While there are certainly more options with mortgages today than even at the beginning of 2009, consumers would do well to not make assumptions about the relative merit of any one type of mortgage plan or any one mortgage provider. The fact is that as the recession continues to move toward an end, some of the rules that applied in the past do not necessarily apply today.
One example has to do with the comparison of fixed-rate mortgages to the benefits of mortgages with a variable rate. At one time, the variable rate was easily the best option, given predictions of the direction of average rates over the long term. Today, however, even consumers who tend to not be conservative with investments may find that a mortgage with a fixed rate is likely to be more to their liking. The only way to know for sure is to take the time to compare the merits of both types of mortgages and then make an informed decision.
There is also the matter of ancillary charges and fees. At one time, there was very little difference in these fees from one lender to the next. Again, that is not necessarily the case. Some lenders charge fees for services that others provide at no charge. In other cases, some lenders will charge smaller fees where other lenders have a higher fee schedule.
The bottom line is to never commit to a mortgage until you have compared it to what else is currently available. This means looking below the surface of the plan to get into the intricacies of the terms and conditions. If necessary, secure the services of a consultant to unravel the mysteries of the terms to your satisfaction. Doing so will help to ensure you are happy with your decision for a long time.
