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When it comes to financing your home, the only rule of thumb that is true, is that:
THERE ARE NO GENERAL RULES OF THUMB!
Every individual and situation is different.
Without question, the so-called "financial experts" you see on morning television do a terrible job of applying "rules of thumb" that cause many people to make financing decisions that are poorly thought out. In financing, a little bit of knowledge is a dangerous thing.
Don't let anyone persuade you to make financial decisions that are "right" for you, based on what someone else is doing. Or from some "canned" advice that you saw on "Good Morning America" or the "Today Show."
DON'T FOLLOW THE "CANNED" FINANCIAL ADVICE
THAT YOU SEE ON TELEVISION!
Every "financial expert" you see on television today has some "rule of thumb" about how many percentage points lower interest rates should be, before it makes "sense" to refinance your current mortgage.
General financial advice like this is very misleading and costly.
Every individual or family situation is different.
Often times, with credit card bills, auto loans and other circumstances, it is very beneficial to finance your mortgage in a manner that directly disproves the "one size fits all" advice of the so-called "financial experts."
Sorry about the soap box speech here but...
Please understand, someone else's financial "rules of thumb" mean absolutely nothing to you and your family. Your decision to buy, sell, finance, or refinance your home should not be influenced by generalized "rules of thumb" that you see on television or read in some magazine.
Don't let any self-proclaimed television financial guru persuade you to believe otherwise.
Forget about generalities!
What matters is, preparing the specific financial calculations for your personal situation so that you can intelligently determine what is truly to your best financial advantage.
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