| Interest only allows
borrowers to have flexibilities that
traditional loans don't. Ask
your borrowers this question:
What
portion of their mortgage payment
is tax deductible? Only the interest,
then why pay principal?Your borrower's house will appreciate
or depreciate regardless of how
much principal is paid each month;
therefore, paying zero principal
and diversifying into other assets
or savings will allow borrowers
to have real estate and financial
assets working together to create
a more diversified plan in building
net worth or an estate.
What
if a borrower wants to pay principal
(regardless of the benefits of interest
only)?FundNation's Capital Advantage loans
recast themselves upon the initial
interest rate change; thereby, allowing
a borrower to manage or customize
his/her cashflow. This is beneficial
for borrowers who are commissioned,
bonus, self-employed, or who have
a house to sell. They may take a
higher mortgage balance today and
reduce it in the future to a more
comfortable level and reduce their
monthly payment.
Capital Advantage (Full
Doc) |