Washington Home Loans

An interest-only loan has become a very popular choice ofthe many Washingtonhome loans that are available. What ismaking this type of loan so popular? What other options are available to potential Washington home buyers.

If you have a desire for a lower initial monthly payment,lower payments over shorter period of time, the possibility that if ratesimprove your rates could go down giving you lower payments, the fact you mayqualify for even an even higher loan amount which would allow you to purchase alarger house than originally you thought this may be an option you shouldinvestigate. There are a couple of otherthings you may need to consider. Yourpayments may change over time. There isalso the potential for higher payments if the rates go up. These interest only loans are normallyinterest only for a specific period of time. The normal time is 4 to 11 years then the payment is raised to a normallevel. This type of an option can beplaced on any type of mortgage so you still will need to plan carefully sinceit will resort back to the original mortgage you have.

The best candidate for an interest-only loan would be someonewho could afford to pay for the home with a typical fixed-rate, 30-yearmortgage. The reason they would choosean interest only is it is part of a financial plan they have for the future.

Washington home loans are made available thru several other programs. The Homeownership Opportunity Initiative wascreated to make home financing more available and easy for workingfamilies. They also have the HomeSiteprogram. This unique program is based onneed and provides the home owner opportunity to modest income first time homebuyers.

A bit about down payment assistance and what it means. Most of the Washington home loans have programs toassist with down payment issues. Manypeople believe this is free money, most of the time it is not. Many of these programs are actually a secondmortgage that has low interest rates or deferred payments. Now you may be able to qualify for aGrant. This does not have to be paidback. It is normally paid back if yousell your home within a certain amount of time however. Most of these programs have incomerestrictions. These normally requirebuyers to be below 80% or at 80% of the Area Median Income to qualify.

So along with the normal loans such as a standard 30year mortgage Washingtonalso allows the buy a choice of several other programs to assist in getting thehouse of your dreams. It is suggestedbefore deciding on any of the Washingtonhome loans, you develop a financial plan and speak to a mortgage professionalwith any questions that you may have.