Best 40 Year Mortgage

Through this 2 part article, I am going to try and smoother a great challenge for all those considering a 40 year mortgage. Should you go for a mortgage with a floating or a fixed interest rate? Every single day, prospective mortgagors face the dilemma of choosing between fixed or floating rate mortgages. Making the right decision is certainly not easy, especially when one has to face the following problems – I hope you don’t mind my bluntness:

First, comes the ultimate immaturity and silliness which often describes the way that newspapers deal with that dilemma. Then, it’s the plethora of bank advertisements which often promote one rate or another according to their own interests and not the interests of their prospective customers. I am sure many of us have already forgotten that when interest rates started falling, banks started heavily promoting fixed rates which used to be lower when compared to the variable – back then – ultimately hurting their very own mortgagors. Another thing to consider is the failure, inability, lack of training, or even lack of training tools which are being made available to the bank’s staff. Lastly, there are various changes in the factors that seriously influence the fluctuation of interest rates which didn’t use to be so important or even related to the factors that influenced changes in interest rates 10 or 20 years ago. The “mortgage game” has now gone global.

The biggest challenge for banks, or any banker, is to create a tool that calculates the affect that interest rate changes in a variety of scenarios in order to be fully prepared. Believe me, it is extremely difficult to make such a tool that shows accurate results concerning 40 year mortgage rate estimation. If it wasn’t, it would already be out there in the market. It took me many years of hard work to even try and go for it. Then again, the more difficult a challenge is, the greater the returns both psychologically and monetary. Imagine after putting a few good days of work on something and then watching it work flawlessly. I can tell you from personal experience… It’s a great feeling.

Now go ahead and read the second part of “40 Year Mortgage – Fixed Or Floating Interest Rate?”. I just couldn’t give you the full story in one article, I needed to add some suspence!