Interest only mortgages can be a practical consideration in housing areas where the appreciation of the homes is greater than what your monthly mortgage payments would pay down on the balance of a conventional loan. For example, if you only lower your mortgage balance by 4% with a conventional loan, but you decide to do an interest only loan and your home appreciates by 4%, you can still make money at the time your home sells.
Apply Here – Check out our short form – free quote request
An interest only mortgage may sound like a strange arrangement, but there are several circumstances that make it appropriate. For instance, if you are only planning on staying in your home for a short period of time, it may make sense to get by with less monthly payments instead of using the extra money to pay down the balance on the loan.
Interest only mortgages are not for everyone. Only speaking with a qualified mortgage professional can reveal the best possible fit for your loan needs. On our site we offer a free short no obligation application to get competing quotes and loan information from mortgage broker professionals.
With the lower monthly payments an interest only mortgage affords you it might be possible to pay down high interest debts or furnish your new home. And you may still earn money of your home if property values are appreciating. This appreciation can help to offset the equity you would ordinarily gain from a conventional loan.