Sat, Jul 04, 2009
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Ajustable Rate Mortgage |
jerre19
16 Posts
Member Since: 10/29/2003
Sicklerville, NJ
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Posted: 20:28 on 03-05-2005
Iam buying new construction, price is $309,000 with all upgrades the price is $350,000 10% down total price to to be financed is $315,000. I want to use this variable rate loan that starts in year one at $1,040.00 and will increase to $1,450.00 monthly by the sixth year,and then cost $1,436.00 monthly for the life of the loan. There is also a home equity loan that covers the monthly installment payment difference. My plan is to pay off the home equity loan the first year and re finance the variable rate loan in five years. I have the option to pay interest only, pricipal only or principal and interest. Iam looking for some good advise from some of you senior investors, or from anyone who may have used this type of financing. I know there are ways to protect myself, i guess this is what iam looking for. If i took a 30 year fixed mortgage,my monthly payments would be close to $2,000.00 monthly and this will be my primary home not one of my investment properties.
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ysoft
19 Posts
Member Since: 11/14/2003
Longwood, FL
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Posted: 13:45 on 03-09-2005
Is this a type of interest only loans? I'm interested in applying one of these loans. It would reduce the monthly payment a lot and also allow the flexbility of paying extra principals. It would help prequalitying the loan I think. The drawback as I know is that it may have prepayment penalty. Is that right? Any suggestions?
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jerre19
16 Posts
Member Since: 10/29/2003
Sicklerville, NJ
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Posted: 21:12 on 03-09-2005
Yes, there is a $500.00 prepayment penalty if you prepay within the first 3 years of the loan only.
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