Why should I get a 6 Month Interest Only Loan
The 6 Month Interest Only Loan will give you a good six months of fixed and low monthly bills while you settle into your new home. During this period, you will only be paying on the interest portion of your bill. Starting with your seventh month of payments, your bill will change every six months, and according to the index that you and your lender agreed upon, plus a margin. At this point, you will begin paying on the principal as well as the interest. Your monthly bills will get higher at this point, as you are paying on two portions of your loan instead of just one. In addition, your rates will fluctuate with the market, so your bills will be different every six months. It is important to be financially prepared for both aspects of this change to avoid default and potential foreclosure.
There is an advantage that the 6 Month Interest Only Loan has that other loans don’t have. Since you begin paying on the principal after the first six months of your loan, you will begin to build equity quickly. You will find that equity is a valuable financial tool.
What can I use a 6 Month Interest Only Loan for, and what are my options
You can use a 6 Month Interest Only Loan to purchase a primary residence, secondary residence, or investment property. Some alternatives to the 6 Month Interest Only Loan that you might want to consider are the 3 Year Interest Only, 5 Year Interest Only, 7 Year Interest Only, 10 Year Interest Only, 10/30 Year Interest Only, or even the 15/30 Year Interest Only Loans.
How can I get a 6 Month Interest Only Loan
How can my FICO/Credit Score affect my mortgage rate
Credit Scores are always important factors when lenders determine your mortgage rate. You can get a free online credit report quite easily, but first read the following profiles and see where you think you fit on the credit scale.
- You have established a credit history with auto loans, mortgages, and/or credit cards.
- None of your payments were more than thirty days late.
- You have not missed a single payment in the last twelve months, but may have missed a few over the past seven years.
- You are over eighteen years old and have no credit history.
- You have had been reported to a collection agency within the last ten years.
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.