Forest for the Trees

When you make the decision to buy your first home, it can be easy to lose the forest for the trees. This is particularly true when it comes to mortgages. Selecting and applying for mortgages can be the stuff of a mental breakdown. Let’s simplify things for you. The key thing to look for is the pre-payment penalty. Avoid this if at all possible. If you can’t, limit it to a year or so. Why? If you subsequently find you didn’t get a very good deal, your solution is to refinance the mortgage. A nasty pre-payment penalty can lock you into a bad position.