US Mortgage Loans

ramalia7 · Joined: 08 Jul 2005 Posts: 1

Several mortgage products are on offer today. The big question arising in the mind of the mortgage seeker is: which is the best best?

In the various states of the U.S. the interest only mortgages and adjustable rate mortgages (ARMs) have lately been taking the mortgage market by storm. The traditional 30 year fixed rate mortgages have as a result received a setback. The latest offering in the U.S. mortgage industry is the interest only hybrid ARM.

At such a time prudence demands careful scrutiny of such new products which have become a craze. One ought to give a thought to why one should opt for any of these or whether these new mortgage loan types are actually not worth going for at all.

Today’s U.S. market is characterized by home/real estate prices soaring and interest rates lying at all time lows. At such a time the interest only loans seem to be the best tool aimed at offsetting the high prices of homes. Thus, interest only mortgages are being aggressively pushed nowadays by the lenders and brokers.

The interest only mortgage product is finding greatest demand in California where home prices are among the highest. It has also been in great demand especially in the markets of New York, Chicago and Washington. However, it may be noted that interest only mortgages are just not for everyone. They are also not quite viable in the long run.

Currently, the home buyers are turning to interest only mortgages because of the home prices zooming upwards. Here, one needs to pay only the interest on the mortgage for a specified period-often for the first 5, 10 or 15 years when there is no need to pay principal. The lower monthly payment is the main attraction of an interest only mortgage.
Finally, here is a word of advice for mortgage seekers. Though one may have been lured by the low monthly payments of adjustable rate and interest only mortgages, one must never rush. Borrowers need to determine their monthly payments keeping the worst situation in mind before signing for any deal.

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Thanks for the post Ramalia. We do not allow mortgage advertising here.