Past Philosophy of lenders
The
lender offers the general following philosophy as to why there is such a
high demand for their low payment rate products. The thirty year mortgage
worked well in our great grand parents generation. They lived in a different
day and age. Typically the last thing they would do is refinance their note.
They believed in paying it off and burning the note, which was wise. How
many people do you know today that have had a 'note burning' ceremony?
Refinancing was avoided at all cost, for disturbing the note was detrimental.
In the old days, people typically had one job, no credit cards and a pension
fund, a passbook saving account and a retirement account they could count
upon. People didn't move as much or get divorced and refinancing wasn't
as common. It was a simpler day and age and the 30 year block mortgage
served their needs well. It was designed for them. It was a stable financial
lifestyle, but times have changed and so have your options.
