Bankers Mortgage Corporation Home | About Us | Contact Us
need help?
Homebuying Center Refinancing Center Home Equity Center Debt Solutions Learning Center
Interest Only Loans Home Equity Center Reverse Mortgages Commercial Loans
Check Loan Payments
loan amount
Rate Points APR Payment
Conforming 15 Year Fixed
6.250% 0.0 6.250% $0
Conforming FHA 30 Year Fixed
6.125% 0.0 6.125% $0
Conforming 1 Year ARM
rate not available
Conforming VA 30 Year Fixed
6.125% 0.0 6.125% $0
Conforming 30 Year Fixed
6.250% 0.125 6.262% $0
Non-Conforming 30 Year Fixed
rate not available
Custom Loan Quote
First Name
Last Name
Email
Phone
Loan Amount
Testimonials
Luis and wish to express our sincere thanks for all you did for us in making it possible to secure a mortgage and become First-Time homeowners. Your dedication and concern on our behalf is deeply appreciated. The professionalism and knowledge in handling our many questions, your endless patience with our repeated phone calls and visits provided the guidance we needed to allow us to purchase our home. We could not have done it without your constant attention to detail and making us aware of the many steps that had to be taken to secure the mortgage. You were the ink that put it all together! Once again, our many thanks and deep appreciation for all your efforts and the efficient manner that our application was handled by you and your very dedicated staff. Sincerely, Anmol K. Deol
—Anmol K. Deol.
more testimonials >
MMG Report
Update
Wholesale inflation was reported higher than expected this morning reflecting the rise in energy and commodity costs. The Producer Price Index (PPI) rose 1.2% in July versus expectations of 0.6% while the core PPI, which excludes food and energy, rose...
Send Page To a Friend
Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up for our Email Newsletter
For Email Marketing you can trust

Interest Only Loan Risk Explained
The truth about interest only loans – and negative amortization.
There is a common misperception that all interest only loans have a feature called negative amortization. Wrong answer, most interest-only loan programs that are available with short term fixed rates DO NOT have negative amortization.

How do you measure your personal risk level?
Many factors go in to determining if an interest only loan is right for you. It is imperative that you understand the following points before deciding on an interest only loan:
  • If you are on a fixed income and are relatively certain that it may not rise in the future, then interest only loans may bear a greater risk for you. We will review your needs and goals. This is a good time to check with us.

  • Shorter fixed rate terms and then adjustable loans for the remaining portion of 30 years. Examples: 3 year fixed – then adjustable loan, 5 year fixed – then adjustable loan, 7 year fixed, etc. – then adjustable loan. After the fixed (interest only) term of the loan has ended you will begin to pay "principal and interest" payments.  The possibility of payment shock is distinct possibility for those consumers who hold on to these loans past the interest only period. Here's what happens: the loan has a 30 year term, after the interest only period, you now have the remaining years to fully amortize the loan balance.  Remember, the payment shock is very real for those consumers who have paid nothing towards principal in the interest only period.

  • The more principal you pay down during your interest-only period the less shock your new payments will be but it doesn't mean payment shock will not exist since many factors go into determining your payments when the time comes including then current interest rates, and there is always the possibility that rates will be lower at the end of the interest only period. The best thing to do is to check with one of our experts, we'll help you decide what is best for you!
  Bankers Mortgage Corporation
255 Old New Brunswick Rd S210
Piscataway, NJ 08854
Fax (732) 562-9385

State Licensing Information|Privacy|Legal|Patriot Act
Equal Housing Opportunity

All content ©1999-2008 MorSystems™ All rights reserved.
Account login
 
Bankers Mortgage Corporation - Site Map

Homebuying Center
Mortgage and lending information for purchase and home buying loans.
Refinance Center
Mortgage and lending information for refinance loans.
Home Equity Center
Mortgage and lending information for home equity loans.
Learning Center
Mortgage, lending, and credit information.
Less Than Perfect Credit
Too Much Debt? -
Financial Calculators
Financial, mortgage and lending calculators.
Today's Rates
Check for up to date rates and loan programs.
Commercial Loans
Commercial loans programs and information.
Construction Loans
Commercial loans programs and information.
Interest Only Loans
Interest only loan programs and information.
Relocation Loans
Relocation loan programs and information.
Loan Agents
The best loan agents.
Staff
Our Staff Members.
Realtors
Our favorite real estate agents.
Cities we serve
Piscataway, Edison, Plainfield, South Plainfield, North Plainfield, Dunellen, Middlesex, Bridgewater, Fanwood, Scotch Plains, Clark, Westfield, Union, East Orange, Orange, Irvington, Hillside, Trenton, Perth Amboy, South Amboy, Newark, Beaufort
440 | 45

Mortgage web site design powered by MorSystems. Get your own mortgage website at MorSystems.com. Free trials for all mortgage websites.