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Finding a Bad Credit Mortgage
Finding a Bad Credit Mortgage
If you are looking to purchase a home or refinance the one you are currently living in, but believe this may not be a possibility for you because you have bad credit, think again.
Just because you have bad credit...
How To Qualify For A Home Mortgage Loan
Are you considering applying for a mortgage loan to purchase your first home? If so, you should read the following tips below that will make the process easier! If You Have a Good Credit History It Is Easier To Qualify For a Mortgage By far the...
Mortgage Qualification Problems - Not Enough Income
Qualifying for a mortgage can be a stressful affair. A common problem that can occur is not having enough income to qualify for the loan amount. If you have this problem, here are a few possible solutions.
Mortgage Creativity
You find the house...
Subprime Mortgages - Low Down Payments And No Pmi
Sub-prime mortgages offer financing for those with poor credit
to finance the purchase of a home. Today's sub-prime mortgages
offer low down payment options with no private mortgage
insurance (PMI). As a result, more people are finding it...
What is a Reverse Mortgage?
Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment....
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Do You Know the Pros and Cons of Interest Only Mortgage?
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.
In the attempt to lure potential homebuyers, the lenders have come up with various creative mortgage options. One of the more popular offers is the Interest Only Mortgage. As the name implies, with Interest Only Mortgage, the monthly payment will be applied to the interest portion only. In a traditional mortgage option, the monthly payment applies to both interest and principal, even though, in the early years, interest portion is much more than the amount paid to the principal.
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.
About the Author
How to pay off your mortgage in 10 years or less and build lots of equity from your home?
www.1a-refinance-home.com
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