|
Welcome
|
California Interest Only MortgageI am a Mortgage Broker specializing in interest only mortgages and am fully licensed in California. A California Interest only mortgage can be an excellent choice for many individuals in California. California interest only mortgage products are designed to offer the lowest payment possible as you are not paying toward the principal in your monthly payment. Because of the lower payment, the California interest only mortgage may mean that you can buy more home than with a fully amortzing mortgage. You may make additional payments toward your principal balance at any time. Email California interest only mortgage questions The California interest only mortgage was originally designed for individuals whose income is cyclical. For example, an individual who is a sales executive with a relatively low base salary but commission payouts quarterly would benefit from an interest only mortgage. You have the lowest possible payment during months when no bonus is paid and you may make contributions to the principal balance when the quarterly bonus is paid. However, I am seeing California individuals in many situations choosing this option as a method of lowering their payment, sometimes significantly. Generally, interest only mortgage products are available for a 30 or 40 year term, with the first 5 or 10 years interest only and the final 20 to 25 years fully amortizing although I am now seeing some progressive lenders offering this option on a California interest only mortgage ARM. Some lenders who offer an interest only mortgage require a prepayment penalty for the first 1-3 years and have caps on the amount your rate can change at any time and over the life of the loan. I always try very hard to avoid prepayment penalties on these and other types of loans and can usually work around the requirement. Again, an interest only mortgage is not the right choice for everyone, but it can be a very effective choice for some individuals. Please give me a call or send an email and I will be happy to discuss this alternative with you. An example of how powerful this tool can be: If you want to make the comparison for your own specific
situation, mortgage calculators to find the
amortizing payment are available on this website. The math to find the simple
interest payment is, Loan Amount x Interest Rate / 12. Of all of the interest only programs available, the Cash Flow Interest Only Mortgage offers the greatest flexibility by far. I have just developed a short PowerPoint presentation in .pdf format on interest only mortgages, some real world examples, and some suggestions on how best to use them available by email I also offer reduced documentation business equipment leasing Read more about California Interest Only Mortgage Closing Costs I have an article "Buying your home in 2008" by email explaining negotiating strategy in today's market. I have an article "Buying your home in 2008" by email explaining negotiating strategy in today's market. As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service. New! View my Wealthbuilder presentation and learn the safe way to manage your debt and fund your retirement. I hope the information on this page was useful to you. Please scroll down to view my Mortgage Market Guide. It is a weekly publication explaining the financial markets from a consumer's perspective that is available on this website or by email subscription. I have nearly 8,000 subscribers today and would be happy to have you as well. Your email address will never be used for any other purpose.
|
|
Prequalify
for your 