Interest Only Mortgage Brokers in MN

From LoveToKnow Mortgage

If you're looking for interest only mortgage brokers in MN, you'll want to start with some of the websites online that offer a full listing of different options available. Online databases also offer the ability to compare the rates of different lenders or read reviews from others who may have used the mortgage broker's service.

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Minnesota's Real Estate Market

Home Ownership and Foreclosure Rates

According to an article published in the Minneapolis Star Tribune in February of 2007, home ownership in Minnesota is at an all-time high of around 78 percent, which also makes it the state with the nation's highest rate for home ownership. However, the foreclosure rate has also been rising and reached as high as 46 percent in the past year. Many people blame adjustable rate mortgages (ARMs) for the fast rise in foreclosures. New creative financing options, such as the interest only mortgage, can help homeowners free up funds during times of stress or crisis or in an economic crunch.

A median-priced home in Minnesota is just slightly higher (around $225,000) than the national average of $209,000.

Improvement Programs

There could be some relief in sight for communities in Minnesota facing high mortgage loan default rates. The Minnesota government is working diligently to stop the trend of foreclosures since the situation is not only bad for homeowners, but for the entire community as well. Houses in foreclosure - or sitting empty and for sale by investors - can depress the value of other homes in the area. Yards can remain unkempt as the house sits empty and begins to fall into disrepair.

A Buyer's Market

With all the changes in real estate in Minnesota, this can also be a good time for individuals looking for a property either for investment purposes or as a primary residence. By combining the services of interest only mortgage brokers in MN with the good deals on homes in various areas of the state, the buyer can purchase much more home than they might otherwise be able to afford. In ten or fifteen years, when the payments would balloon and the home would have to be sold or refinanced if the owner did not want to face those higher payments, the real estate market is predicted to have rebounded. Right now, it is a buyer's market.

Interest Only Mortgage Brokers in MN

There are many mortgage brokers in the state and they can be easily found at the Minnesota State Directory of Mortgage Brokers. You can request a list of brokers that are in your area or send an email question about brokers. Local real estate agents can offer suggestions for reputable brokers in the area.

Here is a list of interest only mortgage brokers in Minnesota:

Loan Pros and Cons

Typically, the interest only period of these loans extends five to ten years, but there are some interest only loans with a longer period of time where payments are applied to the interest only. During this time, nothing will be paid on the principle.

Venture Development—Minnesota's Premier Mortgage Broker--has a handy table that features the pros and cons of interest only loans.

By Lori Soard


 


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