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For home buyers looking for the lowest required monthly payment, an interest only mortgage is a great option. However, many of these people see financial advancements at their work and can afford to make larger payments soon after they acquire their loan. For people with this likelihood, getting a flexible interest only mortgage is the best option. By ‘flexible' interest only mortgage, I mean that the payments come with options.
For most, you are still only required to make the interest only payment. However, when you get your coupon book or payment stubs, you will see that a flexible interest only mortgage provides you with pre-calculated options for other payments. You can then choose to make a pre-set principal payment, an interest only payment, or other type of payment. These types of interest only mortgage loans are great for people who want to not be burdened by a high required payment but also want to start building their equity as soon as possible. Look for one of these ‘flex' options at mortgage companies and websites today while rates are so low.
|Sheri Ann Richerson|