It's Not About the Nail (Rate)!
One of my favorite short videos of all time. I've always wanted to do a parody of this called: 'It's not about the rate'.
In the parody, we'd have the husband and wife with a giant % sign on their foreheads talking about the rate. I'd be asking them questions like:
Product - how will you manage your risk? how long will you live in the house? do you tend to be more disciplined with your financials or not?
Payment - how long would you like to have this mortgage before you pay it off? what do you do with extra cash flow you have now? what kind of return do you expect that money to earn?
Availability - do you know how much you can borrow today? would you pay cash for the house if you could? does you income vary over time? would you want to use money you put in the house for other reasons in the future?
Amount - how much available cash do you have outside your house now? how do you access that today? how important is a specific payment to you now? what would you do with money you don't put into the house?
Is the rate important? Yes. That said it's not about the rate... the rate will change this week, and while you live in the house it will continue to change. What is less likely to change over the time you'll be in this house? That's what we want to understand to provide good advice.