80 15 5 mortgage

80 15 5 mortgage
You see mortgage advertising 1% mortgages. Mortgage lenders promises ultra-low monthly payments and easy qualifying, if you are using one of these mortgages to finance your home you need to understand the risks before jumping in. Here is what must You know that approximately 1% of mortgage offers.

There is a mortgage on the internet claiming that negative amortization can be thousands of dollars per month on your mortgage payments. These pages are entitled to mortgage interest rates as low as .5 -1.25%. Sound too good to be true? It is, and what are these pages is not to say that the advertised .5-1.25% rate is not the actual interest rate, just the sentence that your monthly payment based on a certain period.

The difference between this rate and the actual interest rate is the amount the lender adds your principal loan balance each month. That's right, at the end of the month, you owe the lender more than you have at the beginning of the month. Negative amortization means that your mortgage is actually growing with time, not financially smart place. There are certain situations in which these loans make sense, real estate investors use them, for example, but you better know what you are getting before you sign up for one of these mortgages, or they could be the death of your financial well-being.

To learn more about your mortgage financing options, how to minimize risk and to the common mortgage mistakes, register for a free mortgage advice on the links below.

To get your free mortgage guide RefiAdvisor.com visit the link below.

Louie Latour specializes in homeowners, such as advertisements, to identify common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need To Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.