Best Interest Only Home Mortgage Loan
Want to purchase a home but are unsure how you can afford it? Let us help you find the right home mortgage loan for you. Whether you need an 80/20 or interest only mortgage loan we can help. We understand that it isn’t feasible for everyone to have the 20% needed to get a standard home mortgage loan. In fact, in this day it is nearly impossible to save up any money at all!
What is an interest only home mortgage loan?
An interest only home mortgage loan is a type of loan is that your monthly payments will only include the interest amount, not the principal. For example, a standard payment on a home loan may be $1345.00 per month. Interest only loans generally have a period of five to ten years, after that time your loan becomes a standard ARM loan. At any time during the interest only period you are able to pay towards your principal. With an interest only home loan your payment will be closer to $995.00 a month. An interest only mortgage home loan has several advantages for those who are financially minded. Interest only home mortgage loans reduce your monthly mortgage payments thereby freeing up funds for other things. Some use the extra money to invest, or to pay off other high interest debt.
What is an 80/20 home mortgage loan?
A 80/20 home mortgage loan is a way to finance your home mortgage loan at 100%. How this works is the borrower takes two loans, one for 80% of the appraised value of the home and the other of 20%. This is very popular because with this type of home mortgage loan there is no need to put any money down. The only cost to you is the closing costs. With an 80/20 loan you may find your monthly payments to be a little higher than with a standard fixed rate home mortgage loan. Most people agree that this difference in pricing is acceptable due to not having to come up with a high down payment.
Whether you’re looking for an interest only mortgage loan, an 80/20 loan or anything else we can help. Call one of our highly skilled financial experts today and they can help you determine what the best home mortgage loan is for you.
