Suze Orman Quotes

Consider a 15- or 20-year fixed-rate mortgage instead of a 30-year, if you can afford the monthly payments - they may not be as high as you think.

Generally, there are three rules when it comes to borrowing money: You need to have good credit, proof of income and cash for a down payment. Most people have the first two, but it's the third that trips them up. And nowhere does that come into play more than the mortgage market.

Ignore the annual percentage rate when shopping for a mortgage.

The Federal Housing Administration has their leaflets there [The National Home Show] showing exactly how much it costs to build a house of this kind and what the monthly payments are. You pay twenty percent down and then pay the remainder over a period of twenty years, which should encourage home owning in this country on a much safer basis than has ever existed before for the average family.

Buying a home is exciting, but it's also a big financial commitment.

The way we finance homes in this country is slow, filled with middlemen, who run a nonstandardized evaluation process. This makes financing a home cumbersome and difficult.

God did not say that you should be able to borrow one hundred percent of the price of a house.

I still think buying a home is the best investment any individual can make.

If you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.

A mortgage transaction is very complex, very complicated, and very localized - the rules are not just by state but by county, sometimes even by municipality.

Our Sheffield and London homes are worth well over a million but the bank owns most of them - we are mortgaged up to the gills.

You can refi your car loan just like you can refi your mortgage. It's even easier and less expensive. There's no appraisal process, and fees are minimal for a new car title. A couple of caveats: Most lenders require that the car be less than five years old and have a minimum loan balance of $7,500.

Lenders look at potential borrowers from many angles before extending credit: How much of its income will a household need to put into debt repayment? How large is the down payment? Does the borrower have a job with a stable income? What is the borrower's credit score?

No loan is free. The costs are in your loan somewhere, maybe rolled into the amount to be refinanced or even coming at a higher interest rate.

If your appraisal comes back too low - you don't have at least 10% equity for a conforming loan or 20% for a jumbo loan - you might not be able to refinance at all, at least with a loan that's packaged and sold to Fannie Mae and Freddie Mac. That means you may have to pay a much higher rate.

Refinancing your mortgage usually makes sense if you can lower your interest rate by at least two points. But the most important question to ask yourself is, how long will it take you to break even?

Right now we think that rates will stay low, that you'll be able to get a mortgage below seven percent and that's kicked off a refinance boom that's going to put more money in the pockets of consumers.

When you borrow money, you should always think how you're going to pay it back.

The only time I've ever taken out a loan is for the building work I had done at our house and I did that by extending the mortgage.

Even the once simple home mortgage now has so many flavors and styles and variations that it is difficult for people to make a decision.

In America, people buy cars, and they put very little money down. They get a car, and they go to work. The work pays them a salary; the salary allows them to pay for the car over time. The car pays for itself.

I certainly agree that capital is not a one-dimensional object, and that the return on capital takes very different forms for different assets or different people.

One of the problems that we are confronted with is, when we decide to buy or build a home, we don't get a clear picture of what closing costs will be of that home.

Potential home buyers have a two-step decision process. First, they determine whether they can afford to make a purchase - does their income safely cover their mortgage payment? Then they determine whether owning is a better financial choice than renting - are the costs of owning a home lower than the cost of renting it?

Capital is kind of a banking concept.