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Mortgage Suitability

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Definition of 'Mortgage Suitability'

A standard to which mortgage lenders can adhere when directing consumers to a mortgage loan. Under such a standard, mortgage lenders would be held liable for steering consumers toward an unsuitable mortgage. While no federal suitability standard currently exists, lenders are vehemently opposed to such a standard because they argue that they cannot possibly collect and know all of the information required to make a decision for a consumer.
Investopedia Says

Investopedia explains 'Mortgage Suitability'

Mortgage financial literacy is an alternative solution to setting suitability standards. The choice of a mortgage is a standard risk versus reward scenario, which is prevalent in most financial decisions. Informed and educated consumers can make effective mortgage decisions in the context of risk versus reward.

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  6. 6 Tips For Selling Your Home Fast

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  9. The Dangers Of A Reverse Mortgage

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  10. Automatic Cancellation Of PMI When You're Underwater On Your Mortgage

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