According to the LA Times, mortgages are at the lowest level in 14 years. Despite access to very affordable housing and low interest rates, mortgages are down 1/3 since 2010 and reached it’s lowest point since 1997. What they don’t mention is that the banks are making it next to impossible to obtain financing. Even the best applicants get dragged through the ringer and scrutinized in this costly process. I’ve seen a few of my clients go the evil empire, I mean the banks, for financing and it seems to add as many years to their lives as a president half way through his first term.

Of course not everyone can be a cash buyer so for many people there are no other options. As an ex-mortgage broker who had seen the rise and fall of the housing market during the sub prime heyday, I believe obtaining lending from a bank should be the absolute last option. If private financing is not an option or is too costly, I advise you to check into a local credit union to see what kind of loan programs they can offer. If you have to get a loan from a traditional lender, be sure it’s a fixed loan and if possible get yourself setup with a mortgage accelerator that allows you to pay off a 30-year loan and as little as 7 years, saving tens or even hundreds of thousands in interest.