Getting A Mortgage Is One Of The Most Major And Important Financial Decisions You're Likely To Ever Make. Welcome To Vanish My Mortgage. This Site Is A Free Information Resource That Will Answer All Your Questions About Mortgages. As You Explore This Site, You'll Discover...

Hot Topic: 3 Easy Tricks To Get Approved Fast For Your Loan

Insider Secret: How To Never Overpay Your Monthly Interest

7 Extra Costs To Be Aware Of Before Buying A Home

Home Mortgages 101: 5 Things Your Banker Will Never Tell You

Remember... If You Are Looking For Quality Information Related To Mortgages, Add This Site To Your Favorites Right Now, As We Update It Daily With The Latest News And Information Related To Mortgages And Similar Topics. Enjoy The Site.

Everything You Must Know About Mortgages, Home Mortgage Refinance, Mortgage Refinancing, Refinance Mortgage, And Mortgage Loans.

Recommended Mortgages Resources

A Mortgage-Free Future Is Closer Than You Imagine.

Pay Off A 30-Year Mortgage In As Little As 8 To 10 Years Or Less

Mortgage Loan Tips

Why Some People Almost Always Get The Lowest Interest Rate On Their Mortgage - For The Least Points!

Mortgage Secrets Exposed

How Anyone, With Any Credit Can Get Any Mortgage Fast & Easy!

Press

For A Message

Latest Related Articles About Mortgages

Deciding Which Mortgage Loan Is Right For You

If you are looking to finance the purchase of a new home, then you will likely be looking at more than one mortgage loan option, including those...

Home Mortgage Loans

Getting rid of the mortgage early is something that many home owners in the UK aspire to achieve. Being free of the principal financial debt in most...

Is Getting a 30 Year Home Loan a Good Choice?

Getting a 30 year home loan used to be a popular choice among most home owners. The reason being the total home loan payment is being spread out...

Looking For More Articles Related To Mortgages?

Mortgages
Poll

Home Mortgage Loans For People With Bad Credit - Pro's And Con's Of Interest-Only Loans

Author: Carrie Reeder

Buying a home with poor credit is just as easy as buying a home with perfect credit. Years ago, many people with a low credit rating believed homeownership was unattainable. Fortunately, there are various loan programs designed to help people with low income, bad credit, and no down payment purchase a house. Included among these programs are interest-only loans.

What are Interest-Only Mortgage Loans?

Interest-only mortgage loans became popular in the early 2000's. The concept of interest-only loans is very unique. Ordinarily, monthly mortgage payments consist of a portion of the payment being applied to the principal balance, and a portion applied to the interest. In order to payoff a mortgage in 15 or 30 years, a specific amount of money must be paid each month.

On the other hand, if you obtain an interest-only mortgage loan, you pay only the interest for the first few years. Interest-only periods vary. Homeowners may opt for a three, five, seven, or ten year interest-only loan. After the interest-only period ends, the homeowner must begin making payments toward the principal and interest.

Why is an Interest-Only Loan Beneficial?

If you live in a booming housing market, an interest-only loan may be your only option for buying a home. Many are attracted to these loans because the initial mortgage payments are low. For example, a $200,000 conventional loan has a monthly payment of about $1200. With an interest-only loan, the mortgage would be about $800 a month. Hence, if you are buying in an overpriced market, affordable living is within reach.

Pitfall of an Interest-Only Loan

Once the interest-only period ends, you still owe the original loan amount. When homeowners begin making payments towards the interest and principal balance, mortgage payments may increase 40%. Most homeowners are unable to afford a mortgage increase. If you plan on living in your home for several years, an interest-only loan may not be a good option. On the other hand, if you earn a sizeable income and can afford a higher mortgage, you may benefit from this type of loan.

Another option involves selling your home before the interest-only period ends. If home values in your area have increased significantly, you may capitalize from the equity. However, if the housing market takes a nosedive and home values decline, you may be unable to sell your home.

About the author:

Visit ABC Loan Guide for advice about mo rtgage loans for people with bad credit.

Article Keywords:
Mortgages

A Quick Note From The Publisher...

If you like the article above, you may be interested in the following article which is also related to Mortgages...

Fannie Mae And Freddie Mac Mortgage Loans - Conforming Loans Provide Low Interest Rates

Conforming loans provide low interest rates since they are almost guaranteed to be purchased by Fannie Mae or Freddie Mac, which allows more funds to be available for borrowers. However, these corporations have terms, such as maximum loan, that limit how much you can borrow. If you don't meet their terms, you will need to apply for a non-conventional loan with slightly higher interest rates. Loan Purchasers Fannie Mae and Freddie Mac are stockholder owned companies that purchase mortgages, package them into securities, and then resells them to investors. This allows banks and other financing companies to lend to more customers since their capital is not tied up in long-term loans. Fannie Mae and Freddie Mac have strict requirements for purchasing loans. Basically, they want to reduce their risk level so they put a cap on loan amounts, credit score, income level, and down payment. Conforming Loan Amounts Each year Fannie Mae and Freddie Mac create...

Mortgages,

Mortgage Loans
News

Media Alert: Ray of Hope in Subprime Crisis; Leading Mortgage Loan Servicing Company Sees Delinquencies Flatten or ... (Centre Daily Times)

One of the nation's leading subprime mortgage servicers reports that delinquencies on the subprime mortgages it handles flattened or declined this summer, in large measure due to its technology-enhanced loan modification program.

Fitch Takes Action on 1 Citigroup Mortgage Loan Trust Resecuritization Transaction (Business Wire via Yahoo! Finance)

NEW YORK----Fitch Ratings has taken the following actions on Citigroup Mortgage Loan Trust certificates. The classes represent a beneficial ownership interest in separate trust funds, which include bonds that have been affirmed and remain on or have been removed from Rating Watch Negative.

Rangel Says He Didn't Know of Loan Terms (Washington Post)

Rep. Charles B. Rangel (D-N.Y.) did not know that the Caribbean resort villa he purchased 20 years ago was financed with a no-interest mortgage from the developer and has generated $75,000 in income that he should have reported on tax and financial disclosure forms, his lawyer said yesterday.

Florida, California driving mortgage delinquency rate (Orlando Business Journal)

Mortgage loan delinquency rates in Florida and California are driving the nation's residential delinquency rate, which jumped .06 percent in the second quarter to 6.41 percent of all outstanding loans, according to the Mortgage Bankers Association.

Realty Q&A: How to get a no-hassle FHA purchase-rehab mortgage (Market Watch)

I'm trying to obtain a loan for a home purchase -- I am not a flipper -- and I have been unable to find anyone who knows about the FHA Streamline K loan. How can I go about finding a lender familiar with this type of mortgage?

Home loan troubles break records again (AP via Yahoo! News)

The source of trouble in the mortgage market has shifted from subprime loans made to borrowers with bad credit to homeowners who had solid credit but took out exotic loans with ballooning monthly payments.

Everything You Must Know About Mortgages, Home Mortgage Refinance, Mortgage Refinancing, Refinance Mortgage, And Mortgage Loans.

Mortgages Poll

Article Keywords: Mortgages

Mortgage Loans News

Mortgages
Poll

Article Keywords:
Mortgages

Mortgage Loans
News