FAQ's on zero down, interest only loans.

Yes, you can get an interest only loan without PMI. At Mortgage Match, the vast majority of lenders and investors we work with
do NOT require PMI. We always try to avoid using programs which require PMI. Only when a borrower is severely credit
challenged, and its their only option to get approved, do we even suggest a lender with PMI requirements. PMI (Private
Mortgage Insurance) is insurance you pay for to insure the lender against your defaulting on the loan. It can add considerable
extra money to your monthly mortgage payment. Obviously, it's an extra cost we want to avoid.

What's the current rate for interest only loans?

What's the minimum FICO score required to obtain a no-money-down, interest only loan?

What's the "good and bad" and "pros and cons" of interest only loans?

How do interest only loans actually work?

What's an 80/20 combo loan?

What's a 70/30 combo loan?

Can I buy a non-owner occupied or investor property with a zero down, interest only loan?

How can I figure out if an interest only loan would be good for me?

Why should I use Mortgage Match to obtain a zero down, interest only loan?

Can I get an interest only loan without PMI?

A.- Our job as a loan consultant would be a lot easier if there was a simple answer to this question. Unfortunately,

there's not. This frustrates mortgage seekers, and we hear about it everyday. In fact, here's a direct quote from an e-mail
we recently received...

"I have just started shopping. I am most interested in comparing the loan costs and rates for a 5-year interest only
loan... the loan amount being $300,000. I must admit finding out this info is difficult, since everyone wants to talk...
without answering the questions upfront. I have about 20 hours of research into this so far. I am just trying to find out
this information without talking to 20 people."

The author of the above e-mail complains that "everyone wants to talk". But, it's really the only way he'll get an accurate

answer to his question. And, if he, and all the other people who go from website to website looking for the answer to this
question, only knew that what they were looking for doesn't exist anywhere, they would find that getting an interest only
mortgage doesn't need to be as time-consuming, slow and tedious as they're making it out to be. A simple, friendly,

5-minute phone conversation will go a long way in giving you all the answers.

While it does seem that a simple, straight forward question is being asked here, there's no "cut and dry" answer to be
offered back. Here's why... the mortgage lenders and investors who package and provide interest only loans don't
extend their offerings based on a "current, interest-only rate". Instead, they look at a number of factors and issues about
a borrower before they determine an interest rate.

Even when a borrower has excellent credit, there are issues such as... how the borrower's income is earned (can it be
verified?)... does the borrower have "reserves"?... is there a down payment, if so, how much?... in what state is the
loan being made... and of course, the borrower's midscore FICO is very important. These are just a few of the factors
that help determine the "current interest rate".

And, not all "interest only" lenders look at the same factors, or place the same amount of importance on those factors.

So, without knowing something about the borrower, it's difficult to answer this "simple" question. Often, we ourselves don't
know what questions we'll need to ask, until we start talking to the borrower... then, in the course of conversation, things
come out which can help clear the picture.

There are a couple of exceptions, but to safely qualify for this loan through the widest selection of lenders, the borrower
needs a minimum, midscore FICO of 580. On the credit grading scale of excellent, good, fair and poor, a 580 midscore
falls into the "fair" category. One exception allows the borrower to have a midscore FICO of 560, but if the borrower has
collection accounts, the lender will require those accounts to be paid off.

The zero down, interest only loan is a very popular product these days... and for good reason. It's a very fine and proven
program for a lot of borrower's who have varying goals and objectives to achieve... from buying their first home, to freeing
up funds for investments, or to pay off other, high-interest debts like vehicle loans and credit cards.

This website, Mortgage Match, presents a very large amount of information pertaining to these loans. It's helped dozens
and dozens of borrowers obtain zero down, interest only mortgages. They're a good thing. They've enabled a lot of people
to own their own homes who otherwise may have had a problem.

Most people who obtain these loans won't keep them for their full 15- or 30-year term. In fact, the strategy many borrowers

use is to refinance their homes before the interest only option expires... and for many, this refinancing happens somewhere
between the 3rd and 5th year. Other borrowers use interest only loans to finance homes they only plan to keep, or live

in for 3 to 5 years.

Like any good thing that's attracted a lot of attention, there are those magazine and newspaper writers who find it beneficial
to "buck the trend". And, attempt to develop the angle that there's a downside to interest only loans. What these negative
viewpoints fail to mention or suggest, is that interest only loans, just like any other form of credit, can be bad strategies

if they're abused or not used correctly. Not using credit cards in a responsible manner has proved to be very bad for many
borrowers. But, it's very doubtful there will ever be a news article published which states that credit cards, by their very
function, are bad things to have in your wallet or purse.

Interest only loans offer a valuable and good option to home buyers and owners. They won't be the downfall of any borrower
who gets one and uses it for the right reason or reasons. They're wonderful home buying programs... with their low interest
rates and lower monthly payments... which very often are the answer to helping many people buy the home of their dreams.

By far, the vast majority of zero down, interest only loans which are approved every day are "80/20" combo loans. The 100%
financing, which a zero down loan provides, is split into two loans... the first loan is 80% of the purchase price, and the
second loan is 20% of the purchase price. The interest only option applies to the larger, first loan of 80%. It is usually a low
rate ARM (Adjustable Rate Mortgage). And, the interest only option is usually available for the first 5-years of the loan.

The 20% loan is usually a higher, fixed rate loan which does NOT have an interest only option. After the interest only option
on the 80 % loan expires, the payments revert to full principal and interest payments. It's not unusual for an interest only
loan to save the borrower $250 to $300 a month... and it could be more depending on the loan amount.

There are exceptions to this explanation of the 80/20 combo loan. There is also a 70/30 combo loan... where both the first
and second loans have interest only options. And, there's also a full 100% interest only option loan where there's no
combo split. Both the 70/30 combo and the 100% interest only mortgage require higher credit standards for loan approval.

There's also interest only mortgages where the option to pay interest only is longer than 5 years. This option can be
extended to 7, 10 and even 15 years. But, like the 70/30 combo and 100% loans, a longer option period requires significantly
higher credit standards than the common 80/20, 5-year option loan.

Yes, as a matter of fact, second homes, non-owner occupied and investor properties can be purchased with zero down,
interest only loans. For the most part, all of the details and considerations which apply to owner-occupied, zero down,
interest only loans, as outlined above in our questions and answers, apply to NOO properties as well. However, purchasing
NOO properties with zero down loans requires excellent credit... safely, a borrower needs to have a midscore FICO of 680 or
better, and the right debt-to-income ratio for loan approval. For FAQs on NOO property loans, please click here.

Truthfully, it's very doubtful you will be able to make this determination by going from mortgage website to mortgage website.
The best information available... is the information which pertains specifically to you and your borrowing profile. Consequently,
you should explore getting preapproved for a zero down, interest only loan... or whatever your loan of choice is. Whether you
decide to utilize preapproval here at Mortgage Match, or another mortgage website, preapproval should be free, fast, non-
intimidating and completely without obligation. If your preapproval is approached properly, you will know your interest rate, your
monthly payment, your loan costs, and how much mortgage you can afford... if you're not exactly sure. You will normally have the
answers to these questions within 24-hours. And usually, a brief and friendly 5 to 10 minute phone conversation is all that the
preapproval process requires.

Mortgage Match offers selection, experience and aggressive customer service. Mortgage Match features the largest lender
database available anywhere. This database includes the country's largest banks and savings & loans, wholesale lenders
and investors, and national and regional specialty niche lenders. Our loan consultants are all at the Senior level... richly
experienced and some of the most sought after professionals in the mortgage field. They know what it takes to get loans done.
Finally, Mortgage Match pledges to always go the extra mile to get you approved for the loan you want... and the best loan
available for your borrowing objectives. Mortgage Match has happy, grateful and satisfied mortgage clients all over the country
for virtually every type of loan available... let us help you get the loan or the home you want. Get started here.

"In hindsight, I can see that I could
not go wrong with Mortgage Match.
Thank you so much for helping to
make me and my family's dreams
come true. I don't know that anyone
else could have." ...Tibby Mendez,
El Paso, Texas

"I am most impressed with your
honesty... and always giving it to me
straight with no BS... thanks to Wayne,
getting my mortgage was a painless
experience."... Ralph Moore,
Hagerstown, Maryland

"Thanks for working as hard as you did to get us approved. I know it was
anything but easy. We will always be grateful and your supporters."
Glenn and Jean Wilson, Newport Beach, California

Please note: some of the issues pertaining to zero down, interest only loans for Non-Owner Occupied properties apply

to Owner Occupied properties as well... for FAQs on these loans click here.