mortgage for 5 years

scenario:
I did recently for a 2 / 28 ARM with 5-year interest-only period and received a commitment letter. I filed bankruptcy 3 years ago, but my spouse, the co-borrower has good credit, about 730. The mortgage company said the loan would adjust every 6 months. But I expect that with this loan for 5 years would pay, as I got out of the car within the next 2 years. Also in the next 5 years, the bankruptcy could be deleted from my credit report. Another company offered me a 30-year fixed loan with 5-year interest-only payment plan. I'm trying to equity and refinance into a 5-year, with a low rate. I would like to know more about what I can for the deployment and equity.

Solution:
A 2 / 28 years ARM is an adjustable rate mortgage to a fixed interest rate for the first 2 years after which the rate adjusts. If this loan program comes with a 5-year interest-only option, then the first 2 years can be great because there is no increase during this period. At the end of 2 years, you can increase by 3-4% and after 2 and 1 / 2 years (due to rate adjustments every 6 months) there may be another probabarticloly increase of 1%. After 5 years there will be considerable increase in your payments, because then you must also pay the most.

The 2 / 28 years adjustable rate loans with a 5-year interest-only option allows you to less on a monthly basis. But this does not help you build equity, because there is no fee for the principal for the first 5 years. Furthermore, the adjustment of the launch at the end of 2 years. Also, it is important to know about the index rate to your loan, and the margin rate. Then calculate your payments with a mortgage calculator. This will help you decide whether you can afford it to the 2 / 28 ARM.

Apart from a 2 / 28 ARM, there are various loan programs, you can opt for. What you need to do is also in the future of such programs with different lenders. Since you have filed bankruptcy 3 years ago, I think it is better if you need for a stable monthly payments including principal and interest. Not that there is a 30-year fixed loan. Even a 5-year fixed for your situation. And I believe a fully amortized loan is good for you, if you for an interest-free only way to for a mortgage, it is similar to leasing at home, with the obligation to pay for the repair.

However, if the structure of equity is not your priority now, then you can opt for a 30-year fixed 5-year interest-only loans. This option has only 1 payment adjustment as compared to that of the 2 / 28 adjustable rate mortgage. The interest rate for 30 years, fixed 5-year interest-only loans may be only 1 / 2% lower than the initial rate of the ARM. Therefore I suggest that you are 30 years for a fixed 5-year interest-only option. And after you have paid your car in the next 2 years, you can use the payment on the principal from the 3rd Year should. Most lenders accept payments on the most important also in the interest only period. And if you do, you can build equity faster.

Samantha Taylor is a co-author and presenter of the Mortgagefit.com forums. It specializes in the mortgage and real estate sector.