The Benefits of a Miami Interest Only Mortgage

The MTA version of the typical interest only mortgage has many different benefits. MTAs offer the homeowner three basic benefits.

First, MTAs offer great flexibility. Since you have four monthly payment options, you may make a decision on how much you are going to pay based on your monthly income and expenses for that particular month. If your monthly cash flow for a particular month is good, you can pay the maximum payment (15 year amortization.) On the other hand, if you have an unexpected expense, you may decide to pay the minimum payment.

Second, since the minimum monthly payment is lower than in a typical interest only mortgage, you can afford to buy a more expensive home. This may be a good choice if you think your income will grow considerably in the next five years or if you are going to be in the home for less than five years. However, you must take into account that when you sell your home, you may owe more than the house is worth.

Finally, you may decide on an MTA as a creative way to fund your retirement, your children’s education or the purchase of additional assets. Since part of the monthly payment is tax-deductible and you can pay a lower monthly payment, you may want to place the additional money that you keep in your pocket in a investment fund that will generate a bigger return on your money.

Of course, before doing it, you want to talk to your financial planner about this alternative.