Welcome to Home Mortgage Guide
Home Loan Mortgage Refinance Mortgage Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Home Mortgage Rates: Interest Only Options
from: Mortgage & Debt FactsSome homebuyers find that they fall short when it comes to getting a property loan that they can afford. If you have your heart set on a particular home but you are not able to meet the requirements with a traditional mortgage with a fixed rate, you may want to consider interest-only loans.
Home mortgage rates come into play in this type of loan, of course. Homebuyers that can’t afford a traditional loan may find that they can afford an interest-only program instead. This type of advance typically requires a lower monthly installment which is ideal for some people.
There are some things to think about before delving right into this type of loan. When home mortgage rates are the primary factor in the monthly payment, the principal seems to fall to the wayside. This can make paying off the loan in full very difficult.
Principal versus Interest
The principal is the actual amount of the loan without taxes, insurance and interest figured into the mix. If you purchase a home for 220,000 dollars and make a down payment of 20,000 then the loan’s principal would be the difference or 200,000 dollars.
Interest is the additional money that the bank earns over the course of the loan. The total interest paid on the loan depends on the home mortgage rates at the time that you sign the agreement. The interest is figured into your monthly payment as an integral part of the loan.
Interest-Only Mortgages
When you adopt an interest-only mortgage, you do not have to pay on the principal for the first five years of the loan. Some lenders even allow clients to go ten years without paying anything on the principal. The result is a significantly lower monthly payment.
This type of loan is ideal for someone who wants their dream home but does not want hefty monthly payments that go along with it. The interest-only option is also great for people who expect a significant pay increase in the next few years. They already have their mortgage and they can make additional payments to address the principal.
This type of loan is definitely not for everyone. It is important to remember that you will not be building any equity during the time that you are making the interest payments. This means that you will still owe every penny on the principal loan even after making payments for five or ten years. You might as well rent.
Home mortgage rates are valuable tools that can help consumers decide if the interest-only loan is right for them. This type of loan is only for individuals who have the drive and fortitude to make larger monthly payments when they can to reduce the principal.
Home Loan Mortgage Refinance Mortgage Specific links
Home Loan Mortgage Refinance Mortgage News
Banks Take It Easy, While Miami Struggles Against Foreclosures - Huffington Post
 National Legal and Policy Center | Banks Take It Easy, While Miami Struggles Against Foreclosures Huffington Post But here in Miami, the virtual "ground zero" of the housing, mortgage, and foreclosure crisis, we're wary. Maybe we witnessed the "boom" too closely. We saw way too many homes being sold for more than what they were worth and saw way too many banks ... VA Participates in Settlement with Mortgage Banks National Mortgage...Fiasco? Some Doubt a Settlement Will End Mortgage Ills |
Quicken Loans Unveils Free Mortgage Calculator App - Midland Daily News
 CBS Local | Quicken Loans Unveils Free Mortgage Calculator App Midland Daily News Quicken Loans Inc., a 50-state lender of refinance and purchase mortgages, has unveiled the Quicken Loans Mortgage Calculator App to help consumers determine their best home loan options from the palm of their hand. Whether a current homeowner is ... Quicken Loan Rolls Out Mortgage Calculator App |
FHFA releases plan for Freddie, Fannie exit - Washington Post
 eCreditDaily.com | FHFA releases plan for Freddie, Fannie exit Washington Post The hope is that as the cost of receiving a taxpayer-backed mortgage goes up, more borrowers will turn to the private sector for loans. But the effort is in tension with other measures being pursued by Fannie and Freddie and the Obama administration to ... Gov't seeks smaller role for Fannie, Freddie Regulator proposes plan to reduce Fannie, Freddie involvement in US mortgage ... Fannie, Freddie Seek New Mortgage Securities Platform |
Wright-Patt Credit Union lent $300M in 2011 home loans - Bizjournals.com
Wright-Patt Credit Union lent $300M in 2011 home loans Bizjournals.com Wright-Patt Credit Union Inc. lent $300 million in home financing to its 2500 members last year, the credit union announced Tuesday. The previous year, the credit union provided $335 million, or 10 percent more, in mortgage lending to 2600 members. Nearly $1 Billion in Home Loans Made through Wright-Patt Credit Union Since 2009 |
A new AG raises his profile with mortgage deal - The Connecticut Mirror
A new AG raises his profile with mortgage deal The Connecticut Mirror By Mark Pazniokas Attorney General George C. Jepsen is walking a fine line between celebrating his role in negotiating a $25 billion national settlement with mortgage servicers and tamping down expectations about what the deal means for struggling ... |