Colli Real Estate

first time buyer (interest only or repayment mortgage)?

i am a first time buyer, looking for a 100% mortgage on the property. i am very new to this whole idea of mortagage. i want to know whether it is wise to go for interest only on a fixed rate for 5 years or go to repayment option. if i go to interest only and choose option of flexible payment option and pay some money every month, will it not reduce the monthly repayments. any advice would be much appreciated.
i am looking for advice, on the UK market, sorry people for not mentioning that in the question. i asked before.

Interest only will benefit you only if:

(1) you expect your circumstances to improve over the term of the loan, or the first 5 years of it. This assumes that right now you prefer the interest only option because it has a lower per month payment.

AND

(2) you will use whatever “savings” you make as your salary rises to invest with the view to paying off your home. These investments must (logically) be at a higher interest rate than the interest on your loan.

Bottom line is you will have to pay the loan somehow, and if you cant afford it now, and you are not prudent with the use of your money, and your income does not rise then you will not end up owing the property.

Alternatively if you are clever enough to see this as an opportunity and make (financial) use of it, then you will score.

I recommend you supplement your income with a part time or work from home job and just save that money to put towards your home, if you choose the interest only mortgage. EM me if you want leads.

The repayment option is the safe option. It is kinda “what you see is what you get” and you don’t need to rely on financial dexterity or higher salaries to see your situation at a glance.

Good luck!

Soul of the City 2009 Preview – Fort Collins, Colorado

Calculated Industries 3415 Qualifier Plus IIIX Real Estate Finance Calculator $47.89 Let the Qualifier Plus IIIx put answers to all your financing problems at your fingertips! Gain instant access to PITI and Interest-Only Payments or figure out the Blended Rate and Payment for Combo Loans. Carry it with you on appointments with clients, a…

Calculated Industries 43430 Desktop Qualifier Plus IIIFX DT Real Estate Finance Calculator $54.95 Advanced residential real estate finance calculator with cash flow and complete buyer qualifying.The Qualifier Plus IIIFX is the ideal tool for real estate investors agents and mortgage lenders. In addition to both common and advanced real estate finance problems it calculates multiple cash flows and internal rate of return (IRR) as well as net present and net future values (NPV/NFV). Provide f…

Calculated Industries 3430-KITMG Qualifier Plus IIIFX Mortgage Success Kit $59.99 The Success Kit – Commercial Investment – is a convenient, carefully assembled package that combines the Qualifier Plus IIIfx mortgage calculator with a Quick-Start Tutorial CD and a comprehensive workbook. In addition to common and advanced real estate finance problems, the workbook covers calculation of multiple cash flows, IRR, NPV and NFV and more…

The Mortgage Encyclopedia (Paperback) $33.89 The bestselling one-stop guide to mortgages—updated for the post–housing crisis market!The Mortgage Encyclopedia demystifies all the various mortgage terms, features, and options by offering clear, precise explanations. Fully updated to address the new realities introduced by the housing crisis of 2007, The Mortgage Encyclopedia provides not just a complete description, but also in-depth discussion of the issues that may affect you, whether you`re a homeowner (or homeowner-to-be), real estate agent, loan provider, or attorney. With this handy, comprehensive guide on hand, you have instant access to:Definitions and explanations of common mortgage-related terms, as well as arcane mortgage terminology, listed alphabetically Expert advice on the most pressing issues, such as whether to use a mortgage brokers, the benefits of paying points versus a larger down payment, and the hazards of cosigning a loan The truth about common mortgage myths and misperceptions—and the pitfalls you need to avoid Helpful tables on affordability, interest cost of fixed-rate versus adjustable rate mortgages, and much more So the next time you ask yourself such questions as "Is this FHA loan right for me?" or "Can I negotiate this fee?" reach for this indispensable guide and get the fast, accurate information you need!

The Mortgage Encyclopedia: The Authoritative Guide to Mortgage Programs, Practices, Prices and Pitfalls $8.52 The bestselling one-stop guide to mortgages–updated for the post-housing crisis market "The Mortgage Encyclopedia" demystifies all the various mortgage terms, features, and options by offering clear, precise explanations. Fully updated to address the new realities introduced by the housing crisis of 2007, "The Mortgage Encyclopedia" provides not just a complete description, but also in-depth discussion of the issues that may affect you, whether you’re a homeowner (or homeowner-to-be), real estate agent, loan provider, or attorney. With this handy, comprehensive guide on hand, you have instant access to: Definitions and explanations of common mortgage-related terms, as well as arcane mortgage terminology, listed alphabetically Expert advice on the most pressing issues, such as whether to use a mortgage brokers, the benefits of paying points versus a larger down payment, and the hazards of cosigning a loan The truth about common mortgage myths and misperceptions–and the pitfalls you need to avoid Helpful tables on affordability, interest cost of fixed-rate versus adjustable rate mortgages, and much more So the next time you ask yourself such questions as "Is this FHA loan right for me?" or "Can I negotiate this fee?" reach for this indispensable guide and get the fast, accurate information you need

How To Sell A House When It’s Worth Less Than The Mortgage: Options For Underwater Homeowners And Investors $15.99 Due to the wave of refinancing in recent years, and the fall in home values, in 2009 about 12 million homeowners and investors will be "underwater"–owing more than their property is worth. This book explains all the options for these homeowners who are trapped with houses they want to get free from, people whose property value has dropped so low that they can’t sell the property, people whose mortgage payment has adjusted and now they can’t afford the property. In addition to offering advice on subject to’s, rentals, leases, loan modifications and more…the book will teach America how to short sale their own home.

Tags: No Comments