A Flexible Interest Only Solution for First Mortgages
Home Owners and Buyers with Bad Credit Take a Good Look at Interest Only Refinancing
Bobby is a new home buyer with a bad credit history and a baby on the way.
Or let's say he is an investor with a lucrative deal over the horizon for which he needs some extra cash on the side.
Millions of Americans like these two hypothetical, but typical, cases are now looking for alternatives to traditional 30-year home mortgages.
Interest only financing is an obvious solution not only for them but for those home owners who are thinking of refinancing as well.
These loans come in both adjustable-rate and fixed-rate options. Five and ten years are fairly common interest-only payment periods.
If you have a credit score of 560 or above, the chances are we can provide an interest only loan for you today.
Why do an increasing number of first time home buyers and home refinancing customers show this much interest in interest only mortgage loans?
Let's look at the anatomy of a typical mortgage payment before listing all the advantages of interest only loans.
A typical mortgage payment (A) consists of two parts: the amount that pays the principal value (the purchasing price) of the property (B), and the portion that pays the interest on the loan (C). We are excluding fixed costs like home owners insurance and property taxes from this analysis for the sake of brevity.
It is obvious that if one did not have to pay the principal portion (B), a mortgage holder's monthly payments would be smaller (A minus B). And that adds up to thousands of dollars saved over 5 or 10 years.
This is the main idea that underlies all interest only mortgages which require the consumers to pay only the interest portion for a number of years before the whole principal value is re-amortized over the remaining years of the loan.
Initially lower monthly payments (up to $300 or even $400 per month) mean one can qualify for larger loan amounts and own a better property. Or, in those neighborhoods where the property prices are already going through the roof, an interest only mortgage might be the only solution to buy a house.
For consumers with bad credit, the challenge is to make enough big-ticket payments on a regular basis and for a number of years to build up a positive credit history. And what better way to do that than to make home mortgage payments without skipping a month? The comparatively low monthly payment of an interest only mortgage makes that possible.
The lower monthly mortgage payments do help those home owners who are looking to refinance their homes but stay within their budgets for a number of years as well.
How about a home owner or buyer who also would like to save enough money to invest in some other business project? Again, an interest only loan creates the "breathing room" such investors need to take advantage of such lucrative business opportunities.
Call us TODAY at (877) 310-FUND for more details on interest only loans. We'd be glad to help and explain the terms and conditions that apply to this wonderful financing opportunity.
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