A Custom Mortgage

A custom mortgage could mean something totally different now than it meant five years ago. Custom mortgages at that time usually meant a unique mortgage term, with a unique situation. In addition, it could mean a unique rate according to which term and whether or not you were looking for cash out, or if you were looking for just refinance the home. Paying off bills? Absolutely, we can do that too!


Five years ago, custom mortgages were the in thing with subprime lenders. Lenders were using terms of 17 years, 24 years etc., in order to try and sway their borrowers. Did it work? In some ways yet, but there were more facets to it than that. Debt consolidation loans were the in thing at that time. They were not a bad idea but you have to remember that not everyone was able to manage a consolidation. There were so many people who would fall prey to the “we will custom taylor your mortgage just for you”, only to find out that the talk behind it was “I will service you, and check in with you everyday to let you know what is going on.” This is great, and it’s good service for the customer, but what about the loan itself? Are they going to be in more debt, or a high rate that they really cannot afford? Or, are they going to be in a loan that will provide them with a lower monthly payment, and will help pay their bills? That is a custom loan to me; one that is tailored to their needs, but not a subprime loan.

A custom mortgage means that there are no two loans alike. Some will need to do a streamline FHA loan, and some will need to do a debt consolidation loan. It is really that simple, but sometimes mortgage brokers make it hard. Now that banks are more respected than brokers, it makes it hard for someone to get a loan that is out of control with high fees and lack of benefits. Just remember, the loan has to make sense in order for the bank to do the loan.

For more information on a custom mortgage, and what this means now, you can go to www.fhaloansnow.net.

-Mayer Dallal