Welcome to Home Mortgage
Home Mortgage Equity Lowest Mortgage Refinance Loan Rates Article
This is a selection made from among articles on Home Mortgage Equity Lowest Mortgage Refinance Loan Rates. For a permanent link to this article, or to bookmark it for future reading, click here.
Interest Only Loans. Before you make a decision, read this information.
from: Robert MooreInterest only loan is the one that gives you the possibility of paying only interest as your monthly payment. In that way you will pay a very reduced amount of money as your monthly payment; compared to the amount of money you would be paying if you add the principal to your monthly payments. Interest only loans can be 30-year fixed-rate mortgages or adjustable rate mortgages. You may find interest only loans on the market, for the first three, five, seven or even ten years. Home prices are continuously raising, so many buyers are choosing the interest-only loans option to reduce their mortgage payments and gain more financial freedom.
You may find an excellent source of information about Interest Only Loans at: www.findhomeloansonline.com
The biggest advantage of an Interest only mortgage is that you will have a reduced monthly payment; in that way you will count with extra money for other purposes. But, on the other hand, the disadvantage of it is the fact that you will not be paying anything towards the principal balance of your loan. It's important to fully understand the risks, when you decide to buy a property with an Interest only Loan. For the lender, the big advantage is that all the lender's money will be busy earning interest and none will be unprofitable return of principal, which the lender then has to lend to another borrower to keep earning interest.
During the interest only term your monthly payments are as low as they could possibly be, and you may qualify for a bigger property as well as for a bigger loan amount at the same time; and your whole monthly payment qualifies as tax deductible interest during the interest only period. If you are like most first-time home buyers, you will probably keep your property for a few years only, and then you will be moving up to a better home. Mortgage principal reduction then isn't important to you. An interest-only mortgage could be ideal for you.
It's important to understand that during the period of time you are holding an interest only loan, your property is building equity just as if you would be holding a fix rate mortgage. The type of loan you choose to buy your property will not affect the equity of your home.
About the Author
My name is Robert Moore, and on my over 10 years of experience working on the mortgage industry I have learned that the biggest mistake a borrower may make is to get a loan without getting enough knowledge of what is the best program on the market.
To learn more about Interest Only Loans, please visit:
www.findhomeloansonline.com
Copyright 2005 Robert Moore, All Rights Reserved.
Home Mortgage Equity Lowest Mortgage Refinance Loan Rates News
See today's average credit card rates across the country. - MSNBC
NEW YORK - Mortgage rates fell for the second day in a row Wednesday, and could be heading toward levels home buyers and owners haven’t seen this year. That drop is what the Federal Reserve was aiming for when it announced a plan Tuesday to buy ...
Read more...As Loan Rates Fall, Borrowers Seek 'Taste of the Bailout Pie ... - Washington Post
Would-be mortgage borrowers have rushed to refinance their loans and even weighed plans to buy homes following the government's move this week to loosen consumer lending. With interest rates suddenly plummeting, "the phone is ringing, the e-mails ...
Read more...Mortgage brokers seeing more refinancing - WRAL
Raleigh, N.C. — New numbers out Wednesday show national sales of new homes are at their lowest point in 18 years. But when it comes to pre-owned, the days of bargain hunting here may be over. The Federal Home Finance Agency reports prices are still ...
Read more...Seeking a Piece of 'Bailout Pie' - Washington Post
Would-be mortgage borrowers have rushed to refinance their loans and even weighed plans to buy homes following the government's move this week to loosen consumer lending. With interest rates suddenly plummeting, "the phone is ringing, the e-mails ...
Read more...Borrowers look for a 'taste of the bailout pie' - MSNBC
Would-be mortgage borrowers have rushed to refinance their loans and even weighed plans to buy homes following the government's move this week to loosen consumer lending. With interest rates suddenly plummeting, "the phone is ringing, the e-mails ...
Read more...Mortgage rate drop spurs surge in interest - San Jose Mercury News
Borrowers descended on the home loan industry Wednesday after the federal government's latest move to shore up the financial system sparked a sharp drop in interest rates. Local brokers said business picked up immediately as rates dropped from 6 ...
Read more...