Apply Online          

     

Welcome to Carteret Mortgage!
 Your source for consumer information  

 

 



Option Arm Manage your Mortgage!



Construction/Perm

Interest Only Mortgage


No Doc


Real Estate Investor


Refinance





















 

Interest Only Loans

Interest only loans can be an excellent choice. Interest only loans are designed to offer the lowest payment possible as you are not paying toward the principal in your payment. Interest only loans may mean that you can buy more home than with a fully amortizing mortgage. Interest only loans are flexible. You may make additional payments toward your principal balance with interest only loans at any time. If you do so, your next payment will be lower as it is calculated on the current balance of your interest only loan. This is different than a fully amortizing loan where any additional contributions to principal do not change the payment and are not accounted for until the end.

Interest only loans were 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 interest only loans. You have the lowest possible interest only payment during months when no bonus is paid and be able to make contributions to the principal balance when the quarterly bonus is paid. However, I am seeing individuals in many situations choosing interest only loans as a method of lowering their payment, sometimes significantly.

Interest only loans are available for a 30 year fixed term, with the first 5 or 10 years interest only (depending on the lender selected) and the final 20 to 25 years fully amortizing although I am now seeing some progressive lenders offering this option on interest only loans ARMs. Reduced documentation interest only loans are also readily available

Again,  interest only loans are not the right choice for everyone, but they can be a very effective choice for some. Please give me a call or send an email with the specifics of your situation and I will be happy to discuss this alternative with you.

An example of how powerful this tool can be:

On a $250,000 mortgage at 6.000% for 30 years-
Principal and Interest payment= $1498.88
Interest Only mortgage payment= $1250.00
Total Monthly savings= $248.88

Of all of the interest only loans available, the Cash Flow interest only loans offer the greatest flexibility by far.

I have developed a short PowerPoint presentation on interest only loans, some real world examples, and some suggestions on how to use them available by email

I offer an analysis of your situation today can make suggestions on how small changes in how your mortgage is structured today can have a life changing effect in the years to come.  Read more

Read more about Interest Only Loans Closing Costs

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!

Interest Only LoansPrequalify for your interest only  loans.

ARMs   Home Equity    Interest Only Mortgage  Investor Loans  Jumbo  Mortgage Links   Reverse Mortgage  No Downpayment Loans   Refinance Center   Site Map  Vacation Home Loans   Commercial Loans Mortgage Home

Certified Mortgage Planning Specialist


NEVER an Origination Fee!

Extensive consumer information on construction,remodeling, first time homebuyer,and no documentation mortgages.                                                                                                                       VA Mortgage