Interest only (mortgages)

JoeFat · #1 (**permalink**) 11-29-2006, 06:17 AM

Hey do most of you find your clients using the interest only mortgages? I've noticed with rising rates

and prices that is becoming alot more popular?

Secret! · #2 (**permalink**) 11-29-2006, 01:05 PM

That particular loan is designed for a narrow slice of applicants, high net worth, big fast growing incomes, lower LTV's, etc. NOT for every Tom, Dick & Harry applicant ... Be Careful who you rcommend it to.

Speak with a couple of underwriters (NOT "commissioned AE's") at your favorite wholesaler, to get a feel on how to identify the right type of applicant, if you get no guidance from your boss.

Greg · #3 (**permalink**) 11-29-2006, 04:52 PM

I try to offer them to people who have fluctuating income. Self Employed, Commission Only, and Investors.

But, I do my best to make sure they can afford a P&I payment if I have a W2.