There are different types of mortgage loans available. A form of mortgage loan arrangement called an interest only mortgage affords the borrower low monthly payments that go towards paying off the interest only. The interest payments will run for a set amount of time, and when the term is due, the borrower owes the lender for the total amount of the principal. So what are the benefits of an interest only mortgage? To begin with, you might ask yourself who would want to take out an interest only loan? First of all, an interest only mortgage is a cheaper way […]

Interest only mortgages have made a comeback in recent years. This loan type was popular some years ago but became less available due to the financial crisis of a decade ago. Because the housing market has performed considerably better since then, mortgage lenders are now confident to offer interest-only loans to borrowers. So, is interest only mortgage a good idea? To answer this, lets’s first answer this question: What is an interest only mortgage? An interest only mortgage is designed to offer lenders low monthly payments that reduce the interest alone. Since you are not paying off the principal amount […]