What is the only loan to refinance?
Credit to refinance only a percentage allows homeowners to refinance their mortgage for a house in a new mortgage loan, if they do not pay any principal on the loan – just the interest. For example, if you own a house worth 250 thousand dollars, and now you are paying $ 1,500 a month just on credit refinancing can reduce your monthly mortgage payment from 1500 to 1000 dollars – savings of $ 500 per month. If you took this life event, like a child, divorce, death in the family & # 39; and either just need to cut costs – a loan only the interest can be very profitable.
Its purpose have only the interest, as well as other exotic types of loans. They have their advantages and disadvantages. Undoubtedly, you've heard of lighting defects in the media over the past 2 years. However, as in all things, there are situations where the interest has only the meaning of the loan.
If you live in the vicinity of Washington Metro (DC, Maryland and Northern Virginia), there is a good chance that you have at home there is justice. If you are thinking about refinancing a mortgage once the interest-bearing loan to refinance – the most important factor to keep in mind – this is how long you will be in your home.
Interest only loans for refinancing makes sense for people who do not plan to stay in their homes for a long period of time. For example, if you are thinking about moving to another state or country – you can be useful to pay as little as possible of your company on your mortgage.
In fact, you get all the benefits of home ownership without the high price. In addition, since the house in Washington pretty well evaluated, there is a good chance that your home will still appreciate at the time, when you decide to move on.