How are payments adjusted on an "interest only" mortgage?
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the payment amount will adjust monthly, as you make your principal payments. You will not realize a large difference on a payment month to month, because the balance on a mortgage is pretty big. It may be a few cents here & there depending on how much extra you pay, maybe a dollar or so.
Just make sure that you pay close attention to this type of loan. As you may be aware, these loans are under great scrutiny b/c it is so easy for a borrower to get in over thier heads with these. Be very carefull.
How are payments adjusted on an "interest only" mortgage?If the program is a 2/28, the adjustment could jump the interest rate up 2% from the original Interest Rate. Then every 6 months the interest rate will jump higher. It depends on the market as well as the current Loan. If you are planning on eventually paying off the home, you might want a 15yr fix or a bi-weekly plan to pay the home off sooner. Right now is the best time to get into a secured Loan.
Email me your situation and I can give you a more detailed explination.
Nathan grant
Ngrant@Pacifina.com
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