Charlotte Real Estate, Foreclosures, Short Sales

Now is the perfect time to purchase a home while interest rates are still historically low.  I understand that mortgage talk can seem taboo to some and even more of a confusing topic than ever before.  While there are lots of fast talking, unscrupulous lenders still waiting to prey on unsuspecting borrowers, there are lots of helpful, ethical loan officers looking to help borrowers make the right decisions with their loan product choice.

Are Interest-Only Loans Really That Evil?

Today I will touch on interest only loans.  Many of my past clients who have purchased Charlotte real estate and homes in the surrounding areas opted for interest-only loans.  Why?  It was easy to calculate payments and "the lower, the better".  Real estate economist predicted "good times" and high percentages of appreciation in many major cities.  Get an interest-only loan, ride the appreciation wave, save extra money each money and if need be, refinance in a few years.  It worked for some, but not for all.  I still like interest-only loans.

I like interest-only loans because I like choice.  I like a few other loans, because I like choice.  Okay, you may say I have an advantage because I work in the real estate and mortgage field and the average borrower is confused by choice.  That may be true, but having the right loan officer who properly educates you on choice is better in my opinion than going for a one-size fits all loan that may not be the right loan for you.  It's all about shopping for the right loan officer, then the right loan.

As a grown-up I would like to have the choice of picking my own loan product.  A 30-year fixed loan may or may not work for me, but I want the choice of making the right financial decisions. That is attractive to me.

The bottom line is, property will lose value REGARDLESS of the loan product.  If your home depreciates due to market conditions, you have less skin in the game with an interst-only and more funds for emergencies that arise in a changing economy.  A lender will be less likely to foreclose on a property if you owe more because the lender will have a greater loss.  They will be more inclined to work with you with for forbearance and other payment arrangement plans.

If you woud like a free consultation and current mortgage information, inquire here and we will be in contact with you within 24 hours.

Sandra Allen is a licensed real estate broker and licensed loan officer.