By Barrett Niehus http://www.freetrainer.com

Rates on mortgages are lower than they have been in forty years. This provides a huge opportunity for new and existing home owners, but also carries risks that can have a substantial impact your ability to pay in future. Mortgage lenders are inundated with work, and it was recently reported on national news that “if you can breath, you can get a mortgage.” This phrase should at very least frighten average mortgage customer. It indicates that not only are mortgage companies finding new ways to make money off of their huge list of clients, but they are also circumventing risk analysis that avoids putting high risk customers into immediate credit trouble.

The opportunity is immense. For many home owners, monthly mortgage payments can be reduced by ten to fifteen percent through a refinance. For new home owners, they can afford to pay ten to fifteen percent more because of resulting low monthly payments. The benefits are substantial and if addressed properly, risks can be avoided.

The risk of course is choosing a form of financing with inherent uncertainties and putting your long term financial situation at risk. One of most popular mortgage products available today are variable (floating) rate mortgages. The mortgage rate varies with current Treasury rate until it is locked in at a set amount above future treasury rate three to five years after date of origination. Many mortgage customers are fond of this type of funding because it allows them to enjoy a very low rate for next three or five years. Unfortunately, risk involved with this type of loan is huge, and can have substantial impact on customer’s ability to pay.

Those with Internet access can tap a wealth of helpful information. There are websites galore about all sorts of topics related to money. The one problem Gram has found is that, often, you have to be a financial wizard to figure it all out. But Gram recently partnered with Terry Rigg, Sr., of Budget Stretcher at http://www.homemoneyhelp.com In my view, Grandpa Terry IS a financial wizard. He publishes a monthly ezine, and offers a dandy ebook chockful of helpful ideas and advice about most every area of typical spending and saving -- "Living Within Your Means - The Easy Way" for $10., plus several helpful free downloads. Also, he offers free assistance for a budget question on request, and his excellent budget analysis for $9.95 can put you on right track where your finances are concerned.

As a real-life example, Grandpa Terry pointed out to Gram that what she owes on credit cards eclipses interest earned on her paltry 401K investment (and how! what with craziness of stock market these days). So why not pay off those credit cards pronto? This may well be one of those "can't see forest for trees" situations -- because Gram really hadn't thought of that, a small thing that can add up to additional savings.

Again, visit Budget Stretcher at http://www.homemoneyhelp.com And while you're there, please note other "partners" near bottom of Budget Stretcher Home Page. You can spend a weekend of informal study at these helpful websites, and come away from your research with many new tools for controlling what happens to your money.