Quote

In the old days, when you took out a mortgage, it was probably through a local bank or a credit union, and whoever gave you your loan held on to it for life. If you lost your job or got too sick to work and suddenly had trouble making your payments, you could call a human being and work things out.

I ran a 'loan modification machine.'

It's easy to get a loan unless you need it.

As someone who has owned a small business in the past, I understand how difficult it can be to get a loan.

My dad did everything he could. It was a start-up, and the banks didn't want to lend him enough money, so he mortgaged our house.

Especially if you're over 40, shortening the term of your loan to pay it off sooner could make you mortgage-free in retirement.

When I got a deposit on my very first cake, I took that deposit and I bought some cake mix with it. I've never taken a loan - ever. And we're doing this expansion just like everything we've done in this bakery as we've grown. If we weren't able to afford paying for something cash, we didn't buy it.

Never cosign a loan. Once you have cosigned, you cannot get out of it - even on your deathbed.

Generally, there are three rules when it comes to borrowing money: You need to have good credit, proof of income and cash for a down payment. Most people have the first two, but it's the third that trips them up. And nowhere does that come into play more than the mortgage market.

While I encourage people to save 100% down for a home, a mortgage is the one debt that I don't frown upon.