To avoid these problems and sometimes cut a better deal, buyers often use alternative mortgage programs. Just because financing is not based on conventional terms doesn't mean that a loan is irregular in some way. Unconventional mortgages are perfectly legitimate types of financing that can drop interest rates, lower monthly payments and reduce overall mortgage costs. However, be aware that alternative mortgages can also feature large down payments, changing monthly installments, negative amortization and interest rates that rise and fall randomly over the term of the loan. The point is that just because alternative loans differ from conventional loans does not mean that such differences are necessarily negative.
All loans are simply financial tools that are useful in some situations and inappropriate in others.
Deciding on a specific loan format depends on the circumstances of the buyer and their particular financing requirements. Not only should you compare different loan formats and terms, you should always compare loans individually. EasierHomeLoans does not make loans or credit decisions. This Web site is for educational purposes only. Copyright 1999-2001 EasierHomeLoans.