<h3>Here is a Simple Mortgage Calculator</h3>
<p>This <em>mortgage calculator</em> can be used to figure out and estimate monthly  payments of a home mortgage loan, based on the home's sale price, the  term of the loan desired.</p>
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<p><strong>Courtesy of Jimmie Van Hooser your REALTOR®  - 931-320-2142 </strong></p>
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<p><strong>Specialty Mortgages: Risks and Rewards</strong></p>
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<p>In high-priced housing markets, it can be difficult to afford a home.  That’s why a growing number of home buyers are forgoing traditional  fixed-rate mortgages and standard adjustable-rate mortgages and instead  opting for a specialty mortgage that lets them “stretch” their income so  they can qualify for a larger loan.</p>
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<p>But before you choose one of these mortgages, make sure you understand the risks and how they work.</p>
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<p>Specialty mortgages often begin with a low introductory interest rate  or payment plan — a “teaser”— but the monthly mortgage payments are  likely to increase a lot in the future. Some are “low documentation”  mortgages that come with easier standards for qualifying, but also  higher interest rates or higher fees. Some lenders will loan you 100  percent or more of the home’s value, but these mortgages can present a  big financial risk if the value of the house drops.</p>
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<p><strong>Specialty Mortgages Can:</strong></p>
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<ul>
<li>Pose a greater risk that you won’t be able to afford the mortgage  payment in the future, compared to fixed rate mortgages and traditional  adjustable rate mortgages.</li>
<li>Have monthly payments that increase by as much <strong>as 50 percent or more </strong>when the introductory period ends.</li>
<li>Cause your loan balance (the amount you still owe) to get larger each month instead of smaller.</li>
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<p><strong>Common Types of Specialty Mortgages:</strong></p>
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<ul>
<li><strong>Interest-Only Mortgages: </strong>Your monthly mortgage  payment only covers the interest you owe on the loan for the first 5 to  10 years of the loan, and you pay nothing to reduce the total amount you  borrowed (this is called the “principal”). After the interest-only  period, you start paying higher monthly payments that cover both the  interest and principal that must be repaid over the remaining term of  the loan.</li>
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<li><strong>Negative Amortization Mortgages: </strong>Your monthly  payment is less than the amount of interest you owe on the loan. The  unpaid interest gets added to the loan’s principal amount, causing the  total amount you owe to increase each month instead of getting smaller.</li>
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<li><strong>Option Payment ARM Mortgages: </strong>You have the option  to make different types of monthly payments with this mortgage. For  example, you may make a minimum payment that is less than the amount  needed to cover the interest and increases the total amount of your  loan; an interest-only payment, or payments calculated to pay off the  loan over either 30 years or 15 years.</li>
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<li><strong>40-Year Mortgages: </strong>You pay off your loan over 40  years, instead of the usual 30 years. While this reduces your monthly  payment and helps you qualify to buy a home, you pay off the balance of  your loan much more slowly and end up paying much more interest. </li>
</ul>
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<p><strong>Questions to Consider Before Choosing a Specialty Mortgage:</strong></p>
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<ul>
<li>How much can my monthly payments increase and how soon can these increases happen?</li>
<li>Do I expect my income to increase or do I expect to move before my payments go up?</li>
<li>Will I be able to afford the mortgage when the payments increase?</li>
<li>Am I paying down my loan balance each month, or is it staying the same or even increasing?</li>
<li>Will I have to pay a penalty if I refinance my mortgage or sell my house?</li>
<li>What is my goal in buying this property? Am I considering a riskier  mortgage to buy a more expensive house than I can realistically afford?</li>
</ul>
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<p>Be sure you work with a REALTOR® and lender who can discuss different options and address your questions and concerns!</p>
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<p><em>Learn about the</em><em> NATIONAL ASSOCIATION OF REALTORS® Housing Opportunity Program at <a href="http://www.realtors.org/housingopportunity">www.REALTOR.org/housingopportunity</a>.</em><em> For more information on predatory mortgage lending practices, visit the Center for Responsible Lending at <span style="text-decoration: underline;">www.responsiblelending.org</span>.</em></p>