Interest Only Loans

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" colspan=2 height=165 BGCOLOR="#99CC66" TEXT="#080000"> <div> <FONT SIZE="5" COLOR="#009900" FACE="Times New Roman" ><A HREF="index.htm" TARGET="_top" TITLE="Mortgage Finance and Home Loans"><I><B><IMG SRC="109dc5b0.png" border=0 width="220" height="91" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></A><I><B>Mortgage Finance and Home Loans</B></I></FONT><I><B>    </B></I><I><B> |     </B></I><A HREF="index.htm" TARGET="_top" TITLE="Mortgage Finance and Home Loans"><I><B>home</B></I></A></div> <div> <A HREF="id24.htm" TARGET="_top" TITLE="Fixed Interest Loans"><I><B>Fixed Interest Loans</B></I></A><I><B>   |   </B></I><A HREF="id25.htm" TARGET="_top" TITLE="Adjustable Rate Mortgages"><I><B>Adjustable Rate Mortgages</B></I></A><I><B>   |   </B></I><A HREF="id26.htm" TARGET="_top" TITLE="No Money Down Loans"><I><B>No Money Down Loans</B></I></A><I><B>   |   </B></I><I><B>Interest Only Loans</B></I><I><B>   |   </B></I><A HREF="id30.htm" TARGET="_top" TITLE="Line of Credit"><I><B>Line of Credit</B></I></A><I><B>   |   </B></I><A HREF="id32.htm" TARGET="_top" TITLE="Home Construction"><I><B>Home Construction</B></I></A><I><B>   |   </B></I><A HREF="id34.htm" TARGET="_top" TITLE="First Time Buyer"><I><B>First Time Buyer</B></I></A><I><B>   |   </B></I><A HREF="id35.htm" TARGET="_top" TITLE="Second Mortgage"><I><B>Second Mortgage</B></I></A><I><B>   |   </B></I><A HREF="id37.htm" TARGET="_top" TITLE="Stated Income"><I><B>Stated Income</B></I></A><I><B>   |   </B></I><A HREF="id48.htm" TARGET="_top" TITLE="Find a REALTOR®"><I><B>Find a REALTOR®</B></I></A><I><B>   |   </B></I><A HREF="id49.htm" TARGET="_top" TITLE="Foreclosure"><I><B>Foreclosure</B></I></A><I><B>   |   </B></I><A HREF="id55.htm" TARGET="_top" TITLE="VA"><I><B>VA</B></I></A><I><B>   |   </B></I><A HREF="id57.htm" TARGET="_top" TITLE="Imperfect Credit"><I><B>Imperfect Credit</B></I></A></div> <bR> <div> </div> </td> </tr><tr> <td valign="top" width=165 BGCOLOR="#FFFFCC" TEXT="#080000"> <div> <I><B><IMG SRC="0ec925f0.jpg" border=0 width="146" height="95" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></div> <div> <A HREF="id60.htm" TARGET="_top" TITLE="Purchase"><I><B><IMG SRC="0cf92290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="3"></B></I></A><A HREF="id35.htm" TARGET="_top" TITLE="Second Mortgage"><I><B><IMG SRC="0d492290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="2"></B></I></A></div> <div> <A HREF="id30.htm" TARGET="_top" TITLE="Line of Credit"><I><B><IMG SRC="0d992290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="2"></B></I></A></div> <div> <A HREF="id16.htm" TARGET="_top" TITLE="Refinance"><I><B><IMG SRC="0d792290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></A></div> <div> <I><B><IMG SRC="0dd92290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></div> <div> <I><B><IMG SRC="0e092290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></div> <div> <A HREF="id17.htm" TARGET="_top" TITLE="Commercial Loans"><I><B><IMG SRC="0db92280.jpg" border=0 width="146" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></A></div> <div> <A HREF="id55.htm" TARGET="_top" TITLE="VA"><I><B><IMG SRC="0e292290.jpg" border=0 width="146" height="41" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></I></A></div> <bR> </td> <td valign="top" height=315 width="100%" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I><B>Interest Only Loans</B></I></div> <div> <IMG SRC="1717b9a0.jpg" border=0 width="123" height="154" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <I><B>Interest Only Loan</B></I></div> <div> <I><B>Interest-only loans are available with 1 month or 3,5,7, & 10 year terms, all amortized over 30 years but the rates are only fixed for a time.  You only pay the interest on the money you borrow.  That means the principal balance remains the same, unless you choose to make principal payments, which you can do at any time.  </B></I></div> <bR> <div> <I><B>It's a great thing for first-time buyers or people who don't intend to be in their place forever. They get the benefits of home-price appreciation at a lower cost, and some are making big profits doing it.  </B></I></div> <bR> <div> <I><B>Here's an example of a good use of an interest-only loan:  You have lived in your home for two or more years.  You can rent it for $500 more than your new interest-only payment after you take out a bunch of money for a big down payment on a new, bigger house. You move into your new, big house and rent out your old house for three more years, then sell that house for a lot more than you would have sold it for now, three years later, tax free.  (As long as you live in your house for two of the five years you own it you can sell it without paying capital gains.)  </B></I></div> <bR> <div> <I><B>If that house you rented is worth $300,000 now and you make $500 per month for the next three years and they sell it for $400,000, you just made an extra $100,000.  This kind of risk works in an appreciating market.  We will leave it up to you to decide if the market is appreciating or not.  You should talk to your tax accountant or CPA to determine if you are in a position to take advantage of this type of program. </B></I></div> </td> </tr></table></body>