What do you think about 2/28 mortgage ?
by Mortgage Rates on Sunday, September 19th, 2010 | 4 Comments
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If you plan to sell in a few months, ask about “Pick-a-payment” option. This allows to make very low payments for a few months. Usually all the payments are really low, but of course it depends where you live. I work for a Mortgage Co. in Phoenix, AZ, and most of the min. payments have been from $ 400-800 a month. But, please ask before signing anything, and make sure you understand, don’t feel embarrased to ask a lot of questions.
Be very careful, most 2/28′s have a pre-payment penalty. On some of them you can avoid it by taking a higher interest rate.
Another thing you may want to check on since you plan on selling so soon is an interest only ARM. Some ARM’s are assumable and that could attract buyers. The interest only payments would maximize your cash flow until you sell.
Visit my website at http://www.firsthorizon.com. After the .com type in/nancylabont
Or you may call me toll free at 800 971-4638.
I’ve been a mortgage lender for more than 20 years and can loan in most areas of the country.
I’ll be happy to help you look at some options at no charge.
look at other credit options. 2/28′s are good for those in need of refinance AND repair their credit. Since you’re just looking for a cash out refi, you should look for something without PPP, prepayment penalties, and possibly something along the lines of a 6 month LIBOR or a straight cash out refi.
There is some good info here.