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chris
Guest
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 Posted: Fri Nov 18, 2005 3:06 pm Post subject: right time for a two-step mortgage |
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| When should we consider for a two-step mortgage? |
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 Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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| Posted: Fri Nov 18, 2005 3:34 pm Post subject: |
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Hi Chris,
There are some situations under which it may be advantageous to go for this mortgage. Since there is no point in locking into high rate for the loan period, so this mortgage can be availed when the interest rates are high.
If you have plans to sell your home before the termination of your initial time period, where your interest rates remains fixed, then you can opt for this loan. This may help you to get the benefit of the initial low rate and you need not be bothered about the hike in rates after the initial period.
This mortgage may also prove useful when you can't qualify for the conventional mortgages or you are certain that though you can afford smaller payments now, but you are going to have a salary hike within next five years and then, can pay more.
Hope you will benefit from this information.
God bless you,
For MortgageFit,
Samantha
_________________
Know how to compare lenders with mortgage booklet |
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chris
Guest
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| Posted: Fri Nov 18, 2005 3:48 pm Post subject: |
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| How long this initial low rate continue? |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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| Posted: Fri Nov 18, 2005 4:00 pm Post subject: |
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Hi Chris,
Generally the initial period where the interest rates are below market rate varies from 7 to 10 years.
You may refer two-step mortgage for some more information.
Feel free to post if you have any more doubts.
God bless you.
For MortgageFit,
Samantha
_________________
Know how to compare lenders with mortgage booklet |
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