Subject: The Interest Only Mortgage Loan

In the past few years a popular trend among home buyers is to opt
for the interest only mortgage loan.

This loan differs from the traditional thirty-year mortgage
by allowing the buyer to pay only the interest for the first years
of the loan.

The result is often significantly lower monthly payments, anywhere
from $200-500 dollars per month.

However, buyers should fully understand the terms of these
attractive loans before investing.

For More Information Visit:
http://universalwebserver.com/maxtay485/

The interest only mortgage option is often used with an 80/20
mortgage loan.

The 80/20 mortgage loan is actually two loans; one for 80% of
the homes value and the other is for the remaining 20%.

The interest only option is usually on the 80% loan, but can
be used on both loans.

Typical interest only mortgage options allow the buyer to pay
only the interest for the first 3-5 years, forgoing payments to
the principle during this time.

The lower monthly payments allows a buyer to afford a higher priced
home that what would be available to them through a traditional
thirty-year mortgage loan.

Savvy investors may opt for the interest only option on a home
below their maximum affordable rate and invest the savings.

After the interest only period has expired the buyer typically
refinances the mortgage loan.

Since no payments were made on the principle during the interest only
period, the full principle needs to be refinanced.

If the value of the home has increased since the date of
purchase, the buyer can use this equity to negotiate lower interest
rates.

However, some risk with the interest only loan is if the value
of your home stays flat or decreases.

This can leave the buyer in an unfavorable position when
refinancing.

The interest only mortgage loan option can also be used on the
thirty-year mortgage loan, or the less popular 70/30 mortgage loan.

However, these loans generally require the buyer to pass more
stringent credit approvals than the 80/20 mortgage loan.

Take a look at:
http://homeincomeportal.com/maxtay485/fp52.htm

The interest only mortgage loan has many advantages that buyers
should seriously consider.

The lower monthly payments allow buyers to afford higher priced
homes or invest the savings.

Buyers should carefully investigate their home of interest
and the surrounding community to avoid an unfavorable position when
it comes time to refinance.

Be Sure To Visit:
http://theinternetsuccessmachine.com/easycash4u/featured.html

Thank you,

Max Taylor
http://taylor-marketing.blogspot.com