your research before applying for a Pay Option ARM.

Questions and comments are welcome.
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Debt Consolidation

Everyone has heard of debt consolidation and most people have been through a time in their life where they have needed it. This is because things come up and people must lean on credit cards and loans to make it through. There are different methods of debt consolidation, but the most common is using home equity!

Some of the advantages to consolidating are as follows:

1. You can lower your overall monthly payments.

2. You can lower the total interest that you pay.

3. You can pay off your debt in a more timely fashion.

4. You can relieve some stress.

Some things to think about when consolidating:

1. Make sure you use a lender that you trust.

2. Find out what your home is realistically worth and DO NOT follow through with a loan that

puts your home over 100% loan to value. If you are forced to sell you want to be in a

position to be able to at least pay off your loan. Don't be surprised to find a lender out there

that says your home is worth more and they can pay off more of your debt! If it sounds too

good to be true, it probably is!

3. Do some soul searching about how long you plan on being in your home. This information will

help you make the best decision about what type of debt consolidation is best for you!

4. Don't stretch your debt out on a really long term. Keep in mind how many years you have

left on your current 1st mortgage. If you have 15 years left, don't pay off some debt and

stretch it back to 30 years if you can avoid it. The super low payment may sound great, but

remember that every financial situation is different! I'm sure you get my point here. This

goes back to analyzing your situation and doing what is best for you.

By considering these simple points, you can feel comfortable about your decision. Never let a lender railroad you into something that isn't good for you. Debt consolidation is a great thing and has helped millions of people pay off their debt. Just be smart and follow your plan! Always keep in mind that once you consolidate, they debt is not gone! You have only transferred it! Don't fall into the trap of feeling "free" again and go run up more credit cards. Remember what type of spending habits got you a jam and change them!

Good luck to anyone that is consolidating and feel free to post any questions you might have!

Brought to you by

Professional Mortgage Group, Inc.

"Your Columbia, MO Mortgage Broker"