Interest only mortgages are becoming more in demand – now that people are learning about them. Recent changes have made them more popular and it could be just the thing that you need. Here are a few tips that will help you determine if you should get an interest only mortgage.
Is Mortgage Financing Possible With Bad Credit?
Being able to buy that new home is still an option – even if you have bad credit. Lenders are definitely getting softer on their requirements for financing mortgages for those whose credit is not perfect. Here are some things that you need to know about getting your next home financed with bad credit.
How Can You Assume A Mortgage?
Finding a house with an assumable mortgage these days could prove to be a real find – but it is not very common. Typically only the FHA and the VA uses assumable mortgages, which basically means that another person can simply take over the house and payments. Here is some information that you need to know if you are thinking about taking over an assumable mortgage.
Have An Adjustable Rate Mortgage – Need To Remortgage In A Hurry?
Most people are probably aware that interest rates have been on an upward trend. For those who have fixed rate mortgages it does not really matter. But if you have an adjustable rate mortgage, then you may already have seen an increase in your payments. Because these can go considerably higher, it may be a good time to consider getting a remortgage. Here are some tips on how to do it.
Fixed-rate Or Arm – What Are The Advantages?
All mortgages tend to fall into one or two basic categories – they are either a fixed rate mortgage or an adjustable rate mortgage. Among these two categories, however, there are many different options that allow you to get a mortgage that suits your personal needs. Here are some of the advantages of these two basic types that you need to know if you are considering buying a house.
Types of High Risk Mortgage
As the cost of houses continues to increase, fewer people are able to afford them. Many creditors have responded to this situation by creating a new class of mortgages that are quite risky.
Regulations Tighten On Interest Only Mortgages
More than 25% of homeowners are paying for their homes with an interest-only mortgage say the Abbey. The reason is obvious their monthly payments are much less. For example, a £125,000 interest only mortgage at an interest rate of 5% and repayable in 25 years time, costs £525 per month – but on a repayment basis the monthly cost rises by £210 to £735 per month.
Understandably, this level of cash saving has proved highly popular with first time buyers struggling to get t…
Mortgages. The Pitfall Of Interest Only Mortgages.
In the first three months of 2002, just 9% of all new mortgages were taken as interest only – but by the last quarter of 2005, the figure had risen to 23%. And amongst first time buyers, the figures rose from 6% to 15%. (Source: Council of Mortgage Lenders.)
The reason is obvious. It’s down to family economics. With an interest only mortgage, the monthly repayments only repay the ongoing interest so your monthly repayment is low. Repayment of the capital borrowed is delaye…
Mortgages. Why Interest Only Can Be A Risky Option
The Council of Mortgage Lenders figures are showing a growing trend in interest only mortgages. From January to March 2002, 9% of new mortgages were interest only. Now take the period from October to December 2005, and the amount of new interest only mortgages has risen to 23%. In the same timeframe, the number of first time buyers choosing interest only mortgages has increased from 6% to 15%.
Theres a good reason for this upturn, and thats because the monthly payments …