What about an Interest Only Loan - Is an Interest Only Mortgage the right fit
Released on = May 28, 2006, 6:58 pm
Press Release Author = David Domm - AboutYourHomeLoan.com
Industry = Financial
Press Release Summary = Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only mortgage payment option, you pay only the interest portion of the payment but no principal.
Press Release Body = Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only mortgage payment option, you pay only the interest portion of the payment but no principal.
For a interest only loan analysis contact us at 1-818-264-8989, express@aboutyourhomeloan.com, or visit http://www.AboutYourHomeLoan.com
If you plan on keeping your loan or being in your home for a while, it may be better for you to pay points to have a lower rate (yes, it\'s true) than to go with a no point loan which results in a higher rate. We use total cost analysis software to help determine what\'s best for you and what the total cost of your loan will be over time, not just the initial cost of your loan.
You may decide that a pay option arm loan may be the best fit for you with no points, or an interest only loan or 30 year fixed loan may be the best fit.
An interest only loan can be more expensive compared to a fully amortized loan in regards to rate but, depending on the total loan amount, the interest only option loan could free up a great deal of money each month. Most interest only loans do not penalize you if you choose to pay some principal as well which means that you can pay the interest only payment or the fully amortized payment each month.
Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan. Generally the interest only loan has a set time period that the interest only payment is available, like 10 years.
You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.
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