It’s wrong if you think you can always refinance your mortgage in the future.

Thanks to the government’s plan to buy $600 billion of mortgage debt, mortgage rates on fixed 30-year loans declined this week, ushering in a slew of mortgage applications. If interest rates go lower you can refinance again, if interest rates go higher then you missed your chance.

I have a dream house but I need a lender to offer me mortgage that I can afford. Mortgage lenders with good reputation will offer borrowers something they can afford; others may not be as sensitive towards borrowers’ affordability.

Depending on the terms of your loan, your monthly payments could increase — in some cases dramatically. Read more to understand…

Wednesday, President-elect Barack Obama named a board of economic experts from outside the government to advise him. Obama made the announcement at a morning news conference in which he tried to reassure Americans that he already had a plan to help US economy.

When you have a conventional mortgage, (a 15 – or 30 – year fixed rate product), your principal balance will fall every month because the product requires you to pay down both interest and principal each month and allows you to reduce (amortize) your loan amount.

Interest-only home loans have become more popular because of its flexibility. For a certain number of initial years, you have the choice of paying only the interest, and therefore, you free your cash flow for more immediate purposes. Without this flexibility, the amount of interest and principal can accumulate significantly if not faithfully serviced.

Home loans are available from several types of lenders-thrift institution, commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you should contact several lenders to make sure you’re getting the best price.

On Sunday, the government of the USA agreed to provide funds to guarantee the bank giant Citigroup, by moving to guarantee $306 billion in troubled assets on the bank’s books. Wall Street investors reacted enthusiastically. The Dow Jones industrials shot up about 300 points in morning trading.

To get the best mortgage program, there are some early actions that you should do. You need to remember, whether it is home equity loans, student loans, mortgage refinancing, consolidation loans, etc, it is all a product, such as car or home, so the price or terms can be negotiable.