Home Mortgage Guide

Us Bank Home Mortgage Payment Section


 


Social bookmarking
You like it? Share it!
socialize it

Newsletter

Subscribe to our newsletter AND receive our exclusive Special Report on Home-Mortgage
Email:
First Name:



Main Us Bank Home Mortgage Payment sponsors


 

Latest Us Bank Home Mortgage Payment Link Added

INSERT YOUR OWN BANNER HERE

Submit your link on Us Bank Home Mortgage Payment!



Newest Best Sellers


Welcome to Home Mortgage Guide

 

Us Bank Home Mortgage Payment Article

Thumbnail example. For a permanent link to this article, or to bookmark it for further reading, click here.

Home Mortgage Rates: Interest Only Options

from:

Some 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.




Other Us Bank Home Mortgage Payment related Articles

Us Bank Home Mortgage
Wells Fargo Home Mortgage
Home Mortgage Calculator
Home Mortgage Online
Home Mortgage Loan

Do you want to contribute to our site : submit your articles HERE


Us Bank Home Mortgage Payment Specific links

Us Bank Home Mortgage Payment News