|An Interest Only Loan Makes Home Ownership Reachable
YOUR DREAM = OUR DREAM
Found your Dream Home but the monthly payments are beyond your pocket book? Not a problem. You may want to consider an interest-only loan where you only pay on interest for a defined period of time. That way you can finance your home with lower monthly payments.
>> Find Your Dream Home
On a budget? Do more with your money
The Hanna Team is proud to offer this creative solution for homeowners who want to be a little more flexible with their money.
How does it work? Compared to a more traditional mortgage loan where your monthly payment goes to both principal and interest, an Interest-only loan allows you to only pay on the interest for a specified period of time.You can use this option to lower your monthly payments, increase the size of your loan, or combination of both.
Benefits of an Interest-Only loan:
Increasing your purchase power
Found that Dream Home that you just can’t live without?
When a monthly mortgage payment is emptying your pockets, an Interest-Only loan allows you to increase your purchasing power by allowing you to finance a home that is more expensive than a traditional mortgage loan would permit. This option may be helpful for buyers who have truly found the dream home they intend to keep when they would otherwise sell and upgrade after a few years.
Need Extra Cash and Lower Payments?
Another benefit to Interest Only loans is having a lower monthly payment than a traditional loan. Lower monthly payments mean more money each month which in turn allows you the option to save, invest, or pay off debt.
Need More Control over your money?
With an Interest Only loan, you are in control. For example, if you want to pay more than your monthly interest payment, to go against the principal of your loan, you can. This will not only allow you to build equity, it will also lower your interest payment over time. This may be beneficial for homebuyers with variable income. In certain months, when your money is tight, you make only the interest payment. However, in other months, when you have some additional income, you can pay down principal in addition to interest. This will increase your equity and decrease your interest.
Need Flexibility on Interest Rates?
The Hanna Team Interest-Only loans can be adjustable or fixed rate mortgages. It's your choice. Your monthly payments are calculated, just like other mortgage loans, by using the applicable interest rate.
However, the difference is that the adjustable rate interest on an Interest Only loan is traditionally lower than the fixed rate on a on a more traditional home loan program.
Is an Interest-Only Loan right for you?
An Interest-Only Loan does have all of the benefits mentioned above, however an Interest-Only Loan is not for everyone. If you have questions about whether or not an Interest-Only loan is right for you, talk to a The Hanna Team Professional today.