http://evanswanson.com Evan Swanson (NMLS 120856), a mortgage professional and CERTIFIED FINANCIAL PLANNER™ with Mortgage Trust, Inc. (NMLS 3250) in Portland, shares his knowledge, thoughts & advice on mortgage & financially related topics Wed, 08 Feb 2012 16:23:46 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 http://evanswanson.com/general-mortgage-info/curious-about-the-30-year-fixed-with-interest-only-payment-program/ http://evanswanson.com/general-mortgage-info/curious-about-the-30-year-fixed-with-interest-only-payment-program/#comments Tue, 01 Apr 2008 21:25:00 +0000 Evan http://webhost.mortgagetrustinc.com/evanswanson/?p=69 This loan program carries a 30 year fixed interest rate with a 10-year interest-only payment period. With this program your interest rate remains fixed for the entire 30 year term of the loan. What makes it different from a standard 30 year fixed rate mortgage program is that for the initial 10 years the lender gives you the flexibility to only make an interest-only payment. If you made this payment during this time frame you would NOT make any progress towards paying back principal so the only way you gain equity is through property appreciation (which is never guaranteed). After ten years the remaining balance would then be amortized over the last 20 years of the loan. At that time unless you’ve made significant voluntary principal payments during the first 10 years your payments would increase.

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