CassieNet News :: Thinking of getting a mortgage

Thinking of getting a mortgage :: RE: Two Step Mortgage

Author: Samantha
Subject: RE:
Posted: Fri Dec 02, 2005 2:44 am (GMT -8)
Topic Replies: 2

Hi Lee,

Welcome to MortgageFit Forums.

These are mortgages which have features of both fixed and adjustable rate mortgage. Interest rate charged on the initial period of the loan is fixed but in the second part of the loan the interest rate is adjustable. The names of such kind of loans are bit confusing. Like 2/28, 5/25, 7/23.

Advantage:-
It gives an opportunity to borrowers with poor credit score to buy a home and re-establish their credit score.

Disadvantage:-
If you are not able to improve your credit score you could get stuck with higher interest rate for a much longer period of time then expected.

Types of loans available to borrowers with low credit scores. For more information on this, please visit our section on mortgage with low credit score.

God Bless You.

Thanks,
Samantha
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http://www.mortgagefit.com/discuss/twostep-homeloan.html
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