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Quick Quiz...
What is the MOST EXPENSIVE MORTGAGE PROGRAM?
need a hint? It's the most commonly used mortgage program........
Answer: 30 year fixed rate mortgage
Believe it! A 30 year mortgage has the highest rate of interest of any mortgage program on the market. A 30 year fixed
rate is even more expensive if rates fall AT ALL over the 30 years of that loan. When you consider that the average person
stays in a home 5-7 years, a 30 year fixed rate loan offers security in payments for 23 to 25 years you don't even have the
loan! What a waste!
Most people embrace change. For example...
~ How many of you still own a Commodore 64 home computer?
~ Does your car still have an 8 track player in it?
~ The Pontiac Fiero still the coolest car out there?
Unfortunately, when it comes to mortgages, many people refuse to do anything "different"! Let us show you the difference
an interest only loan can make!
So What IS Interest Only Financing?
Interest Only Financing starts with a loan that is based on a 30 year repayment, but offers a reduced, fixed rate of
interest for a shorter period of time. Typically, you can get the lowest interest rate on a loan that is fixed for only 6
months at a time. But with the lowest rate comes the most risk that rates may increase. More commonly, people select mortgages
which have rates fixed for 3 years, 5 years, or 7 years. The longer the rate is fixed, the higher that fixed rate will be.
However, even a 7 year fixed rate is lower than a 30 year fixed rate. And as we already discussed, most people never use those
extra 23 years.
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So why interest only?
Because interest only gives you the most control over your money. A mortgage is most likely your largest single piece
of debt. Thankfully, the interest you pay is usually tax deductible! By controlling the principal part of your payment you
can utilize your money to grow for you. Just consider the following exampe.
Look at how dramatic the savings between a 30 year fixed and a 5 year fixed interest only. Over $15,000 saved in just
5 years.
You can start saving money right now! Call us to discuss your options at 214-234-8707 or fill out the form below to request
more information.
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