Sentences with phrase «first few years of the loan»

They require fixed - rate interest in the first few years of the loan followed by variable rate interest after that.

This happens because a balloon loan requires interest - only payments for the first few years of the loan.

Also, interest - only borrowers can face a marked step - up in their required repayments once they come off the interest - only period (after the first few years of the loan term).

By contrast, homeowners who intend to move or refinance within the first few years of the loan may prefer lender - paid MI, which raises the mortgage rate by a small amount, but which requires no separate payment.

By contrast, homeowners who intend to move or refinance within the first few years of the loan may prefer lender - paid MI, which raises the mortgage rate by a small amount, but which requires no separate payment.

A particular form of convertible mortgage offering a discounted interest rate at the beginning of the loan that gradually increases during the first few years of the loan.

For example, in a «lender buydown,» the lender offers lower monthly payments during the first few years of the loan.

You can pay them off early, although mortgages will sometimes have prepayment penalties for the first few years of the loan.

Buy Down When the lender and / or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan.

As mentioned, the first few years of a loan, a borrower will pay a lot of interest fees.

One of the biggest reasons that ARMs are a great option is because they have a lower fixed rate than those of traditional loans in the first few years of the loan.

Usually, the rate is fixed for the first few years of the loan and then begins to adjust periodically to reflect current market conditions.

The interest component in EMIs would be high during the first few years of your loan tenure.

To make monthly mortgage payments more affordable, many lenders offer home loans that allow you to (1) pay only the interest on the loan during the first few years of the loan term or (2) make only a specified minimum payment that could be less than the monthly interest on the loan.

Motorcycle gap insurance is recommended if you owe more than your bike is worth, which often happens in the first few years of a loan period.

Interest - Only Payments Can Backfire Some HELOCs allow interest - only payments on the amount borrowed during the first few years of the loan.

Buydown This is when the lender and / or home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan.

The loan was underwritten using pro forma, or projected, income and valuation measures based on the assumption that rents would be increased to market rates in the first few years of the loan's life.