40-Year Mortgages: An Alternative to Interest-only Loans?

Written by Chris Rocks


Continued from page 1

Until recently, these loans were difficult to find. Fannie Mae has now announced they will begin purchasing these loans from lenders which should increase their availability.

Let’s look atrepparttar numbers:

For a $250,000 loan with a fixed interest rate of 5.75% and a term of 30 years,repparttar 140012 monthly payments would be $1,458.93; but a borrower could save $83.40 a month by taking out a Fixed 40-year mortgage. Even at a higher interest rate of 6.00%,repparttar 140013 monthly payments would be just $1,375.53.

The monthly savings comes with an increase in overall interest:

If a borrower were to keeprepparttar 140014 Fixed 40-Year Mortgage forrepparttar 140015 entire term and makerepparttar 140016 minimum monthly payments, they would pay approximately $135,000 more in interest.

40-Year Mortgages may be attractive to those borrowers uncomfortable with adjustable rate periods or who have difficulty qualifying underrepparttar 140017 stricter guidelines of an interest-only loan, however, it is important to understandrepparttar 140018 impact a 40-Year term will have onrepparttar 140019 overall cost of your loan.

As always, it’s best to consult with your trusted loan professional. They can help you understand your options and determine which loan product is best for you.

Chris Rocks is a successful Mortgage Consultant and writer based out of Chicago, IL.

Website URL: http://www.loansbyrocks.com

Contact Email Address: chris@loansbyrocks.com


New car financing

Written by Jakob Jelling


Continued from page 1

Just as different cars have different features, different lending companies have different options too. Banks generally offerrepparttar best rates and terms for loans but sometimes third party lenders can be a better choice. You may find more favorite interest rates from an online lender who has less over head than a storefront business. You may be able to get other financial products from a third party lender atrepparttar 139991 same time that are of value to you.

The process of shopping for a new car should be your model for how to shop for a financing solution. Takerepparttar 139992 time to consider your situation andrepparttar 139993 services that various lenders will provide before you settle on a vehicle. You may even find it prudent to have secured your loan before your even go out to look at vehicles.

Jakob Jelling is the founder of http://www.cashbazar.com. Please visit http://www.cashbazar.com/loans.shtml to learn about the loans that suits you best.


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