I was reading an article entitled “Mortgages Go Back to Basics” by Rick Munch of Market Street Mortgage, Fairfax, VA, and was thinking about if mortgages were our friends who would be who. Mr. Munch’s point that led me down this thought process was:

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The changes bode well for consumers, since traditional mortgages are safer and rates are relatively low at present. Mortgages are now focused on solid long-term fundamentals that are sustainable, limiting the risk for both the home buyer and lender. In effect, the mortgage industry is shifting back to a less-frenzied market reminiscent of five years ago, where pragmatism was more acceptable.

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Well, we all know who the sub-prime mortgage is. The sub-prime mortgage is that kid you meet the first week of freshman year of high school who has some kind of piercing, no curfew, and skips a lot of class. And the traditional mortgage (an FHA loan, we’ll say) is the best friend you’ve known since kindergarten who overuses his inhaler and carries his rock collection in his oversized book bag.

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As I’m sure everyone knows, you hang out with Sub-Prime for awhile, end up with a .087 GPA and on probation. Then you realize the error of your ways, rekindle your friendship with FHA (who’s remained loyal while patiently waiting for you to come to your senses), and have a wonderful (but not-so-risky) remaining three years in high school. It’s just like that.

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