 |
You can count on your
income to climb through earnings, bonuses or commissions,
and you plan to apply additional earnings toward
principle, which will reduce the amount of your
monthly payment when the interest-only term expires. |
|
Or, you can count on additional income
in the near future: you know you’ll be able
to afford the higher monthly mortgage payments when
principal and interest combine. |
|
You’re a smart investor: the
house you’re eyeing is expected to dramatically
increase in value—an equity appreciation benefit
you’ll realize when you sell or refinance. |
|
Your interest-only loan purchase
is part of an overall investment strategy that may
include real estate, a retirement fund, a college
education for yourself or education funds for your
children. |
|
You already have a significant amount
of equity in your home. |
|
You plan to contribute to your investments
or savings account to lighten the load of forthcoming
higher payments. |
|
Your salary or income
is static—you can’t expect extra earnings
necessary to cover the monthly mortgage increase.
|
|
Your future promises additional expenses
such as auto loans, student loans, education expenses
for you or your children or high-interest debt without
additional income boosts. |
|
You have a history of overextending
yourself about debt—it’s unlikely you’ll
be able to afford more mortgage than you and your
income can manage. |
