As many people know, FNMA’s (Fannie Mae) provides great first time home buyer programs.  The FLEX 80/20 and the FLEX 75/25 scenarios have helped new home buyers live the dream of owning their own home with no down payments.  Most first time buyers choose the stability of a 30Yr fixed rate mortgage in respect to the 1st mortgage.  Well, now they also have the option of choosing a principal and interest payment or interest-only payments! 

The interest only feature allows first time home owners to enjoy a fixed rate for 30Yrs and pay the interest only portion during the 1st 10Yrs.  This feature provides a lower monthly payment of course, and allows you to prepay the principal whenever you decide.  Keep in mind, after the initial 10Yrs, the rate remains the same and the loan re-amortizes over a 20Yr period based on the outstanding balance.  The key is that you are in control of the outstanding balance.  And what will you be doing with the monthly savings by paying the interest only.  Have a plan! 

If you still have questions or concerns, please feel free to email me anytime at firsttimebuyer@beechtreemortgage.com, or learn more at http://www.beechtreemortgage.com/florida_1st_time_homebuyer.shtml. 

Trackback URI |