(From Guest Blogger- Margie Drube, Team Mortgage)

What's the buzz in mortgages right now?

Lower Your Payments!!! How can it be, you ask, when I have a $500,000 mortgage that my payments could be less than $2000? The answer could cause you great problems later if you're not prepared.

Those wonderfully low payments could mean you are financing your interest due and it is being added to your principal balance. That means with every low-low payment you make your mortgage is getting larger. Neg-Am or negative amortization loans and Option ARMs (Adjustable Rate Mortgages) allow that very option of not paying even your full interest payment each month and allowing the shortage to become principal due. How upset will you be to find out your mortgage is larger than when you started it last year or five years ago? Be very careful if the new payment on your mortgage seems too good to be true...It probably is!

The article link below is regarding Interest Only loans; a very good mortgage option if the situation is right. They are better than neg-Am loans, but still could be dangerous if you are uninformed. If you have questions about your mortgage or new mortgage options, feel free to contact me.

Read the article here