Mortgage

I'll tell you why a mortgage is good - without a mortgage you'd be sleeping on the streets like a sucka chump!

Mortgage

You know what a mortgage is, don't you sucka? Well you'd better know, not just what it is, but how it works at every time and for every type ah home loan. At PITI the Fool we know our mortgages, and you don't so you'd better listen up chump or be ready to face the pain! What pain? This pain sucka, my financial fists!

What be a mortgage?

A mortgage is an agreement with any fool financial institution where they loan you the cash to buy a home and you use that home as collateral. So thats it, huh? No way, sucka! This isn't no punk loan you can find on the street, we're talking hundreds of thousands of dollars here, and you need to be ready to get tough with your mortgage.

• We all need a mortgage because homes are the most expensive purchases any of us will ever make. Even the rich fools living on the beach use mortgage loans instead of paying cash for their homes because their money is worth much more than the interest charged against your loan responsibilities. Your home mortgage frees up cash to be used toward better, more lucrative financial endeavors while enjoying the comforts of home ownership and making an investment in real estate.
• Even if you don't expect to profit much off your home -and you a sucka if you don't - a mortgage is still a necessary option because it will allow you access to loans you will want at some point in the future - be it through the financial assistance of a reverse mortgage or the support of second mortgage opportunities.

A little help never hurt nobody, and you a sucka fool if you buy a home without a mortgage! But you gotta remember to get tough and stay tough on your mortgages, or else they will get tough on you.

What my mortgage did for me

As a kid I used to eat three meals a day - oatmeal, miss-a-meal, and no meal. But then I got some cash in my hands busting heads in nightclubs and boxing the universe. But that cash gave me nothing but problems until I read up on home loans and the different ways I could save my money:

• I bought my first home with an interest only mortgage, and although rates were a lot higher then than they are now I got through it. By the time my interest only term was up I was already making gold by the truckload, so the added responsibility of principal didn't faze me. Nothing can faze me! I be a mean lean mortgage machine!
• Then I read up on mortgage rates, saw how I could lower them to the levels I needed and the rates most suitable for my material flex. I used a mortgage calculator to determine what I could afford then kablamm! Money in the bank, kid.

So get smart on mortgages and play dumb with your lender. It takes a smart guy to play dumb, but your lender doens't have to know about that. Let them lead you in whatever directions they want, but always know what to expect and what you should be seein'. If they show you trash you know that lender is a chump, and you best take your business elsewhere.