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Re-mortgaging Cost Cutters
By Charles michael Challiner
It is a fact that if you’ve had a mortgage for a few years, you’re likely to be paying more than you need to. Remaining loyal to your mortgage provider doesn’t get you any rewards. Their outstanding Read more...
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50 Year Mortgages, Are They Better Than A Interest Only Loan?
By Dave Maillie
As real estate prices have soared lately in several hotspots like Las Vegas, much of California, Florida, and others, banks and companies are now spreading out payments to 50 years to make them more affordable. Prior to these 50 year mortgages, interest only mortgages were touted as the way to go. The question is which is better.
First let’s digress on what an interest only is. Interest only mortgages or loans aren’t permanently interest only. The buyer only has 2 – 5 years, after which they must resume paying on the principle which has grown during that time. Many buyers may find themselves unable to pay the higher payments that come at the end of this interest only period. In this sense, interest only loans are similar to ARM’s, and have similar default and foreclosure rates (higher than for regular fixed mortgages where the payment stays the same throughout).
A 50 year mortgage, basically spreads your payments out and greatly increases the amount of interest you will payback and reduces your buildup of equity. Alex Diaz Jr., vice president of Statewide Bancorp in Rancho Cucamonga, said the 50-year has particular appeal in California because prices are higher than the rest of the country.
"The 30-year fixed is great, but with gas prices so high, people we're dealing with are concerned about making prices work, and the 50-year is something they're starting to consider," said Diaz. The real estate market has grown by leaps and bounds in California with the average home selling in excess of $300,000.
The 50 year does 3 things, it makes it easies for someone to buy a home in these high price areas, it helps buffer and insulate against a housing bubble or possible localized deflation, and it keeps selling prices high. But, so does the interest only loan, or does it? The problem with the interest only loan is that it does not insulate or protect buyers from increasing principle, negative equity (which can happen if there is a drop in housing prices), and increasing payments. With this in mind, and the fact that there is only a very minor difference in initial payments (payments over the interest only period), clearly the 50 year is a safer bet and a better way to go.
A good tactic to use is to do bimonthly payments which will reduce the interest and term of the loan saving you thousands
California Mortgage Refinancing - California Refinance Rates
Avail the benefits of California mortgage refinancing. Also find how to secure best California home mortgage refinance rates which helps you find the best mortgage solution for your home financing needs to fit every situation.
California Home Mortgage Loan Refinance : California Home Loan Refinance
Lowest rates available on California home loan mortgage refinance and refinance your mortgage while rates are low. Get California Home Interest Loan Refinance quotes online.
California Adjustable Rate Mortgage Loans: ARM Loans CA
In California adjustable rate mortgage loan (ARM) programs, the risk of fluctuating interest rates is shared equally between the borrower and the lender.
California Bad Credit Mortgage Loans
Bad credit OK! Find California mortgage loans to purchase your home, consolidate your debts-even save you from the edges of bankruptcy-and get yourself on the path to financial freedom.
California FHA Loans : California FHA Home Loans
California FHA home loan is the best way to finance your home. Find how to secure best terms on California FHA home loans with a reliable lender.
California FHA Home Mortgage Refinance Loans
California FHA home mortgage refinance loans with very competitive interest rates are great for low and moderate-income families who are trying to make the transition into home ownership or even borrowers with less than perfect credit.
California FHA Mortgage Refinance : California FHA Loan Limits
California FHA mortgage refinance would help the homeowners Struggling to keep up with your California adjustable rate mortgage and as many people as possible purchase their own homes in California by increasing fha loan limits that made it easier than ever before.
California First Time Home Buyer Loans
California first time home buyer loans provides instant rates for first time home buyers and also speaks about the importance of pre-qualification and credit history for first time home loans in CA. Offers best tips for the CA first time home buyer.
California Home Mortgage Loan: California Home Mortgage Loan Rate
Find the best California home mortgage loan with the lowest interest rate for your home financing needs to fit every situation.
California First Mortgage: California 1st Mortgage Loans
California first mortgage loan can be the ideal solution if you want to purchase your real estate property in California.
California Fixed Rate Mortgage Loans: FRM Mortgage Loans CA
Apply for California fixed rate mortgage Loans, your loan interest rates remains fixed for the entire loan tenure (typically for thirty, twenty, fifteen, or ten years) depending on the loan period that you choose in FRM.
California Home Equity Loans : CA Equity Mortgage Loan
Provides information on California home equity mortgage loan to get the funds you need without being forced to sell your home to get it.
California Interest Only Mortgage Loan
Before purchasing interest only mortgage loans in California CA, it is extremely important to familiarize yourself with the loan procedure. Find more in this regard.
Additional
Resources
The Basics Of Home Mortgages
By Ethan Deville
Buying and owning a home is the American dream for many people, and has been for decades. Being able to say that you own your house and your plot of land is a big accomplishment in a person's life. Read more...
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Finding The Best Deal On Your New Mortgage Loan
By Mike Freemen
For most of us, the roof over our heads will be our biggest single purchase, and for most of us a home is the single most valuable asset we will ever earn. How that home purchase is financed can make Read more...
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California Mortgage Refinancing - California Refinance Rates
Avail the benefits of California mortgage refinancing. Also find how to secure best California home mortgage refinance rates which helps you find the best mortgage solution for your home financing needs to fit every situation.California Home Mortgage Loan Refinance : California Home Loan Refinance
Lowest rates available on California home loan mortgage refinance and refinance your mortgage while rates are low. Get California Home Interest Loan Refinance quotes online.California Adjustable Rate Mortgage Loans: ARM Loans CA
In California adjustable rate mortgage loan (ARM) programs, the risk of fluctuating interest rates is shared equally between the borrower and the lender.California Bad Credit Mortgage Loans
Bad credit OK! Find California mortgage loans to purchase your home, consolidate your debts-even save you from the edges of bankruptcy-and get yourself on the path to financial freedom.California FHA Loans : California FHA Home Loans
California FHA home loan is the best way to finance your home. Find how to secure best terms on California FHA home loans with a reliable lender.California FHA Home Mortgage Refinance Loans
California FHA home mortgage refinance loans with very competitive interest rates are great for low and moderate-income families who are trying to make the transition into home ownership or even borrowers with less than perfect credit.California FHA Mortgage Refinance : California FHA Loan Limits
California FHA mortgage refinance would help the homeowners Struggling to keep up with your California adjustable rate mortgage and as many people as possible purchase their own homes in California by increasing fha loan limits that made it easier than ever before.California First Time Home Buyer Loans
California first time home buyer loans provides instant rates for first time home buyers and also speaks about the importance of pre-qualification and credit history for first time home loans in CA. Offers best tips for the CA first time home buyer.California Home Mortgage Loan: California Home Mortgage Loan Rate
Find the best California home mortgage loan with the lowest interest rate for your home financing needs to fit every situation.California First Mortgage: California 1st Mortgage Loans
California first mortgage loan can be the ideal solution if you want to purchase your real estate property in California.California Fixed Rate Mortgage Loans: FRM Mortgage Loans CA
Apply for California fixed rate mortgage Loans, your loan interest rates remains fixed for the entire loan tenure (typically for thirty, twenty, fifteen, or ten years) depending on the loan period that you choose in FRM.California Home Equity Loans : CA Equity Mortgage Loan
Provides information on California home equity mortgage loan to get the funds you need without being forced to sell your home to get it.California Interest Only Mortgage Loan
Before purchasing interest only mortgage loans in California CA, it is extremely important to familiarize yourself with the loan procedure. Find more in this regard.
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