If they want something that they can't afford then, if they are living by their budget, they won't be able to get it right now. However, if they plan their budget correctly they will eventually be able to get what they want and know that they can afford it.

Almost all of people that I have counseled over years either don't have a budget in place or wouldn't have any idea of how to start one. This is one of main reasons that so many people are having serious financial problems.

Then you have people that start a budget and within a few days or weeks it's just sitting in a drawer somewhere. Chances are that budget they had was too difficult and takes entirely too much time to manage. That's a big mistake.

A budget should be as simple as possible and take only a few minutes on payday to manage. Sure, it does take some time and effort to setup your budget properly but after that you just sit down on payday, write out your bills, make a few notations on your budget forms and do some filing. This is what it takes to stick to a budget.

The best part about having a budget is that you will always be able to answer question we ask ourselves many times in our lifetime, "Can I Afford That". You will have answer at your fingertips. Yep, sometimes answer will be NO!

Combination Fixed and Adjustable - Going to be in your house for just a few years? This type of home mortgage loan can start out as a fixed rate for a set number of years, keeping your rate and payments low, and then loan adjusts. Like adjustable rate, amount of adjustment is tied to an index that can go up or down. This loan is sometimes called a two-step or convertible ARM. Just remember, these loans usually go up after a set period of time, or if you have to convert after a few years it can cost you money. Be sure you understand your loan and when your payments could go up to avoid paying more than you have to.

Balloon - An interest only loan. You would only want to use this loan if you were only staying for a short time in your home. Because you’re only paying interest, and nothing towards principle, you don’t build any equity. At end of loan term, you have to pay balance off all at once, but few people ever keep these loans for entire term.

Having an understanding of these basic types of loans and combinations of them is key to finding mortgage loan that is right for you.