LIFamilies.com - Long Island, NY


RSS
Articles Business Directory Blog Real Estate Community Forum Shop My Family Contests

ARM? Interest only? Conventional? Which mortgage would be best for you?

Notebook Save to notebook Email Email article Print Print article More More articles

Interest-only Mortgage: Many home buyers are opting for mortgages with interest-only payments so they can afford to buy a more expensive home. They have lower monthly payments for five, 10, or 15 years, which makes qualifying easier. They could work if you:

* Need more home than you can afford.

* Live where home values are rising.

* Can make a significant down payment.

* Believe you can afford higher payments when you refinance or when the interest-only period expires.

* Will not stay in the home more than the national average of seven years.

ARM (Adjustable Rate Mortgage): About 28 percent of new mortgages today are ARMs. Federal Reserve Chairman Alan Greenspan has approved of them. They could work if you:

* Can refinance to a conventional mortgage when the low-rate ARM expires.

* Think your income will rise, and you will be able to make higher payments later.

* Know you will move and sell before the initial ARM rate expires.

The 110 Percent Mortgage: Allows you to borrow more than the value of a home. It could work if you:

* Can combine debts into the mortgage and lower interest rates and payments.

* Can afford to make the higher mortgage payment required.

* Will stay in the house for many years.

Conventional Mortgage: Has a consistent interest rate and allows you to pay off the home in 20 or 30 years. The home may be your greatest asset at retirement.

Long Island Investment Tips Articles > ARM? Interest only? Conventional? Which mortgage would be best for you?

New Businesses
1 More Rep
Carleton Hall of East Islip
J&A Building Services
LaraMae Health Coaching
Sonic Wellness
Julbaby Photography LLC
Ideal Uniforms
Teresa Geraghty Photography
Camelot Dream Homes
Long Island Wedding Boutique
MB Febus- Rodan & Fields
Camp Harbor
Market America-Shop.com
ACM Basement Waterproofing
Travel Tom

      Follow LIWeddings on Facebook

      Follow LIFamilies on Twitter
Long Island Bridal Shows