10 Year Mortgage
Ask Kate: 10 Year Mortgage With Interest-Only Payments Hi Kate, I am so happy to find your information on this website. I want a TRUE 30/10 Interest Only (IO) but am getting all sorts of run around. Do you know any lender that does this currently?
Simply put, I do not want any changes in my interest rate during initial 10 year period!
Kate Answers: 10 Year Mortgage With Interest-Only Payments
Hi Ellen, Wow! It's been awhile since I was asked about a 10 year mortgage with interest-only payments. You are right to specify that you want a fixed interest rate during the initial 10 year period since variations of these hybrid loans exist.
But don't fall in love with the concept of a 10 year interest-only mortgage without paying attention to the terms affecting your payment once it begins to adjust after the initial period. Here is some help understanding how adjustable rate mortgage payments get calculated at Adjustable Rate Mortgage Advice
my response to a question from Sandy, a homeowner in Highland, California.
Now depending on current market conditions, the 10 year mortgage may not be running as low as the 30 year fixed rate. This could be why you don't feel you are getting a straight story from your lender.
The qualification criteria can be different also. So even though you might easily qualify for a fixed rate, ask if you qualify for a hybrid variation too.
Here's another idea. Create your own combination loan with the best fixed rate mortgage
. Assure yourself of the lowest fixed payment possible. Yet pay your mortgage down as quickly as you like.
Lastly, you asked about finding a lender. Here is how to find and compare mortgage rates and lenders
in six simple steps.
Then take a couple of moments to review Good Faith Estimates
for both programs. Compare 30 fixed rate payments to the 10 year mortgage. To assist the comparison, I've included the links down below leading to helpful facts regarding fixed rates and hybrids.
Remember to bookmark 10 Year Mortgage With Interest-Only Payments
to your favorites so you can easily return in the future.
Ellen, please come back and visit often. Help me spread the word by sharing my website with your friends. After all, my information is free!
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