You are slated to move to Houston from New York City for only 3 years, for whatever reason. You have found the perfect house, on the perfect block in the perfect neighborhood. The problem is that the house is for sale and not for rent. You think that this home is out of reach because you cannot afford to purchase at the moment. Well, I can assist with making your dream home a reality, albeit a temporary one. We can make this short term purchase a very affordable reality through one of my low rate Interest Only Mortgages.

What, you have never heard of an Interest Only Mortgage? Well, here is the skinny on this very affordable short-term purchase option. Interest only mortgages are mortgages where, for a certain period of time, your monthly payment includes ONLY the interest due on your loan. The interest only period may be months or years, and depends on the terms of the loan. This means that since you are NOT paying on the PRINCIPAL of the loan your loan will not decrease until after the expiration of the pre-determined interest only period. You are simply paying interest, or paying for the right to live in the home temporary in this case. Here is an example; the home is only $100,000.00. The interest rate is 4% which means that your monthly interest only payment is: $199.65 a month. Not bad right? With an Interest only option, you can purchase the home that you want NOW and if you set the terms correctly, you can sell the home and move back to New York with minimal housing outlay.

There are pros and cons to an interest only mortgage. The greatest advantage of an interest only mortgage is the amount of money that you can save each month! Since you are only paying interest there is a huge monthly savings which if invested wisely can provide you with a decent return. Then you can use the return to pay off/down the principal of the home.

The greatest disadvantage of an interest only mortgage is that after the expiration of the interest only period the mortgage may be more than the home owner can afford. However this disadvantage can be eliminated by refinancing before the interest only term expires. This is not a huge mountain to climb.

Short term mortgages with interest-only periods are a GREAT way to save money while enjoying living in a property for a short term. However if you consider using an interest only period in a 30 year mortgage, well you WILL pay more for the home throughout a 30 year term of a conventional (little c) mortgage. Interest only loans are offered as fixed rate and adjustable rate mortgages (ARMs).

If you think that this may be an option for you, call me, Brian @ 832.767.9375. An interest only mortgage can make good financial sense for you and your family.