Are $200,000 Dollar Mortgages at $650 a Month Realistic?
Of course they are, but buyer beware. I have people calling me all the time asking me why the can't have a $200,000 dollar mortgage only paying $650 a month. The truth is they can, but for some people those kind of loans just aren't good. The part no one ever mentions when advertising such a loan program is that the excess payment is added on to your loan total.
For example, if you took out a $200,000 dollar loan it would typically cost you $1300.00 a month. Instead of paying $1300.00 you pay $650. 1300-650= 650, The excess added to your loan is $650 making your new loan amount $200,650.00 next month.
This loan program is called a negative amortization loan. Most mortgage companies call it a pick your payment plan, it has more sales appeal that way. This type of loan has gotten a lot of home buyers in trouble. I am shocked by how many people want this type of loan, yet are unaware of the full nature of the loan. It is in my opinion that these loans were made for investment properties and people with a commission based salary.
The loans are perfect for people who are planning on selling that house in a year or more because it would only add $7800 to the loan amount per year, most home values would increase more then that in 1 year. The commissioned based salary people, like me, have fluctuating income. This month could be little, next month can be a lot, allowing us to make us for the months we only paid $650.
I recommend that all borrowers research their loan programs before meeting with a broker. Also, it is important to find a Mortgage Broker that is trustworthy and would disclose all the important information associated with a particular loan program. It saddens me and stains our profession that some brokers only care about making money.
- Related Videos
- Related Articles
- Ask / Related Q&A
Debt Relief Financially Attractive Through Stimulus Money
By: Marlon Jackson | 11/11/2009Stimulus money granted by the government to big company owners and corporations, though indirectly, can help with debt relief solutions. Because of this government funding, the credit card companies now have more leniency in accommodating payments from their debtors. Because of this, debt settlement is now becoming one of the best options to start dealing with those mounting credit card loans . . .
Equipment Leasing – Things To Bear In Mind
By: Devora Witts | 11/11/2009In this article you will find the basics regarding equipment lease contracts.
Tax Debt Attorney For The Defaulters
By: Kathleen Chester | 11/11/2009Tax debt attorneys are like saviors for the defaulters and creditors. Those who have already hired one know how helpful they can be to deal with such liabilities.
Government Grants for Single Mothers - Grants for Single Mothers Review
By: Craig Realton | 11/11/2009Do you know how to get admittance to government grants for single mothers when you need it most?The economy is presently not putting you in the best of situations because money is running low. You need extra money to use but there are not enough jobs because they are disappearing. Well things are not going to get worse for you if you know your options and use them to your full potential.
Don’t Buy Checks From the Bank
By: Jan Holman | 11/11/2009Don’t buy checks from the bank! I made that mistake on a couple of occasions and was shocked at the prices I paid. Although checks can seem pricy anyway, the difference from buying them online, rather than the bank can be huge.
Business Grants for African American Women - Business Grants for Women In Need Today
By: Craig Realton | 11/11/2009Would you like to get access to business grants for african american women? The economy is presently not putting you in the best of situations because your savings is running low.Jobs are disappearing left and right and it seems as if things are only going to get even more difficult. Well things are not going to get worse for you if you know your options and use them to your full potential.
Government Grants for Individuals - Grants for Individuals Secrets
By: Craig Realton | 11/11/2009Do you want to know how to claim the government grants for individuals that you deserve? I can understand that times are rough and the economy is not putting you in a very good position to make some extra money. You need extra cash to use but there are not enough jobs because they are disappearing. If you want your situation to improve you really need to see what options might be available so that you can start living the happy life again.
Minority Government Grants - Minority Grants For You Today
By: Craig Realton | 11/11/2009Are you in search for minority government grants?The economy is currently not putting you in the best of situations because money is running short. Jobs are disappearing left and right and it seems as if things are only going to get even more difficult. Well things are not going to get worse for you if you know your options and use them to your full potential.
Restore and Protect your Skin With Nia 24
By: Author | 14/04/2007 | HealthIf you are looking for a facial care product that will help in making skin look better than ever then look into Nia 24. This fantastic skin care product that works extremely well for both men as well as women will help restore the overall appearance of skin damaged from the elements.
Obagi Exfoderm: Reduce the Effects of Damage to your Skin
By: Author | 14/04/2007 | HealthIf you are looking for a great way to begin correcting imperfections on your skin, you need to look into Obagi Exfoderm. Add Obagi Exfoderm to your skincare routine today, get the best possible results for your skin.
Obagi Blender: Helps Restore your Skin’s Elasticity
By: Author | 14/04/2007 | HealthIf you are looking for a product that will help restore the elasticity of your skin and give it a better overall appearance then you must try Obagi Blender. When used in combination with a full line of Obagi facial care products you can see...
The Kingdom of Thailand
By: Author | 14/04/2007 | TravelWhy are so many people fascinated from this kingdom? Maybe because it was never colonized by the Europeans and therefore...
Ventrilo and Free Computer to Computer Voice Communication
By: Author | 12/04/2007 | Information TechnologyVentrilo is a Voice over IP program for Windows and Mac OS X. It is very similar to a telephone call, although things such as headsets or computer microphones are used, instead of a physical receiver.
Smoking Shelters - Don't Get your Fingers Burnt
By: Author | 12/04/2007 | BusinessThe arrival of the Smoking Ban in England, Wales and Northern Ireland brings with it yet more headaches for business owners and employers who now have a whole new series of regulations to consider.
Fishing is Fun for Everyone
By: Author | 09/04/2007 | TravelFishing has to be one of the greatest pastimes ever invented. It is also probably one of the oldest. Early man had to eat, and those succulent Salmon would just call to early men as they saw them in the pristine waters of a streambed.
Mortgage Solutions Now - Florida Mortgage, Commercial Loans, Refinance, and Home Loans
By: Author | 03/04/2007 | FinanceI have people calling me all the time asking me why the can't have a $200,000 dollar mortgage only paying $650 a month. The truth is they can, but for some people those kind of loans just aren't good.