Do
You Know the Pros and Cons of a Interest
Only Mortgage?
by Marie-Claire Ng
Has any lender ever told you the 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.
Interest
Only Mortgage has become more popular to
new homebuyers for the following reasons:
- Since the monthly payment is low, the
savings can be used for personal spending,
paying off higher interest debts, buying
furniture for the new house, or even
investing.
- The interest paid to the Interest Only
Mortgage is still eligible for
tax write-off at the end of the year.
- Some Interest Only Mortgages
allow you to make a principal
payment during
the
interest only period. This helps
reduce your balance the following
month which
lowers your payment further.
However, Interest
Only Mortgage is not for everyone.
- Beware a potential prepayment penalty
for the first 1-3 years imposed by some
lenders.
- You have to play the “catch up game”
once you begin to pay the principal.
The amount is much more since you
didn’t pay
during the interest only payment
years.
- Think twice before committing
to an Interest Only Mortgage
if it’s the only
way for
you to afford a house.
Marie-Claire Ng may be contacted at dtt@mcvt-groups.com
. Click here to view more of their articles.
How to pay off mortgage in 10 years or
less and build lots of equity from your
home?
www.1a-refinance-home.com
Interest Only Mortgage Advice ClipsHome sweet loan: Using a 401(k) loan for a down payment - The State
Faced with a real estate market that has tightened up lending standards at a time when home values are dropping, more people are borrowing money from their 401(k) retirement plans to help swing a down payment to buy a home. But before you think that ...
Make Room To Beat Housing Gloom - Ananova
Property expert Roger Southam has given Sky News online his top advice for getting value for money in a tough housing market. Most British homeowners are not making the best use of their homes and are wasting up to a whole room of space. Never forget ...
Homeowners Face Negative Equity Breakout - Best Syndication
If you bought a home in the last five years there is a one out of three chance that you now owe more on your mortgage loan than your home is worth. Yipes! Could that possibly be true? That bad news comes from Zillow.com. Zillow.com is the online ...
Democratic convention 2008 - Guardian Unlimited
I can't find a picture online yet, but I just saw on TV an overhead shot of what appears to be the backdrop being set up for Obama's speech at Mile High Stadium. Obama will apparently be framed by Roman columns. Wingers are already jumping all over ...
|
