Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You [Paperback]

Author David Reed has done it again! I read his first book, Mortgages 101 and like it so much that I bought this one without any deliberation. I have been reading his column in Realty Times for years, and always enjoyed them.
In a clear, concise, easy to read manner, the author has set forth in simple and easy to understand terms the truth about mortgages and mortgage lending. Everything is explained, such as where mortgage money comes from, to how Annual Percentage Rate is determined to shopping for a loan and (hopefully) avoiding some "junk" fees. Also included is the commonly misunderstood diferrences between a Bank, a Mortgage Bank, and a Mortgage Broker. All this ads up to a great book to read for the consumer who is shopping for a mortgage loan. Details too numerous to explain here, but you won't regret buying this book, if you are eithar purchasing a home or refinancing. The "confidential" part of the title is the stuff Loan Agents know, and he has made it available to the reader.

One very miniscule flaw I picked up, with perhaps no relevance, is on page 150: It states that rate caps protect you, "even if they go into the 20% range as they did in the late 1980s." I think he meant the early 1980s. A time we'd all like to forget...

Another interesting thing I picked up was that he did address the once popular pick-a-payment loan, which I like in certain circumstances and he has disdained in his column. They do work well for some people in some situations, and I was glad to see him recognize that (page 159), although he does advise to people to avoid them. Glad to see a slight concession.

This is a highly informative book, which doesn't include a lot of math (the only math, really, is easy to understand graphics), which makes it the best book on the market to easily understand the whole process of lending- being a consumer or loan officer. Good job on this book Mr. Reed! Buy this book--you won't regret it...

This is a well-written easy-to-follow book that keeps you glued to it. The only small criticisms I have are that the book really should have a bullet-point summary at the end of each chapter so readers can refer to for practical use. There is so much to remember that as written, it is not in a format enabling one to use in the real world unless you memorize everything.

Also, the book would have been more useful if it were written a few years ago. Now and in the future, some of the secrets exposed will not be applicable due to the expected overhaul of this corrupt and abusive industry. However, many things won't change. Even still, these changes will take several years. Therefore, this book is a must-read if you plan to get a mortgage. If I could, I would give it a 9 of 10 stars (instead of 4 of 5). Overall, well done. We need more books exposing the corruption and deceit by industries in America.

David Reed's MORTGAGE CONFIDENTIAL: WHAT YOU NEED TO KNOW THAT YOUR LENDER WON'T TELL YOU tells everything a lender won't about what they really look for in an application before approving a loan, and is a pick for any solid real estate collection and for any who would understand the loan process. From qualifications for different size loans to avoiding scams and maximizing chances for loan approval, MORTGAGE CONFIDENTIAL is an invaluable guide.