...thats why loan agents try and sell dreams to the banks by getting interest only loans and have everyone go stated on they paper work! straight bullshit.............
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AC Transit is right... the 30 yr fixed is wack. The problem people run into is that they buy more house than they can actually afford.... If you're buying a home to live there , raise a family... be comfortable etc... I'd suggest an I/O or Neg-Am loan... Only in CA though... I'm not so sure there's many other markets outside of our state that has the housing appreciation that we have. The neg-am loan will give you the comfort of a lower monthly payment, however the interest that isn;t getting paid is added to your principle balance. A higher loan amount means the higher neg-am amount... however you will have a lower payment and be able to breathe easy for now. 30 year fixed mortgages are mostly for the older crowd from my experiences. They like to just know the payment will be the same for the next 30 years.. however like AC said.. the shit is basically an I/O loan with a majority going to the interest and very little to the principle for the first 12-15 years of the loan. Loan Agents don't sell dreams to the banks. The Account Executive knows wassup and wants volume... as long as the borrower fits within the guidelines of the specific program, it's SOLD!
But really tho... dont bite off more than you can chew.
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AC Transit is right... the 30 yr fixed is wack. The problem people run into is that they buy more house than they can actually afford.... If you're buying a home to live there , raise a family... be comfortable etc... I'd suggest an I/O or Neg-Am loan... Only in CA though... I'm not so sure there's many other markets outside of our state that has the housing appreciation that we have. The neg-am loan will give you the comfort of a lower monthly payment, however the interest that isn;t getting paid is added to your principle balance. A higher loan amount means the higher neg-am amount... however you will have a lower payment and be able to breathe easy for now. 30 year fixed mortgages are mostly for the older crowd from my experiences. They like to just know the payment will be the same for the next 30 years.. however like AC said.. the shit is basically an I/O loan with a majority going to the interest and very little to the principle for the first 12-15 years of the loan. Loan Agents don't sell dreams to the banks. The Account Executive knows wassup and wants volume... as long as the borrower fits within the guidelines of the specific program, it's SOLD!
But really tho... dont bite off more than you can chew.
