Tag Archive for: interest only loans

Seller Carried 2nd Mortgages; Do’s and Don’ts

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A seasoned appraiser told me that he is seeing a lot more listings lately that offer to carry 2nd mortgages for buyers, apparently as added enticements to move the listings.Read More

What Are Interest-Only Mortgages and How Do They Work?

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An interest-only (I/O) mortgage is a type of mortgage in which the borrower is only required to make interest payments for a set initial period. Interest-only mortgages can be helpful for several reasons, but it is important to understand the pros and cons when determining if this loan type is a good fit for you.Read More

When Interest-Only Loans Are A Good Idea

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INTEREST-ONLY “STIGMA” An “interest-only mortgage,” as the name implies, is a loan where the payments include only accrued interest – and no principal paydowns or amortization. Such loans had an […]Read More

Alternative Financing Options: Interest Only; Rental Income Only; Asset Depletion; Bank Statements

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“ALT A” LOANS In the 1990s, a lender called Headlands Mortgage pioneered what were then called “Alt A” mortgages. The loans allowed borrowers to qualify for competitive mortgages without having […]Read More

Fed Speaks – Rates Up; Paying Off Student Loans With Mortgage; Interest-Only Loans

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Fed Chair Powell spoke yesterday and sent the bond market into a tizzy, as investors sold off their bonds and pushed rates sharply higher. What crazy thing did Powell have […]Read More

Interest Only Loans Vs. Fully Amortized Loans

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Borrowers often ask for “Interest Only” (IO) loans because they want lower mortgage payments, and we discourage them for a variety of reasons. I am discussing the pros and cons […]Read More