Your Personal Financial Starbuck Caffeine Combination: Choosing the Right Mortgage

Ever watched Tom Hanks and Meg Ryans reunion in You Got Mail? There was a scene there when Tom Hanks find himself in Starbucks. The number of choices you have to make just so you can have the right Starbucks coffee for you is almost endless. Likewise, when you plan to take out a mortgage for the very first time, you have to spend quality time---uh huh, quality time---researching before choosing the right mortgage would come to you as easy as breathing and walking. Choosing the right mortgage is one of the Herculean tasks youll be facing in life. It can either make you or break you so dont take this particular chore lightly.

First and foremost, choosing the right mortgage requires you to know all about there is to mortgages. Choosing the right mortgage is not like choosing between spending time with Orlando Bloom or your worst enemy. Mortgages can be tricky at times because of all those loopholes that irritatingly clever lawyers manage to put in your contract. So when choosing the right mortgage, arm yourself with knowledge. Know the difference between capped rate mortgage and variable rate mortgage. Remember, knowledge is always power. If in doubt, ask Jimmy Neutron or Dexter for confirmation.

Secondly, choosing the right mortgage requires you to know as much as you can about your own financial situation. Its time to add up the assets and the liabilities. Your choosing the right mortgage entirely depends on how well you know your finances. Are you equipped to pay off a mortgage right now or are you neck deep in debt already? Just how much is there left in your budget, after paying your electricity bill and Readers Digest subscription, to cover your monthly payments? Would agreeing to a higher rate of monthly payment reduce you to starvation and a state of penury or something frightfully near that?

So summing the first two requirements, in choosing the right mortgage, youre asked to know all there is about mortgages and your finances. With those aspects covered, the next question to ask yourself is what do you want from your mortgage? Do you want a mortgage that would leave you enough breathing space to shop in Macys once a while and watch the occasional NBA game once in a half moon? Asking yourself specific questions will help in choosing the right mortgage.

Fourthly, in choosing the right mortgage, you then have to ask yourself just how much do you want the loan to cover. If you want to invest in a certain venture and buy a house at the same time, this is when the percentage comes in. Would you like to supply 80% of the cost of the house then let a mortgage cover the remaining 20% so you still have enough money for your other investment? In relation to that, what exactly do you want your mortgage to cover? The total cost of your property or is it just supposed to take care of the interest only?

Although at first glance, choosing the right mortgage seems to be quite complicated and you find yourself tempted to be JLos husband number---what number is she on now anyway---or simply borrow money from your mother in law and subject yourself to eternal slavery, dont be intimidated. Like biking, its only the first time when everything seems rocky. But youll get the hang of it and soon, youll be borrowing and mortgaging like theres no tomorrow. Now dont ask me if thats a good thing or not because thats for another article entirely.