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People get screwed on car rates for sure but that's usually only a 4-5 year purchase. But I work in the home financing business and they really get screwed ridiculously on a 30 year deal. There's two things in the world everybody you talk to think they know something about: 1) Health and fitness and 2) Buying a home. I always hear home buyers telling me my cousin bought a house before and said this or he said that. I always tell borrowers well I had surgery before does that make me a surgeon? Then what make you believe you cousin knows what the hell he's talking about. People also say my uncle's an attorney and he said this or he said that. The truth is even the real estate attorney's know very little about mortgages. They know contracts and what items will hold up in court. Today I had a guy who's brother was an attorney, preach to me how his brother said he could get a lower rate with another company and how he wanted to put all this money down. I told him go ahead and go with the other company because with mine we were paying 5K in his closing cost and the other company wasn't paying anything. He said I have money to pay the costs but I want a lower rate. I'm thinking fool. What people fell to realize is the difference in the rate was only .375 which sounds like a lot. But if he or his brother were people with a financial mind they would've realized that at this difference you're only saving about $42 per month. A fool would say well that's $504.00 per year which sounds like a lot of money but look at it this way. Statistics show most people only keep their homes for 7 years before selling and upgrading. Now by you paying that 5K instead of us paying it for you then it would take you 9.9 years before you start even breaking even. If you were smart you would've taken the 5K discount in closing cost, paid the higher rate and put that 5K into another investment and think of where you would be in 9.9 years. It's ridiculous to me how people are always listening to people who don't have a clue. I know this isn't about cars but it is about financing. Don't get caught up in it.

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Some advice:

1) This "article" belongs in The Parking Lot forum.

2) Break up you post into paragraphs to make it easier to read.

[This message has been edited by SpectraBlueIS300 (edited January 25, 2001).]
 
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SpectraBlueIS300
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