Zillow Advice RSS: Question-Discussion-Guide,Mortgage Types, http://www.zillow.com/advice/United-States%253B%253B%253B%253B%253B%253B%253B%253B/mortgage-mortgage-types/question-discussion-guide/ Zillow Advice search results | Zillow Real Estate Interest-Only and Deferred-Interest Loans http://www.zillow.com/advice-thread/Interest-Only-and-Deferred-Interest-Loans/2369/ <wikipage><p><pagelink type="wikipage" dest="Interest-Only-Loan">Interest-only</pagelink> and deferred-interest mortgages are gaining increasing popularity, as homeowners like the idea of having the freedom to decide how much to pay against their mortgage each month. Interest-only loans offer you the option to pay only the monthly interest, or you can pay the monthly interest and as much of the principal as you'd like. Deferred-interest mortgages give you even more choices. In addition to the payment options of an interest-only mortgage, a deferred-interest loan also allows you to pay just a portion of the interest payment each month (the unpaid interest would then be added to your principal loan balance).</p><p>&nbsp;</p><p>By opting for an interest-only payment or a deferred-interest payment, your monthly mortgage payment is less -- often times, significantly less -- than it would be if you made a "conventional" interest plus principal payment. You gain the freedom to do with your available cash as you choose.</p><p>&nbsp;</p><p>To help you decide how much home you can afford, it's smart to think in terms of an interest <em>plus</em> principal payment each month. If you can only afford the minimum payment on your mortgage, you may be overextending yourself. Having a <em>choice</em> to pay only the minimum is quite different than only being able to <em>afford</em> the minimum.</p><p>&nbsp;</p><p>Is an interest-only or deferred-payment mortgage right for you? If any of the following situations apply to you, these loans may be just what you've been waiting for:</p><ul><li>If you need cash flow and have a low interest rate, paying interest only is the same as borrowing money at a great rate.</li><li>If you're paid on commission or depend on tips, and your income fluctuates month-to-month, interest-only or deferred-interest payments are great. When commissions are down, make the minimum payment. When you have an excellent month, pay the full payment or more.</li><li>If you invest the money you don't put toward your mortgage in something with a higher rate of return. For example, if you pay 6.5 percent on your mortgage but find an opportunity to make an investment that returns 9 percent, you will make 2.5 percent on your money that you wouldn't make if you had paid your full principal plus interest.</li><li>You have higher interest debt to pay off. Again, if you have credit card debt at 15 percent, it makes dollars and sense to pay that before mortgage interest debt at 6.5 percent.</li><li>If you expect to be in your home for less than 10 years.</li><li>If you live in an area with appreciating home values. Regardless of what you've heard, most of the country is still appreciating in value. In those areas, even if you pay mostly just interest on your home, you're likely gaining equity in your home. In some cases, you can gain equity even with deferred-interest minimum payments.</li></ul><p>Interest-only and deferred-interest loans can be great tools for money management. But, be careful not to stretch your budget too thin so that you have to rely on paying only the minimum payment each month. This can cause headaches down the road and isn't recommended. If you can afford the full payment but choose to have the payment flexibility that these types of loans offer, they just might be a fit for your financial goals.</p><br/><p>As always, make sure your mortgage professional goes over all the numbers and fully explains the payment scenarios. Don't assume anything. Get real numbers and you'll make the best decision.</p><p><pagelink type="external" dest="https://plus.google.com/116010607353595760297/posts?rel=author" nofollow="false">By Diane Tuman</pagelink></p><p><br/>&nbsp;</p></wikipage><br \><br \>1 reply Fri, 12 Oct 2012 21:35:00 GMT http://www.zillow.com/advice-thread/Interest-Only-and-Deferred-Interest-Loans/2369/ 2012-10-12T21:35:00Z What banks working in Minnesota offer special mortgage programs for licensed professionals? http://www.zillow.com/advice-thread/What-banks-working-in-Minnesota-offer-special-mortgage-programs-for-licensed-professionals/593862/ I've been reading a bit about special mortgage loan programs for doctors, lawyers, and other licensed professionals. I am an attorney looking to buy a home soon but am having a hard time finding financial institutions working in MN that advertise if they do these specialty loan programs. Any knowledge of banks that do these types of loans?&nbsp;<br \><br \>6 replies Thu, 02 Jul 2015 13:37:00 GMT http://www.zillow.com/advice-thread/What-banks-working-in-Minnesota-offer-special-mortgage-programs-for-licensed-professionals/593862/ 2015-07-02T13:37:00Z BK 7 Discharge - Need a jumbo loan 80/10/10 http://www.zillow.com/advice-thread/BK-7-Discharge-Need-a-jumbo-loan-80-10-10/592229/ Hello,<br/><br/>Is it possible to get an 80/10/10 loan for a home priced at $590,000 given I have a BK 7 that is now 4-years since discharge.&nbsp; Current FICO ranges 640-660.<br/><br/>Thank you<br \><br \>4 replies Sun, 21 Jun 2015 09:46:00 GMT http://www.zillow.com/advice-thread/BK-7-Discharge-Need-a-jumbo-loan-80-10-10/592229/ 2015-06-21T09:46:00Z Looking for a trustworthy portfolio lender in IL? no surprises http://www.zillow.com/advice-thread/Looking-for-a-trustworthy-portfolio-lender-in-IL-no-surprises/593521/ Had a deed in lieu that closed out Oct 2014 (less than 12 months ago). &nbsp;I am looking to purchase a primary residence for around $220,000. &nbsp;Both my wife and I have scores in high 600's. &nbsp;I've seen some posts in forums from lenders offering up portfolio loans with 15% down and no PMI, but does that just apply to jumbo loans? &nbsp;I've heard of private banks offering "fresh start" loans to people in my position with 20% down and 7% for 7 years. &nbsp;Is there anything better out there?<br \><br \>5 replies Tue, 30 Jun 2015 01:58:00 GMT http://www.zillow.com/advice-thread/Looking-for-a-trustworthy-portfolio-lender-in-IL-no-surprises/593521/ 2015-06-30T01:58:00Z Need private money lender in Chicago, no points http://www.zillow.com/advice-thread/Need-private-money-lender-in-Chicago-no-points/587251/ I am looking to purchase a fix and flip. Purchase price 100k, ARV 170k. Property is in Chicago. I have excellent credit. I am not interested in lenders that charge points. The property is worth approximately 125k as is, although it needs work, would conventional financing be an option as well?<br \><br \>7 replies Sun, 17 May 2015 13:47:00 GMT http://www.zillow.com/advice-thread/Need-private-money-lender-in-Chicago-no-points/587251/ 2015-05-17T13:47:00Z Are USDA guaranteed loans slow to get approved? http://www.zillow.com/advice-thread/Are-USDA-guaranteed-loans-slow-to-get-approved/503747/ I asked a lender whether we should explore a USDA loan and they said that because they have strict requirements about self employment and because you have to ship the loan to the USDA for review and it would take too long.&nbsp;<br/><br/>When I talked to the USDA office about it they said the guaranteed loans are pretty much up to the lender and simply backed by the USDA.&nbsp;<br/><br/>Is it true that USDA guaranteed loans (not direct) need review by the USDA and take a while to get underway?<br/><br/>Thanks!<br \><br \>19 replies Fri, 26 Jul 2013 15:28:00 GMT http://www.zillow.com/advice-thread/Are-USDA-guaranteed-loans-slow-to-get-approved/503747/ 2013-07-26T15:28:00Z Can I get a conventional loan for a 25% commercial, 75% residential building in Texas? http://www.zillow.com/advice-thread/Can-I-get-a-conventional-loan-for-a-25-commercial-75-residential-building-in-Texas/593523/ Trying to find out if its possible to receive a conventional loan on a commercial/residential building in Texas if the majority of the space is residential. Home would be owner occupied. Ive had a few lenders entertain the idea but can't get a clear answer.<br \><br \>2 replies Tue, 30 Jun 2015 03:15:00 GMT http://www.zillow.com/advice-thread/Can-I-get-a-conventional-loan-for-a-25-commercial-75-residential-building-in-Texas/593523/ 2015-06-30T03:15:00Z mobile home loan for 100,000. http://www.zillow.com/advice-thread/mobile-home-loan-for-100-000/586342/ Help. Need new mobile home loan. Husbands credit score 650. Makes 32,000. 2 car payments totaling 800. My credit score 588. Filed chapter 13 7 months ago due to previous divorce. No debt except trustee payment of 80. Have 20 percent to put down.<br \><br \>2 replies Mon, 11 May 2015 01:54:00 GMT http://www.zillow.com/advice-thread/mobile-home-loan-for-100-000/586342/ 2015-05-11T01:54:00Z VA loan http://www.zillow.com/advice-thread/VA-loan/592568/ can you get a VA loan if you want a mobile home or manufacture????&nbsp;&nbsp;&nbsp; what year should it be, also can it be double wide or single wide&nbsp; thanks<br \><br \>3 replies Tue, 23 Jun 2015 18:43:00 GMT http://www.zillow.com/advice-thread/VA-loan/592568/ 2015-06-23T18:43:00Z DC Open Doors Program http://www.zillow.com/advice-thread/DC-Open-Doors-Program/525968/ <strong><u><em>[Self-promotional content removed by Zillow moderator, see our <a href="http://www.zillow.com/howto/GoodNeighborPolicy.htm">Good Neighbor Policy</a>]</em></u></strong><br \><br \>6 replies Sun, 26 Jan 2014 16:37:00 GMT http://www.zillow.com/advice-thread/DC-Open-Doors-Program/525968/ 2014-01-26T16:37:00Z I owe 108k. need 50k+ for repairs. What are my options? http://www.zillow.com/advice-thread/I-owe-108k-need-50k-for-repairs-What-are-my-options/593301/ 4 replies Sun, 28 Jun 2015 13:24:00 GMT http://www.zillow.com/advice-thread/I-owe-108k-need-50k-for-repairs-What-are-my-options/593301/ 2015-06-28T13:24:00Z Who offers Fannie Mae Homestyle Renovation Loans? http://www.zillow.com/advice-thread/Who-offers-Fannie-Mae-Homestyle-Renovation-Loans/593359/ Looking for a&nbsp;<a href="http://www.zillow.com/directory/lenders/">lender</a>&nbsp;who offers this type of&nbsp;<a href="http://www.zillow.com/mortgage/">loan</a>&nbsp;for an investment property that needs repairs.&nbsp; We have excellent credit, a modest downpayment. &nbsp;We are interested in a property built ~1700 and needs updates to the kitchen, baths, and carpet. &nbsp;Hopefully this type of loan will work for our situation. &nbsp;Any suggests and thoughts welcome. Thanks.&nbsp;<br \><br \>3 replies Mon, 29 Jun 2015 00:08:00 GMT http://www.zillow.com/advice-thread/Who-offers-Fannie-Mae-Homestyle-Renovation-Loans/593359/ 2015-06-29T00:08:00Z How does a non-usa resident without a SSN get a mortgage? http://www.zillow.com/advice-thread/How-does-a-non-usa-resident-without-a-SSN-get-a-mortgage/399011/ 9 replies Sun, 15 May 2011 06:30:00 GMT http://www.zillow.com/advice-thread/How-does-a-non-usa-resident-without-a-SSN-get-a-mortgage/399011/ 2011-05-15T06:30:00Z Any loan assistance for non federally recognized tribes? http://www.zillow.com/advice-thread/Any-loan-assistance-for-non-federally-recognized-tribes/478598/ I carry an Indian card for a non federally recognized tribe. I was excited to learn about the Indian home loans (section 184) but was then&nbsp;disappointed&nbsp;to find out my tribe has not yet been granted federal recognition. Are there any other lenders/programs that offer assistance to Native Americans that are not federally recognized?<br/><br/>Thanks,<br/>Steve Mullen<br \><br \>3 replies Thu, 14 Feb 2013 15:12:00 GMT http://www.zillow.com/advice-thread/Any-loan-assistance-for-non-federally-recognized-tribes/478598/ 2013-02-14T15:12:00Z I'm trying to buy a home with a tax id number are lenders still lending to tax id owners? http://www.zillow.com/advice-thread/I%27m-trying-to-buy-a-home-with-a-tax-id-number-are-lenders-still-lending-to-tax-id-owners/230185/ A home was already bought around 2 years ago with a tax id...<br \><br \>7 replies Sat, 02 May 2009 00:11:00 GMT http://www.zillow.com/advice-thread/I%27m-trying-to-buy-a-home-with-a-tax-id-number-are-lenders-still-lending-to-tax-id-owners/230185/ 2009-05-02T00:11:00Z USDA Loan on current home - would like to relocate. Possible to use it a second time? http://www.zillow.com/advice-thread/USDA-Loan-on-current-home-would-like-to-relocate-Possible-to-use-it-a-second-time/592589/ Hello,<br/>I currently have a USDA loan on my home in New York. I have never been late with a payment and I am in good standing. We are looking to locate in the next few years down South - the question is, would I be able to qualify for a second USDA mortgage in the following situations:<br/>1) While waiting for my house now to sell<br/>or<br/>2) Buying a second home w/ a USDA loan and keeping my current home for rental possibilities.<br/><br/>Please advise if you can, thank you very much. I have tried researching on my own but I'm not really getting anywhere.<br \><br \>1 reply Tue, 23 Jun 2015 21:07:00 GMT http://www.zillow.com/advice-thread/USDA-Loan-on-current-home-would-like-to-relocate-Possible-to-use-it-a-second-time/592589/ 2015-06-23T21:07:00Z Construction Loan Broker - St. Louis MO http://www.zillow.com/advice-thread/Construction-Loan-Broker-St-Louis-MO/591316/ I'm in the market for a construction loan and was hoping for some recommendations on a broker in St. Louis to help find the best deals. Does this sort of thing exist? I haven't had much luck with research online.<br \><br \>2 replies Mon, 15 Jun 2015 11:49:00 GMT http://www.zillow.com/advice-thread/Construction-Loan-Broker-St-Louis-MO/591316/ 2015-06-15T11:49:00Z Mortgage loan with 10-15% Loan and no PMI? Is it out there? http://www.zillow.com/advice-thread/Mortgage-loan-with-10-15-Loan-and-no-PMI-Is-it-out-there/582551/ Hi, I am planning to buy my first home in RI for 300K. I am planning to close that by June. I will be able to make only 12-15 % Down payment by that time. I wanted to know if there is anyway i can get a Mortgage with no PMI and good rates. I have 720 + credit score<br/><br/>I can save another 15 k to 20 K from June to December &nbsp;to bridge the gap in downpayment.<br/><br/>Or is taking a Personal loan a good idea<br/>Please Advice<br/>Thank You<br/>&nbsp;<br/>&nbsp;<br/><br/><br/>&nbsp;<br \><br \>7 replies Sun, 12 Apr 2015 05:01:00 GMT http://www.zillow.com/advice-thread/Mortgage-loan-with-10-15-Loan-and-no-PMI-Is-it-out-there/582551/ 2015-04-12T05:01:00Z I'm in Ohio. I'm looking for a 5% down Jumbo Loan for $600K. Do eighty-fifteeen- five loans still http://www.zillow.com/advice-thread/I%27m-in-Ohio-I%27m-looking-for-a-5-down-Jumbo-Loan-for-600K-Do-eighty-fifteeen-five-loans-still/591159/ exist and if so what are the rates for the first and second? What is the max DTI?<br \><br \>4 replies Sun, 14 Jun 2015 01:07:00 GMT http://www.zillow.com/advice-thread/I%27m-in-Ohio-I%27m-looking-for-a-5-down-Jumbo-Loan-for-600K-Do-eighty-fifteeen-five-loans-still/591159/ 2015-06-14T01:07:00Z FIXED INTEREST RATE http://www.zillow.com/advice-thread/FIXED-INTEREST-RATE/592416/ <p>Anyone have any recommendations on places that do fixed interest rates ( lock in the rate)&nbsp;for 9 or 12 months? We are going to be having a home built and are looking to possible lock in the current rate but cant seem to find more then Wells Fargo that offers 12 month builders choice option.&nbsp; We are residing in MI if that helps.</p><p><br/>Thanks</p><br \><br \>2 replies Mon, 22 Jun 2015 19:58:00 GMT http://www.zillow.com/advice-thread/FIXED-INTEREST-RATE/592416/ 2015-06-22T19:58:00Z