1st-time home loan, fixed interest only or traditional? - interest only fixed
We have a 30-year bond in April w / w interest / fixed interest rate of 4% for the first 5 years
It seems interesting to us that the way for a loan of $ 400K, the monthly payment for the 1st 5 years, about $ 1350 + taxes + insurance will be = ~ $ 2000 if we try to obtain a settlement would be the traditional 30-yr fixed for ~ $ 310k ~ $ 2200 payments [including Tax + Ins].
W / IO loans, we can afford more house for the same monthly payment, and good for less than $ 350K in San Diego, does not take much of a house.
So my question is, if we ever w / IO loan and the assumption base stock gains something in the first 5 years when we refinance or sell the house, what happens to the equity? If the bank has to hold because we do not really pay the interest on the capital markets only? Or do we? Can we, that the payments lower, if and when refinancing?
Our main goal is Pamenter 2keep month so deep and so fixed and possessive, although long-term pay more. We do not have 2 B there are 4 mor than 5 years, n, if we do we REFIN
Tuesday, January 5, 2010
Interest Only Fixed 1st-time Home Loan, Fixed Interest Only Or Traditional?
3 comments:
Any accumulated equity in the house they would. Fairness is not really a cash value that will be used if you can sell your house for more than they should about it. The greatest danger to the type of financing you want to use is: What if the market value of your home does not? And if it actually decreasing, due to the declining market?
Yes you can have in an ideal world, pay more for a house and things will wash in the end. But how is ready to play?
If you pay the minimum payment of interest only loan, your equity, which increases the house value. Prinicpal payments on a conventional mortgage are lower for the first years, so that no interest may be the solution.
Of course, a lawyer and check every word in the mortgage market contract carefully ...
Equity is the value of the house, least of all liens and loans. The equity will be.
If you intend for a few years and is willing to take risks, you can see an option ARM loans, the payments will be lower. However, if you want the convenience of a fixed-rate loan, only what you are doing well.
I am a mortgage broker and you can use your loan, and thus the purchase of his home in San Diego. Stores give a certain percentage of commission to a broker who brings a buyer. When you buy my services for your home, I will my commission with a maximum of $ 5,000. You can use this money to pay costs to completion, the purchase of new furniture, take a vacation or do whatever you want.
Regards
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