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If you're seriously interested in knowing about interest only
mortgages, you need to think beyond the basics. This informative
article takes a closer look at things you need to know about
interest only mortgages.
Where do you find low interest, interest only mortgages? Almost
every store on the street offers these types of mortgage
products, but who is the best, and who is the lowest? That's
going to take some work on your part, and maybe just a little
luck.
What kind of information will you need in order to shop for and
secure a great interest only mortgage, with a great low
interest? Well, you're definitely going to need a good credit
rating, proof of income, an appraisal on the property, and a
little bit of luck. There are several products out there in the
interest only mortgage segment of the market, and a few are
actually going to have a pretty low interest rate tied to them.
For example, the 3/1 ARM, or the 5/1 ARM, these mortgages should
have great interest rates, and if you have great credit, you
should be able to find financing to suit your budget, your
desire for a low interest rate, and an interest only mortgage
that you can live with. These types of adjustable rate mortgages
offer the interest only feature for a very limited time, and
this is what the average consumer should discipline him or
herself to use for financing. Extending the interest only option
out past these years, could put the consumer in a dire position,
should the real estate market take a downward turn, they're
going to be left with a huge mortgage, and property that is no
longer worth the original mortgage amount. Now, that's not
likely to happen since the value of the average home in America
has seen a steady 5 to 6% growth for the last 10 years. But, it
could happen. Take a look at the stock market after the
tremendous growth spurt of the late nineties.
Other variables in your quest for a low interest rate will be
determined by the type of lending institution you choose, the
determination of any government program eligibility, and your
geographical location.
Sometimes the most important aspects of a subject are not
immediately obvious. Keep reading to get the complete picture.
Knowledge can give you a real advantage. To make sure you're
fully informed about low interest mortgage rate, keep reading.
Banks are traditionally a little higher with their down payment
requirements, but their interest rates are usually lower than
those of a mortgage company. The exception: online mortgage
lending. Thanks to the fact that this is an area of growth that
everyone and every company are promoting, they're striving to
compete with even the lowest interest rate lenders, in order to
grow their market.
What kinds of government approved mortgage loan programs are
available for the low interest-only mortgage shopper today?
There are actually more programs available today than any other
time in recorded mortgage history; and the ability to qualify
for these programs is at an all-time high. Fannie Mae, or the
Federal National Mortgage Association and Freddie Mac set
guidelines and product availability for homeowners and residents
that quality for low- to moderate income based mortgages. They
also offer low-interest only mortgages in order to accommodate
an ever broadening market. The graduated payment mortgage is an
option for FHA homeowners who currently have low to moderate
incomes but expect them to increase substantially over the next
few years; this can be compared to a balloon note or the
interest only products in use today.
Your location will play a key role in your ability to obtain the
lowest interest rate using the interest-only mortgage option,
also. Prospective homeowners looking to purchase a home in a
high end, resort area will, of course, have more choices
available, as there are more buyers and sellers competing, as
well as lenders for business. The other geographical
contributing factor is the real estate market in your area. If
the market is great, prices are not suppressed, and there is
moderate movement in the buy and sell market, it increases your
chances of obtaining the low interest rate you're seeking.
The interest only mortgage product and a low interest rate are
not mutually exclusive. They can be paired, and under the right
circumstances produce a winning mortgage product for the right
consumers. The route to achieving this goal will take education
on the part of the consumer, hard work, and a little luck in
locating the right mortgage lender.
Knowing enough about interest only mortgages to make solid,
informed choices cuts down on the fear factor. If you apply what
you've just learned about interest only mortgages, you should
have nothing to worry about.
About the author:
About the Author: Hans Hasselfors is the founder of http://www.SubmitYourN
ewArticle.com. You may find varied
interest only mortgage articles in our article directory.
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