« Investment Real Estate | Main | Mortgage Loans: Understanding Rate »
July 28, 2006
Interest Only
Interest-only mortgages have become increasingly popular in today's world. They are aggressively promoted by leading lenders and brokers. But are they for everyone? An interest-only mortgage is ideally suited for someone whose income is mostly in commissions and bonuses, or for someone who expects to earn a lot more at a future point of time or someone who is confident that his present investments will make money at a later stage. A mortgage is considered interest-only if the scheduled monthly payment towards mortgage which the borrower is required to make consists of the interest only. The option to pay the interest is for a specified period. It could be for 5 years, 10 years and sometimes even 30 years. If the borrowers prefers, they also have the option of paying more than interest if they want
From Interest Only
Posted by Chris at July 28, 2006 01:59 PM
