If you only make the interest only payment on a loan for the first 10 yrs will the balance on the loan increase or remain the s
I have a 30 yr fixed rate pick a pay mortgage. If you only make the interest only payment for the first 10 yrs will the balance on the loan increase or remain the same?
If you are able to make only the interest only payments on a “pick your payment” mortgage, your loan principal should not increase, regardless of how long you make the interest only payments. However, you mortgage balance will not decrease either; you will only be making the lowest payment amount possible while preventing your mortgage balance from growing. With an interest only payment, you are paying the accrued interest each month, so your balance will not increase, but you will not be making any progress toward paying off the principal of your loan.
If you can only afford the interest-only payment on your current mortgage, you may want to consider a refinance loan with better terms, which could allow you to repay your loan sooner. To learn more about mortgages and refinance loans, I encourage you to visit the Bills.com Mortgage Resources page at http://www.bills.com/mortgage/
If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened refinance lenders contact you to discuss the loan options available to you based on your current financial circumstances.
I wish you the best luck in your financial endeavors, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.Bills.com
The mortgage market: what's new?
It is expected that mortgage rates are subject to change. Homebuyers and those refinancing their mortgages should pay close attention to the latest mortgage rate
Mortgage rates April 10, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 10, 2024 stands at 6.88%. This reflects a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for April 10, 2024 is 6.16%, indicating a 10 basis points increase from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for April 14, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- For a 30-year conventional loan, the interest rate is 7.09%.
- If you opt for a 15-year conventional loan, the interest rate stands at 6.29%.
Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,874. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,399.
Explore your options and secure pre-approval today!
To make your life easier, we highly recommend shopping around for mortgages and getting pre-approved. This will streamline the home-buying or refinancing process and make it a breeze. Ready to get started? Check Out mortgage rates now for the best options available.
