Interest Only Mortgage Quote 1% Interest Only Mortgage / Loan?
1% interest only mortgage / loan? - interest only mortgage quote
Can someone tell me what is equivalent to 1% of all these ads for mortgages or refinancing? We just received a quote from a broker to refinance at 1.5%, but the "truth in lending" form displays a variable rate of 7.4%. Our loan officer does not respond understandable - Help!
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3 comments:
It is probably a loan from another MTA or variable interest rate. Let us focus on this as a product of the MTA, since it is likely that the loan product, and would be the best deal.
Below you will find a link to the MTA Index:
http://www.moneycafe.com/library/mta.htm
This can be a very powerful tool for good or for bad. The reason your loan officer is not likely to give us the right answers, because you do not understand the mortgage. (This is demonstrated by TIL for April to 10.5%)
Some calculations on my website that will help some explanations about the program should be. I use a period yra 40 in comparison to a period of 30 years. They should be on the approximate number of 200,000 loans with an amount.
This is the real interest rate and the payments are not delayed: 1301.39
http://www.nnnstore.com/mortgagecalculat ...
Here are your payment at 1.5%: 554.34
http://www.nnnstore.com/mortgagecalculat ...
The real interest rate is 7.4%. The loan program allowss pay less. All you pay less than $ 1301, it included the major balance of the loan.
For example, if you pay 554, 1301-554 = 747. 200.000 + 747 = 200747 = principal balance of the mortgage loans in the 2nd Month (interest charged) from the balance of the new loan.
The function of the minimum payment is typically 5 to 10 years. The real interest rate is variable and changes every month.
Looking at the link above MTA that the percentage per month. The index and the margin loans = interest rate. The index is up, and you should expect an interest rate loans averaged 7.5% - 8% over the year ahead. Any increase or decrease in the rate means a higher minimum payment is deferred. We upticking, you do not expect this, that lower interest rates for the MTA.
Play ... This answer is rather long. I'll go straight to the point.
You really need to examine their goals with the program. If you are self-employed, or flip houses (buying p.pay) and the loan program opens the money you can for your company ... It's great.
I do not think that this is the case for you.
For the typical person who initiated the mortgage on principal residence is a very bad product. If you really understand, mortgage and investment plans have additional deferral, which is worth more.
A very unpleasant for the borrower is common to recast their automatic payment. This means that if your base amount, 115% (or 230,000) of its initial amount you must pay the fully indexed payment (1301/month). For most people this should in the course of the year 4 happened.
If you are not able to save up to pay $ 700 and then in a better return on investment of 10% or more, would I do this loan program. (especially if you make a more traditional approach, at this point.)
This is mine. I am a Loan Officer. Sell your loan officer and the choice of weapons. It has an initial rate of 1.5%. There are also two other options, such as interest and principle and interest only option.
1) 1.5%, this is as the first installment. This is the interest rate. The interest rate is 7.4%, which is what we end the lender interest on the loan is charged if you pay now, or if you sell the house. With this option, you pay to increase the balance of your mortgage is. (Negative amortization). And we really more than you started. There are some articles on CNN that show people with this type of mortgage a failure rate higher because they have mortgages, is more than your house.
Interest Only, Option 2) is 7.4. If you pay the balance on your gift always the same ... (not even fix it) and is in most products varies monthly or annually, depending on the index used for the product.
3) principle and interest payments. Your regular payments to repay the loan in 30 or 40 years. Once again ... thisRate is not fixed from the start for several months or years, depending on the product.
All these things are what you should speak with the officer about your loan. I recommend these products for people who are self-employed, either with money, intelligence, and product details. I do not call me angry, because I knew what ..
In my humble opinion ... this guy is so you the shaft. With 7.4% rate that a good bonus this loan ranges from 3-4% of the loan amount more than my getting up before whatv. DO NOT GO with this product. For more information, see Option ARM to see whether it is appropriate for you before this. The low rate of 1.5% a draw in people, but also for the average homeowner, this product will be a disaster, especially if the real estate market cools.
Floating rate increases with time. Low interest loans are always a trap. Discover what comparing simple interest.
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