Thursday, March 08, 2007

Is an Interest Only Mortgage the Right Choice for You

If you’re looking to purchase a home anytime in the close future, I’m certain you’ve astatine least heard of a mortgage programme that is gaining popularity known as an Interest- Only Mortgage. Unlike more than traditional mortgage programs that necessitate you to refund a part of your principal with each payment, these programs only necessitate interest payments. The payments are, therefore, much less. Bashes having a lower payment do this the right pick for you?

The reply depends on what I name your financial discipline. Bash you have got the ability to take the amount you are not paying back on your mortgage each calendar month and set the money to some better use? Ask yourself these questions.

1. Bash you pay your credit cards in full each calendar month or at least do substantially more than than the minimum monthly payment?
2. Bash you lend from every paycheck to your 401K program or some other tax deferred nest egg plan?
3. Bash you have got a personal financial advisor such as as a CPA, investing advisor, or financial planner?
4. Bash you have any other investings other than existent estate?

If you can reply “yes” to at least two of these questions, you’ve probably got the financial subject to happen a better usage for the monthly principal payment on your mortgage other than paying down the mortgage. Be certain to inquire you mortgage professional person to reexamine all of your options with you.

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