Introduction to Interest-Only Mortgages
Are you considering an interest-only mortgage, but not sure where to start? 🏠
Interest-only mortgages can be a great option for first-time homebuyers, as they offer lower monthly payments and the ability to invest excess funds elsewhere. But, it's essential to understand the basics before making a decision. Here are some key points to consider:
- Interest-only mortgages allow you to pay only the interest on the loan for a set period, typically 5-10 years.
- After the interest-only period, the loan converts to a principal-and-interest loan, and your monthly payments increase.
- Interest-only mortgages often have lower monthly payments, but you won't build equity in your home during the interest-only period.
For more information, visit our Interest-Only Mortgages page or check out the Wikipedia article on interest-only loans.