Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about First Time Home Buyer Tips and other Mortgages topics.
Among the many first time home buyer programs that are available, interest only programs are becoming more and more popular as rates remain at historical lows. Interest only mortgages are great for first time home buyers and because of the lower monthly payments which are only being made on the interest, they are an easy way to afford more house than most first time home buyers think that they can.
Choosing interest only as your first time home buyer program makes sense if you are trying to get into a higher value home without a higher monthly payment required. You are always free to make extra payments toward the principal to build up equity, however, you are only required to make the interest payment each month. As many first time home buyers are less prepared to take on high mortgage payment responsibilities, choosing a first time home buyer program that includes an interest only option is often the best solution. If you fit this scenario, look into these types of first time home buyer programs from lenders in your area and on the Internet.