{"id":16711,"date":"2012-09-12T22:43:21","date_gmt":"2012-09-12T21:43:21","guid":{"rendered":"http:\/\/www.filmdetail.com\/?p=16711"},"modified":"2021-03-29T22:44:51","modified_gmt":"2021-03-29T21:44:51","slug":"16711","status":"publish","type":"post","link":"https:\/\/www.filmdetail.com\/2012\/09\/12\/16711\/","title":{"rendered":""},"content":{"rendered":"

Some lenders allow you to take out an interest-only mortgage which means that your monthly payments only cover the interest that accrues (check<\/a> here). In the example above, if you borrowed $100,000 at 5% and paid $25,000 annually, you’d only owe $80,000. This is good for someone who wants to pay for home education, but many borrowers are in this situation because they are new to the housing market. The interest-only interest is calculated for 12 months (not 12-36 months), and you will get a $0.25 payment per $1,000 you borrow. This is similar to the interest rate for conventional mortgages, but the payment amount is much higher (up to 15% above the cost of borrowing).<\/p>\n

However, if you borrow $100,000 and pay an annual $25,000, you would then owe $109,000, but with no interest. Interest-only loans aren’t always that low, but they are affordable when compared to conventional mortgages.<\/p>\n

\"Home<\/p>\n

Loan to Value Ratio<\/strong><\/p>\n

A Loan-to-Value Ratio (LTV) is the amount of debt to a specific home value. LTV is calculated by multiplying the cost of the property by the number of days the property is owned by the buyer. For example, a $300,000 home has a $50,000 LTV and a 10-day period to own the property. If you are buying a home for a family of three, the LTV of the property would be $250,000 (10 x $50,000). In this example, the lender would give you $75,000 up front, but the remaining $35,000 would be compounded each month for 18 months.<\/p>\n

A Loan-to-Value Ratio (LTV) is the amount of debt to a specific home value. LTV is calculated by multiplying the cost of the property by the number of days the property is owned by the buyer. For example, a $300,000 home has a $50,000 LTV and a 10-day period to own the property. If you are buying a home for a family of three, the LTV of the property would be $250,000 (10 x $50,000). In this example, the lender would give you $75,000 up front, but the remaining $35,000 would be compounded each month for 18 months. The LTV calculation is an important consideration for the investor because a low LTV will result in a higher interest rate.<\/p>\n

Taxes. There are numerous tax deductions that can be claimed by an investor. Since a property is sold for its face value, taxes will also be calculated. To see how a property tax calculation works, see the article on Tax Implications of a REIT Investment in Real Estate.<\/p>\n","protected":false},"excerpt":{"rendered":"

Some lenders allow you to take out an interest-only mortgage which means that your monthly payments only cover the interest that accrues (check here). In the example above, if you borrowed $100,000 at 5% and paid $25,000 annually, you’d only owe $80,000. This is good for someone who wants to pay for home education, but […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/posts\/16711"}],"collection":[{"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/comments?post=16711"}],"version-history":[{"count":1,"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/posts\/16711\/revisions"}],"predecessor-version":[{"id":16712,"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/posts\/16711\/revisions\/16712"}],"wp:attachment":[{"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/media?parent=16711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/categories?post=16711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.filmdetail.com\/wp-json\/wp\/v2\/tags?post=16711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}