Some of my favorite finance advice comes from the Washington Post’s finance columnist Michelle Singletary.  For instance, in a recent article, Ms. Singletary recommended a book by a mortgage broker that can help the average homebuyer understand the ins and outs of home loans.  The best mortgages are found when you understand the business — for instance, when you understand the risks of an ARM or adjustable rate mortgage, and when it is appropriate to take these risks.

In her article, Ms. Singletary also discusses how the current slump in the housing market can actually benefit homebuyers.  With many sellers becoming desperate to close a sale, potential buyers have more room for negotiation.  Lower prices also mean that buyers can get smaller FHA loans, making the best mortgage rates available to them: Because the house’s lower price makes it more affordable, the buyers are therefore seen as less likely to default on the loan.

Although many people are concerned about the slump in the real estate market, others — such as Michelle Singletary — can point out the advantages of the situation.  In this case, the same market conditions that are frustrating sellers can actually be a boon to buyers.  Don’t forget the rest of Ms. Singletary’s advice, though: In order to avoid getting stuck in a risky mortgage, you need to make sure you know the ins and outs of the mortgage business.

Technorati Tags: best mortgages, FHA loans, best mortgage rates