A Financial Analysis of Consumer Mortgage Decisions

Mortgage Bankers Association (June 2009)

With housing prices falling and mortgage rates near historic lows, many homeowners are tempted to take advantage of this by buying or refinancing. However, due the complexity of the mortgage market, despite all the available disclosures, many consumers are still left in the dark, and by not considering all the necessary facts, they often leaves thousands of dollars on the table.

This guidebook applies standard, well understood approaches and tools used by financial professionals, to provide financial planners, housing counselors and consumers with a clear road-map, to make the best decision on how to choosing a mortgage, when to refinance a mortgage, and when to pay down a mortgage versus investing.