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An "Interest Only" Mortgage loan is a very popular alternative to traditional fixed rates. Gaining popularity at record speed these home loans allow a consumer to make " Interest Only" payments during a defined period of time for the loan. These programs can offer consumers greater purchasing power, increased cash flow and a number of other benefits. For example, one of the most common programs a is a 5 year interest only loan where the borrower has a fixed rate for five years and is only obligated to pay the interest owed every month. This could mean hundreds of dollars in monthly savings, increased purchasing power and many other benefits.
These loans are not for everybody however if you are self disciplined, have a good understanding of the time frame you will be in your home and understand the potential risks then these products may provide an extremely attractive option to many homeowners. |
