Wednesday, October 10, 2007

INTEREST ONLY LOAN

Homeowners with interest only loans are prime candidates for refinancing. You can trade in your balloon payment and extended loan periods for better rates and payments. Always make sure you’re getting the best long term financing for your budget.

Choosing the right lender can make a difference of thousands of dollars in your pocket. Online financial companies provide instant loan quotes to help you make better decisions.

Always request a loan quote, make sure you request the same loan terms from each to ensure you are getting the best deal. Begin with the lenders you are familiar with, those your friends recommend, the recommendations you receive online. That way you are sure to get the smartest deal going.

When refinancing an interest-only loan it allows you to reevaluate both your short and long term financial goals. If you want to keep your monthly payments to a minimum, choose an adjustable rate mortgage for 30 years. The adjustable rates, along with the length of the loan period qualify you for low initial payments.

If you want to save on the interest payments, cut your loan period back to 15 years. This will also make you eligible for lower rates. For those seeking protection from unplanned rate hikes, choose a fixed rate mortgage. To reduce the payments even further, pay additional closing fees.

If you want to save money and get rid of the high payments now is the time to refinance your mortgage. Remember even if you have an interest only loan it is just as easy to refinance that mortgage as a fixed rate or an (ARM)
The choice is up to you. When you consider the thousands of dollars you can save by finding a lower rate it is well worth spending the time it takes to do it.

Research always on the internet, check with the bankers, and mortgage brokers, make sure you stay informed.


Happy Surfing,