MY COLLEAGUE thought our discussion about where to locate the causes of the financial crisis had left the issue of inequality behind. I didn't really think it had. I may have misunderstood what he was arguing, both in his initial post and in his reading of Raguram Rajan, but this is the thrust of the...
FHA Mortgage Home Loan Interest Only
Interest Only FHA Loans
If you are looking to reduce your payments as low as possible than an interest only is the right choice. Interest only loans were originally only available to a select few. They were created to allow to only the tax deductible portion of a mortgage to be paid. Over the years many started to use them to finance a much larger loan than what you can get with a fully amortized FHA mortgage.
An interest only option may be available on your loan. Since payments are much smaller it can help you budget your expenses. As with anything there are disadvantages in that you will only build equity if your property increases in value. An interest only loan does not pay down the principal. However the interest only period may vary per program. Some programs may require a fully amortized payment after a set period. Please inquire with one of our loans officers for more details.