Countrywide Mortgage

Countrywide Mortgage - The Anti-equity Experts

If there is one lender in operation today fighting the good fight for the little guy, its the Countrywide mortgage company. Bad credit applicants, applicants with low incomes or from under-served neighborhoods - finally everyone has a reliable resource for quality, stable, mainstream home financing. They do it by the following:

• High approvals - Countrywide sets the bar a little lower than other lenders, approving individuals for whom approval simply wasn't possible before.
• Focused results - You want a home? Countrywide will get you that home. It might come at the expense of equity gains and future loan stability/flexibility, but for the people benefitting from a countrywide mortgage these are unnecessary advantages.

Or are they? Should you sacrifice a sure contribution to your home equity for the sake of home ownership?

Is a Countrywide mortgage good for your equity?

In a word - no. The one place where a Countrywide mortgage fails its users is in the contributions to equity gains, to the loan principal that is the root source of equity.

• Lets say you have bad credit and qualify with Countrywide for a $250,000 mortgage on a $275,000 home.
• We're pretty sure you'll pay an adjusting rate, and you'll probably be forced into an interest only term of anywhere from 3 to 10 years.
• During this time all your payments will be going toward interest - they'll be low payments, but nothing will be going to paying off your loan principal.

Now, up until only the most recent times this would have been ok - home equity was a given for new home owners with home appreciation rates blasting off all across the country. BUt with housing prices slowing down but still incredibly expensive, these home owners are going to have to start thinking about their equity futures whenever they apply for a countrywide mortgage.

So rip out that mortgage calculator and get ready to search for your other available options - because while Countrywide is indeed good they are by no means the only game in town. See how much you can actually afford in monthly payments and look for a lender who can offer you something within that level of affordability. If you can find something that encouraged equity growth, go for it!

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