Now, I can almost hear you asking... Come on Kate! Aren't interest only mortgage loans just hidden adjustable rates? But what if I told you about a mortgage program that could save you $47,784 in 10 years and was fixed (yes, not an adjustable) for the entire term?
I saw a funny greeting card the other day. An apprehensive cat is applying for a mortgage at a bank. Behind the desk sits an authoritative dog in a business suit. The only caption - BEG!
Begging the bank for a mortgage used to be common. In 1955, my dad, a WW II Veteran, was a Midwest-farmer-recently-turned-bank-employee. It is hard to believe, knowing the strength of my dad's credit, that the bank rejected him for the zero downpayment loan of the 50's, the VA mortgage loan also known as a Veteran's Loan.
After selling the family farm, he found himself half-way across the United States embarking on a new career but couldn't buy a home for his family.
So, the bank approved an alternative solution with a large downpayment and monthly payments he couldn't afford.
In 1955, no one dreamed of the myriads of mortgage options we have today, let alone the interest only mortgage loans. I get so excited that we have multiple choices for mortgages. True, it can be confusing but just ask my dad about the alternative.
OK, maybe you think you won't benefit from interest only mortgage loans. But just in case, listen to my story before deciding.
Before retiring, I was fortunate to be in mortgage lending over 20 years. I met people from all walks of life. One particular missionary family stands out in my mind.
Their missionary assignment had been so extended their teenagers had never set foot on American soil. Readjusting to home was spinning them into mortgage culture shock. Although they knew little about mortgages, they had specific financial goals for the next 10 years.
Kate, find us a mortgage with affordable payments to fit our 10 year plan while we put our children through college. After 10 years, we'll sell the house and return to the missionary field. But in the interim, we need an affordable payment.
One thing though! No adjustable rate mortgages. We also want to avoid the expense of refinancing before we sell the home. Please, find us a solution!
When I explained how they could have 30 years of fixed rate stability and low, affordable payments during the initial 10 years, I heard an audible sigh of relief. With the interest only mortgage loan, they could afford to send the children to college.
Refinancing due to run away interest rates was not a worry because the rate was fixed for 30 years.
Not convinced? Still thinking this is a hidden adjustable rate mortgage? If so, listen carefully and I'll show you how fixed rate interest only mortgage loans can save you thousands and thousands of dollars during the initial 10 years.
Traditional 30 Year Fixed Rate Mortgage Loans
10 Year Fixed Rate Interest Only Mortgage Loans
Yep, the $47,784 stays in your pocket the first 10 years. And the interest rate NEVER changes because it's really truly fixed! Feels good doesn't it? Just like the family returning from overseas, fixed rate interest only mortgage loans can make your home affordable too.
Because after all, it's your mortgage and your home. You deserve the best!
Haven't found what you're looking for? Here's the solution! Go ahead and Ask Kate for answers.
Now go to 40 Year Fixed Rate Mortgage because fast payoffs aren't for everyone.
January 2016: The Mortgage Forgiveness Debt Relief Act Update.
September 2015: Fannie Mae and Freddie Mac Improve Loan Modifications.
Keep on the right path at A Homeowner's Survival Guide to the Intimidating Mortgage Process.
Please tell your friends about Wanted! Fixed Rate Interest Only Mortgage Loans. I hope you'll come back and visit often.
Aug 11, 16 10:49 AM
Aug 11, 16 10:18 AM