Need some breathing room in your budget immediately following a home purchase? Interest-only loans give you a lower monthly payment up-front, freeing up funds you can use for immediate needs. Once the initial time period for the interest-only payment is over, the payment will increase and then you will begin paying down the original amount you borrowed.
While the interest-only loan is attractive to borrowers who need to improve cash flow immediately after buying a home, it may cause issues in the future when it becomes more difficult to refinance or to sell the home at a profit. Furthermore, once the interest-only period is over, the payments will increase to include the interest and principal in order to pay off the full-amount over the life of the loan.An interest only loan may be right for you if you:
Midland Mortgage Corporation focuses squarely on residential lending practices. We know the top programs to fit the needs of your purchase. Interest-only loans can open doors for people in select circumstances, but they are not for everyone. Let us review your earnings, your property, and your future plans to see whether an interest-only mortgage truly fits your needs. For the right homebuyer, the plan can help you save tremendously while living in a property well above your means.
Unfortunately, problems may arise if future plans change. It’s essential to work with a professional loan consultant before applying for this type of financing. More than any other, its complications aren’t often realized until they’re causing problems. We will fully explain the products available to you and the best ways to utilize them. We can also help you mitigate any problems that come your way.
Midland Mortgage Corporation is dedicated to helping consumers realize their dreams. Contact us today about buying a new home, or a vacation or rental property.