Are you looking for a way to keep your mortgage costs down? You may want to consider an interest-only mortgage.
With an interest-only mortgage, you only pay the interest for a set period of time, allowing you to save money for a short-term period.
Save money with a lower interest rate.
Lock in your rate today before they rise.
How Does An Interest-Only Mortgage Work?
Interest-only mortgages can be structured in a couple of different ways. The most common way is to make interest-only payments for the first five or ten years of the loan. Once that time is over, you will pay both principal and interest.
Is An Interest-Only Mortgage Good For Me?
The initial savings obtained from using an interest-only mortgage can be pretty tempting. However, there are some things to consider before moving forward with this option. The largest deterrent is that your monthly payment will increase once the initial interest-only terms have ended – usually by quite a bit of money.
Something else to consider is that your principal balance does not change during the interest-only period. That means that you will not gain equity as quickly as you would with a traditional mortgage.
Want More Information On Interest Only Loans?
If you’d like more information, let’s talk. We can go over your situation and see if an interest-only mortgage would be a good choice for you.