Do homework before choosing home loan
Dear Dr. Don, We are first-time homebuyers looking at a foreclosed home worth about $50,000. We have a somewhat small budget and can only make a small down payment of $1,000 or less (more like $500). We were told we should go with a 30-year, interest-only fixed-rate home loan , since we need small monthly payments and intend to sell it in probably five to 10 years.

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