Do You Know the Pros and Cons of Interest Only Mortgage?Written by Marie-Claire Ng
Has any lender ever told you Interest Only Mortgage was like a double-edged sword? It can help you achieve your dream of owning a home more easily, but it also can create a financial hardship for those who don’t fully understand what’s involved.In attempt to lure potential homebuyers, lenders have come up with various creative mortgage options. One of more popular offers is Interest Only Mortgage. As name implies, with Interest Only Mortgage, monthly payment will be applied to interest portion only. In a traditional mortgage option, monthly payment applies to both interest and principal, even though, in early years, interest portion is much more than amount paid to principal. Interest Only Mortgage has become more popular to new homebuyers for following reasons: · Since monthly payment is low, savings can be used for personal spending, paying off higher interest debts, buying furniture for new house, or even investing.
| | You don’t need 10% or 20% down to get a home loanWritten by Syd Johnson
The rapid increase in home prices over past couple of years have left many potential home buyers struggling to come up with their 10% or 20% down payment. If you live in a hot market like Los Angeles, Manhattan or Miami, you might be able to afford monthly payments on a home loan but have a hard time coming up with one time cash for a down payment.If you can’t come up with a 10% down payment, home mortgage lenders are becoming savvy to your plight and have created many different solutions to help you get financing for your new home. 5% down is an option One of top ways to get home mortgage financing is with a 5% down payment. This gives most customers a huge break on amount of cash that they need to purchase a home. In past, 5% down home loans were only available through government funded loans like Veterans Administration Loans.
|
