Welcome to Home Mortgage
Us Bank Home Mortgage Article
This is a selection made from among articles on Us Bank Home Mortgage. For a permanent link to this article, or to bookmark it for future reading, click here.
Should you Get an Interest-only Home Mortgage?
from: Jeff LakieBefore you consider taking out an interest-only mortgage, you should first understand what they are. Unlike traditional, fixed-rate mortgages, interest-only mortgages allows the borrower to initially pay the interest on the principal for a short period of time, rather than making payments on both the principal and the interest. This is how it works: say, for example, you've taken out a mortgage for $100,00.00, which would require a monthly payment of around $1,000.00. However, with an interest-only mortgage, the same payment would only amount to around $695.00. You could use the extra money to pay existing debts, like credit cards or student loans, or perhaps invest it.
The concept of an interest-only home loan is not a new one. A descendant of the jumbo market, these types of mortgages were initially geared towards those who intended to utilise the excess cash for other types of investments. This is an ideal option for the market-savvy investor, as it frees up some income for other projects. However, this type of mortgage has now entered the mainstream market, and is available to most home buyers.
There are many benefits associated with taking out interest-only loans. They allow younger buyers to take advantage of a developing real-estate market, giving them the opportunity to afford a slightly higher priced home.
Before taking out an interest-only mortgage, there are few things that you must take into consideration. While the thought of only having to pay for interest for the next few years may seem very tempting, you must remember that when the interest-free grace period is over, you will have higher payments than you would have with a traditional mortgage. Many young couples do not account for this, assuming that they will be earning more money in the future, not anticipating that they may face financial hardships down the road, thus putting their home at risk.
While there are many advantages to taking out an interest-free mortgage, it is important to remember that the grace period will not last forever and that the monthly payments will eventually go up. As long as you make financial plans for the future, taking advantage of an interest-only mortgage could allow you to increase your financial well-being, bringing you peace of mind.
Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get online mortgage quotes and mortgage information.
Us Bank Home Mortgage News
Global creditors end U.S. spending spree - The Washington Times
Political and financial leaders always knew that the inevitable end of the great debt binge would be painful, forcing Americans to dramatically cut back spending and bringing on a long, deep recession that Mr. Stanley and other economists are ...
Read more...Fuld May Blame Confidence Crisis for Lehman's Fall at Hearing - Bloomberg
Oct. 5 (Bloomberg) -- Richard Fuld , the chief executive officer of Lehman Brothers Holdings Inc., may tell legislators angry about Wall Street's excesses that eroding confidence in the financial system led to the demise of his firm. Fuld's testimony ...
Read more...Mortgage Foreclosures - The Ledger
Roig, Francisco, Marlenis Caballero, et al.; by Citimortgage, Inc. (08-0972) Romo, Zuleika, et ux., et al., Lot 217, Legacy Park Phase One; by Accredited Home Lenders, Inc., a California Corp.. (08-0434) Rosa, Anthony, et ux., et al., Lot 13, Block ...
Read more...Citigroup Says Court Orders Continued Wachovia Talks (Update2) - Bloomberg
Oct. 5 (Bloomberg) -- Citigroup Inc. said a New York state court judge extended the bank's sole right to negotiate with Wachovia Corp. after Wells Fargo & Co. launched a competing bid for the North Carolina lender. New York State Supreme Court Judge ...
Read more...RGJ provides an in-depth look at how financial instruments work - Reno Gazette
Credit default swaps. Derivatives. Mark to market. Mortgage-backed bonds. Like the Four Horsemen of the financial apocalypse, these have been bandied about as primary players in the collapse that continues to grip financial markets worldwide ...
Read more...PM's three-year deposit guarantee - News.com.au
KEVIN Rudd today announced the Government would guarantee all deposits being held in Australian financial institutions for the next three years. The blanket guarantee was one part of a three-pronged plan to further safeguard Australians from the ...
Read more...