1% Mortgage Loan - part 1
by Ben Afzal
This loan type has become popular recently - what is it, and is it right for you?
From the Archerpacific.com Loan Library
Have you seen the ads everywhere for "1% Mortgage Loans" - offers that show how you can chop you monthly payment in half?
This type of loan has become very popular recently, particularly in places with high and escalating real estate values where the loan can allow people to buy or keep expensive properties that may otherwise be out of their price range.
The 1% loan is a loan that has to be understood first because it can be good or bad, depending on your circumstances and goals.
The 1% mortgage rate is usually an introductory rate (the APR or annual percentage rate is usually much higher).
The 1% interest rate may only be for the first month.
The appeal of this type of loan is that it typically allows you to make a choice each month about how much you want to pay for your mortgage .
Payment Choices For 1% Loans
These choices each month are usually:
· a minimum payment (usually less than the interest-only level)
· an interest-only level
· a 15 year amortization level
· a 30 year amortization
For example, a 1% minimum option loan on a $400,000 loan with a 30 year term can have four different initial payment levels:
the minimum payment of $1,287, an interest-only payment of $1,649, a 30 year payment of $2,134, a 15 year payment of $3,152.
When you get your bill, you can decide that month how much you pay.
Quick Features Of 1% Loan
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1% Mortgage Loan
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