| In conventional 30-year fixed loans, you pay mostly interest the first few years. Only a fraction goes toward actual principal yet you end up paying a higher interest rate to guarantee that fixed rate. That's not very smart in today's times! If you are planning on staying in your present home for less than 10 years, you may consider taking advantage of a new type of mortgage instrument that will dramatically reduce your monthly payments. In this type of mortgage you make 'interest only' payments for 5 or more years with current rates available as low as 3.25%, and the ability to lock in a rate no more than 2% higher at the end of the term. Imagine monthly payments as low as $947 on a $350,000 mortgage. You would pay more than double that on a conventional 30-year fixed loan at today's rates. The money you save can be leveraged into other investments or pocketed. Rates are dependent on your credit rating but FICO scores as low as 550 can get you in the door. Contact information and loan application. |
