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New Mortgage Loans Designed to Help You Realize the American Dream

Sheryl Landrum
LoanBiz Columnist

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Article Rating , 4 out of 5 based on 1 votes

President George Bush said, "Home ownership lies at the heart of the America Dream. It is a key to upward mobility for low and middle-income Americans. It is an anchor for families and a source of stability for communities. It serves as the foundation of many people's financial security. And it is a source of pride for people who have worked hard to provide for their families."

Most of us would agree that this statement is true; however, owning a home and affording the mortgage can be expensive. Here are some new home mortgage loan programs that are designed to help consumers reach the "American Dream."  

A 30 Year Fixed Rate Home Mortgage Now Comes With an Interest Only Option

This mortgage product gives you the ability to lock into a long-term low interest rate while taking advantage of a lower monthly house payment by utilizing the interest-only mortgage payment option. However, once the ten year interest-only period is over, the mortgage loan becomes fully amortized and the full amount of the loan is now due in twenty years versus thirty years leading to a higher monthly mortgage payment.

40 and 50 Year Fully Amortized Home Mortgage Loans

Mortgage lenders are now offering forty and fifty year fully amortized home mortgage loans in order to stimulate the housing market. If your new home loan, or refinance loan is $400,000 at 6.375% interest your monthly mortgage payment is $2,495 a month with a thirty year loan. The same loan amount and interest rate amortized over forty years drops the mortgage payment to $2,306 and to $2,217 when amortized over fifty years making the dream of home ownership more affordable.

So go out and capture the "American Dream." Whether you are looking for a new home loan or thinking of refinancing your current mortgage, with home loan products like these your dreams can come true.

About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage in San Diego and Prudential Realty in Bonsall, California.

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