Interest only Mortgages: Are you Eligible?
There are two things to be aware of when going for an interest only mortgage: the interest and the principal.
Each loan has a percentage added to the amount you borrow, and the interest loan is no different. In terms of this loan type, you pay off the interest alone and not the capital. This results into smaller monthly payments. After the interest period, your monthly amortization includes the principal and the interest.
As you pay off the interest, the principal remains as it is. However, if you have enough cash reserves, you can pay part of the principal to reduce it. Remember, the lender expects you to trade your home for profit or pay off a chunk of the principal once the interest period ends.
Is this Program Suitable for you?
Here are some situations that you might face as a borrower:
• You expect to earn a lot in the near future.
• Your income is in form of bonuses or irregular commission.
• You have invested cash and you are sure your investment will yield a lot of money.
• You are buying in an area that has an above average price appreciation.
If you fall in any of the situations above, then this program is for you.
However, you must lay out a payment plan before you taking out this loan so that you can decrease the risk of defaulting. The plan allows you to pay off the capital in lump sum and can include cash savings, endowments, pensions or an eventual inheritance.
How Can We Help You?
At Centex Capital, we have the experience and knowledge to help you enjoy these low payments. We have loan professionals who understand what to do to aid you get the loan quickly and build up your payment plan.
Contact us for more information. Email us or call now (800)842-2910.