Finance: Do You Know the Pros and Cons of Interest Only Mortgage?

Do You Know the Pros and Cons of Interest Only Mortgage?

Written by Marie-Claire Ng

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· The interest paid to repparttar

Interest Only Mortgage is still eligible for tax write-off at repparttar 112113

end of

year. · Some Interest Only Mortgages allow you to make a principal payment during repparttar 112115

interest only period. This helps reduce your balance repparttar 112116

following month which lowers your payment further.

However, Interest Only Mortgage is not for everyone. · Beware a potential prepayment penalty for repparttar 112117 first 1-3 years imposed by some lenders. · You have to play repparttar 112118 “catch up game” once you begin to pay repparttar 112119 principal. The amount is much more since you didn’t pay during repparttar 112120 interest only payment years. · Think twice before committing to an Interest Only Mortgage if it’s repparttar 112121 only way for you to afford a house.

How to pay off your mortgage in 10 years or less and build lots of equity from your home? www.1a-refinance-home.com

You don’t need 10% or 20% down to get a home loan

Written by Syd Johnson

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Zero down and low down payments options Now, many lenders including banks, credit unions and mortgage companies will work with their customers to offer low down payment deals. In addition, you can also do a zero down mortgage. In this case, repparttar entire loan amount will be financed so your monthly payments will be higher than it would have been with a down payment. Also, your home mortgage lender might charge you a slightly higher interest for taking on repparttar 112112 risk of approving a client without a down payment.

One of these methods will sure work for your so don’t hesitate to get preapproved for your home loan today.

This article may be freely distributed as long as there's an active link to http://www.rapidlingo.com Syd Johnson Editor

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