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Interest only mortgage loans from Virginia Mortgage Bankers, LLC, are types of loans that can be used by a homebuyer to afford a new home purchase and to have a lower monthly mortgage payment with the savings going toward a retirement fund at you work or college education for your children.
Interest only mortgage loans are very popular
because the full payments of interest only mortgage loans are
deductible which allows the homebuyer a bigger deduction for
taxes. Additionally, your home will take care of itself with
appreciation rates of 3% to 5% on the low end and 5% to 8% + during
booming housing markets. The money saved each month with an interest
only payment can be invested in a 401k with an employer match or
college savings and you may see appreciation rates 8% to 10% using
those sources.
With an interest only mortgage, it is important to
remember that your house will most likely still be appreciating in
value regardless of how little or how much principal you pay on your
loan each month. Plus, if you choose to invest the money you normally
would pay towards principal each month, this investment may grow to the
point where you can pay off your mortgage in the near future.
Interest Only Mortgage Loans
The dynamics of interest-only mortgage loans are
quite simple and can be effectively computed using our own interest
only mortgage payment calculator.
Payments of interest-only mortgage loans are fixed
for a set period of time during which the borrower pays only the
interest portion of the regular monthly payment. There is no
contribution towards the principal during this period. Once the fixed
interest period is over, the loan reverts back to the original terms.
Now, the monthly payments are adjusted so that the loan amortizes over
the remaining mortgage period. For instance, if the mortgage were for a
period of 30 years, and the interest-only period were 5 years, the
payments at the end of 5 years would be adjusted so that the loan
amortizes in 25 years. During the interest only period, the principal
of the home loan is not paid down.
Click here to obtain your customized interest only
mortgage loan
quote.
Interest Only Loan Payments
Virginia Mortgage Bankers, LLC offers many options
for low interest only loan payments. Virginia Mortgage Bankers, LLC is
a mortgage broker offering nearly 300 loan programs from 65 mortgage
lenders. As a homebuyer you can have 30 year fixed
conventional loan products with 10 year interest only
options. Also, your loan options include many adjustable rate interest
only mortgage loans. You may select varying terms such as 1 year, 3
year, 5 year and 7 year fixed rates.
To help decide which of our interest only mortgage
loans are right for your personal situation please contact us
at Virginia Mortgage Bankers, LLC today! We are highly knowledgeable in
the mortgage markets and understand each index completely. We look
forward to assisting you with your mortgage needs! Start right away by
using our secure online
application for interest only mortgage loans!
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