Although these loans have become the most popular way for home owners to utilize the equity in their homes, we strongly recommend speaking with a loan professional knowledgeable in the total scope of your mortgage options. You may find it is the right time for you to REFINANCE your current mortgage while putting an equity line in place.

The Wall Street Prime Rate is influenced by the Fed Funds Rate & the Discount Rate, this is the primary tool that the Federal Open Market Committee uses to influence interest rates and the economy. The Prime Rate is also the underlying index for most credit cards, home equity loans and lines of credit, auto loans, and personal loans. Many small business loans are also indexed to the Prime Rate.

With rates at an all time low its a great time to consider using the equity in your home. Please take the time to request a quote from one our approved lenders!

BUYING A HOME - Find a Mortgage Lender

Finding the right mortgage lender is often the toughest part of the home buying process. From comparing mortgage rates and products to finding a mortgage professional who will work with you to explain the loan options that are right for you. This can all be done from the comfort of your home. Find a mortgage lender today - Request a mortgage quote

INTEREST-ONLYLOANS

Over the last few years it has become more apparent to many people that the appreciation and tax benefits of real estate is where financial wealth comes from and not so much as to how much principal balance someone pays down on a mortgage. Real Estate has skyrocketed over the last 25 years and it has become harder for families to realize the dream of owning a home. These loans not only help you qualify for more home they will allow you options that amortizing loans do not.

The national average most people stay in a home is between 5-7 years, why on Earth would you take an amortizing 30 year fixed rate loan, I know, because your parents did and their parents did and so on. Let us try to give you some insight on how these types of loans can significantly change your cash flow position, it is important to understand that we are in no way telling you that you will be saving money, we are explaining with these types of loans you will have options and can decide for yourself how to use the principal portion of your payment.

Here is an example of a $500,000 loan comparing a 30 year fixed rate mortgage to a 5/1 ARM Interest Only, assuming you will move in 5 years, again the caveat is if you do not move you will be subject to the rates five years from now and you may want to refinance. We will take that into consideration also. The rates quoted below are in no way an offer of a mortgage; it is pure speculation of a scenario that could happen. Many of these products are Libor Based loans.

500K 30 year fixed rate jumbo mortgage loan @ 5.875% - payment $2,957.69 per month for 30 years. Your principal balance will be $464,547.20 after 5 years; you paid down $35,453.00 or just 7% of the total loan balance in 5 years.

500K 5/1 ARM Interest Only mortgage @ 4.875% - payment $2,031.25 per month for 5 years. This is $926.44 a month cash flow position or $55,586.40 in 5 years that you have created for yourself.

This is a typical scenario of what we see in the industry today. You benefit not only because your interest rate is lower, you also have the option to decide what you want to do with the principal portion of your payment, college tuition maybe, pay down some credit cards, you decide. With families struggling to make ends meet today or the financial expert who wants to have additional options to use and invest their money in other areas, these loans benefit both.

Each individual scenario is different, and we are by no means telling you this is the best way to go, we just wanted to shed some light on the potential savings and cash flow that these products offer. Please request a quote from one of the mortgage professionals associated with websourcerealestate.com, they can explain in detail the different programs available, and give you an up to date mortgage quote. Good Luck!!!