August 31st, 2015 1:43 PM by Dale DiGennaro
Dale DiGennaroCustom Lending Group(707) 252-2700dale@clgroup.netwww.customlending.net
You've probably read about them, seen them advertised on TV, or heard about them on the radio. Interest only loans are still getting a lot of press & promotion, and lenders/banks have been marketing them pretty heavily. But what exactly is an interest only loan? How do they work? And perhaps most importantly, how do you decide if an interest only loan is the right loan for you?
We can help you with that! An interest only loan is a type of loan in which all payments go toward paying off the interest of the loan instead of the principal (the amount borrowed) for a specified amount of time. Though payments made during this interest only period are typically much lower than those of a traditional mortgage, they can also be affected by the ups and downs of the market.
In spite of their fluctuating interest rates, interest only loans appeal to many of today's home buyers and owners. They give borrowers greater purchasing power, allowing them to make smaller payments on bigger properties. And some types of interest only loans even allow borrowers to choose from one of several payment options each month, giving additional flexibility if finances get a little tight.
The benefits of interest only loans are also balanced by some of their risks. If you're considering buying a home or refinancing your mortgage, it's important to contact a mortgage professional to help identify your financial needs, and find a loan product that will best meet them. Please give me a call at (707) 252-2700 and take a look at my website www.customlending.net to view my extensive selection of loan programs and services. I work with many different lenders throught the nation and will find the one that best suits your personal situation.! Let me put my experience to work for you today! I hope to speak with you soon.
Sincerely,
Dale DiGennaro
Mortgage Time
Mortgage Market News for the week ending August 28, 2015
Compliments of
Dale DiGennaroOwner | NMLS: 298353 | 966783
Custom Lending Group, Inc.Co. NMLS: 845079 | 944064
Office: 707.252.2700 - Ext. 109 • Cell: 707.738.0878Fax: 707.252.1319
dale@clgroup.net www.customlending.net/Home
1700 Soscol Avenue
Suite 22
Napa, CA 94559
Volatile Week
Over the past week, mortgage rates were pushed and pulled by unusually large movements in global stock markets. The economic data had little impact. After a volatile week, mortgage rates ended just a little higher.
Concerns about slowing global economic growth, particularly in China, caused the U.S. stock market to decline sharply early in the week. However, with stocks at much lower prices, buyers stepped in later in the week, erasing the week's earlier losses. While the magnitude of the moves were relatively smaller, a similar pattern was seen in mortgage rates. They dropped early in the week and then gave back their improvement later in the week. This relationship between stocks and mortgage rates is common, as investors shift assets between stocks and bonds.
The recent revisions to U.S. Gross Domestic Product, the broadest measure of economic activity, revealed an increase in growth during the second quarter to 3.7% from an original estimate of 2.3%. This follows a much smaller gain of 0.6% during the first quarter. One factor behind the improved performance during the second quarter was a significant increase in inventories. This is unlikely to continue next quarter, however, and early forecasts for the third quarter are for growth below 2.0%.
Next week, the important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before that, ISM Manufacturing will be released on Tuesday. The ADP Employment Change will come out on Wednesday. ISM Services will be release on Thursday . In addition, there will be a European Central Bank(ECB) meeting on Thursday at which some investors expect ECB officials to discuss a possible need for additional stimulus.