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Finance Matters |
Linknet-Blogs.com features a number of marketing blogs in specific areas of interest such as Marketing, Travel, Health, Business Opportunities, Product Features, Golf, Real Estate. Advertise with Linknet-Blogs.com. Get links and create a powerful online presence. Mortgage Strategies Changing as Market TightensFeb 27, 2006 - Linknet Finance News Mortgage Strategies Changing as Market Tightens Feb 27, 2006 - Linknet Finance News - Just a few months ago the interest-only adjustable rate mortgage (ARM) was all the rage. But that has changed as the U.S. residential real estate market has gone soft.== Mortgage Marketing, How To be A Loan Officer - Make money in real estate as a mortgage loan officer. Free mortgage marketing tips and stragegies == Now as rates start to inch upwards and prices start to edge downwards, the good old 30 year fixed interest rate mortgage is looking pretty good. The interest-only ARM which was so popular in 2005 permitted the buyer to make low monthly payments for the first few years of the loan. Payments did not even try to touch the principal of the loan -- which in many cases was stretched to the limit by rapidly increased home prices and easy credit. The ARM looks good as long as values are appreciating. But when they stagnate or even start to slide downwards home owners making interest-only payments are likely to find in five years time they have no equity. The equity was supposed to come from increasing prices. Even worse, the "Option ARM" allows buyers to opt for one of four payments each month -- a "minimum" payment, an interest-only payment, a payment based upon a 30-year repayment schedule and one based upon a 15-year repayment schedule. That "minimum" payment often doesn't even cover the interest amount and the difference is just tacked onto the principal. After making a minimum payment, the outstanding balance on the loan will actually increase. Get Commercial Real Estate Financing without using banks.
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