Comments on: Four Great Reasons to Choose an Interest-Only Loan http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/ Home loans made easy Fri, 21 Nov 2008 20:58:37 +0000 http://wordpress.org/?v=2.3 By: LendingClarity.com » Blog Archive » Safe 100% Financing with “My Community” http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-3645 LendingClarity.com » Blog Archive » Safe 100% Financing with “My Community” Sat, 14 Apr 2007 18:08:55 +0000 http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-3645 [...] Others have blogged this topic and the Fannie Mae link will get you to the general stuff, so I’m going to restrict my comments to points I don’t see made elsewhere.  Some of the issues—income limits and the interest-only option—are not covered on the Fannie Mae site, so I’m going to confirm them on Monday.  And keep in mind that what follows applies to the use of MyCommunity Mortgage for 100% financing. [...] […] Others have blogged this topic and the Fannie Mae link will get you to the general stuff, so I’m going to restrict my comments to points I don’t see made elsewhere.  Some of the issues—income limits and the interest-only option—are not covered on the Fannie Mae site, so I’m going to confirm them on Monday.  And keep in mind that what follows applies to the use of MyCommunity Mortgage for 100% financing. […]

]]> By: Marc http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-51 Marc Tue, 09 Jan 2007 08:22:43 +0000 http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-51 Jim, keep an open mind about interest-only loans. One of the things that caught many people off guard was that some of these have a very short fixed rate period. At the end of that 3 or 5 year period, two things happen. The rate begins to adjust, and principal is amortized in over the remainder of the 30 years. I mostly use 30 year fixed rate loans with the interest-only option. The rate never fluctuates, and the borrower can make interest-only payments for up to 15 years before the loan begins to amortize. I don't know a soul who has had a mortgage that long. It should be plenty of time. Marc Jim, keep an open mind about interest-only loans. One of the things that caught many people off guard was that some of these have a very short fixed rate period. At the end of that 3 or 5 year period, two things happen. The rate begins to adjust, and principal is amortized in over the remainder of the 30 years.

I mostly use 30 year fixed rate loans with the interest-only option. The rate never fluctuates, and the borrower can make interest-only payments for up to 15 years before the loan begins to amortize. I don’t know a soul who has had a mortgage that long. It should be plenty of time.

Marc

]]> By: Jim Lee http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-38 Jim Lee Fri, 29 Dec 2006 13:55:42 +0000 http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-38 Sounds like 4 good reasons for buyers to consider an interest only loan. My wife and I are searching for a new house now; we'll take a closer look at the interest only products available. Sounds like 4 good reasons for buyers to consider an interest only loan.

My wife and I are searching for a new house now; we’ll take a closer look at the interest only products available.

]]> By: LendingClarity.com » Blog Archive » Creating Affordable Payments (Part IV): Interest Only Loans http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-36 LendingClarity.com » Blog Archive » Creating Affordable Payments (Part IV): Interest Only Loans Fri, 29 Dec 2006 07:11:09 +0000 http://www.lendingclarity.com/2006/11/10/four-reason-to-choose-an-interest-only-loan/#comment-36 [...] First, let me start with an observation based on personal experience.  Most consumers believe that interest-only loans are bad.  I rarely encounter a client whose mind isn’t already closed to the notion when the topic first arises.  The press has done an effective job of scaring the consumer by associating interest-only loans with the real estate bubble and predatory lending.  But interest-only loans—particularly the 30 year fixed variety—are wonderful financial planning tools, and they are safe.   Read Four Great Reasons to Choose an Interest-Only Loan.   [...] […] First, let me start with an observation based on personal experience.  Most consumers believe that interest-only loans are bad.  I rarely encounter a client whose mind isn’t already closed to the notion when the topic first arises.  The press has done an effective job of scaring the consumer by associating interest-only loans with the real estate bubble and predatory lending.  But interest-only loans—particularly the 30 year fixed variety—are wonderful financial planning tools, and they are safe.   Read Four Great Reasons to Choose an Interest-Only Loan.   […]

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