| An Interest Only Loan is a loan where for
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| | buyers, to refinance an existing loan, as
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| a set term the borrower pays only the
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| | bridging finance or to pay for home
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| interest on the capital - leaving the
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| | renovations. Most lenders will provide
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| capital amount owing. At the end of the
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| | borrowers with their Interest Only Loan
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| term the borrower may repay the principal
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| | Calculator - so repayments can be worked
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| as a lump sum, renew the Interest-Only
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| | out.The Advantages of an Interest Only
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| Mortgage, or (with some lenders) convert
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| | Loan include:Lower repayments - this may
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| the loan to a principal and interest
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| | suit if you wish to renovate the
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| payment loan.With an Interest Only Loan,
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| | property, or if your income is infrequent
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| you repay only the interest on the
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| | eg commissions or bonuses;If you expect
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| principal during the term of the loan. At
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| | to have a higher income in a few years
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| the end of that time - usually one to
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| | time;Reduces the cost of buying an
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| five years - you must repay the principal
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| | investment property in the
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| as a lump sum. As you would expect,
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| | short-term.However - Interest Only Loans,
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| repayments are lower than with a standard
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| | Interest Only Home Equity Loans or Lines
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| principal and interest loan.Typically, in
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| | of Credit - also come with some
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| the United States, borrowers take an
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| | disadvantages:Can be risky if the
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| Interest Only Loan for a five or ten
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| | property market falls, you could be stuck
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| year period - and after that time, the
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| | with the property or forced to sell at a
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| principal balance is amortized for the
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| | loss.If you decide to keep the property
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| remaining term.Interest Only Home Loans
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| | long term - you may be forced to repay
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| are popular among investors who plan to
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| | the principal in full at the end of the
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| sell the property in the short-term for
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| | loan term.So...Borrower Beware...
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| profit. If you're considering purchasing
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| | Interest Only Loans suits some investors
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| an investment property - then an Interest
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| | - but the risks may outweigh the
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| Only Loan could be the way to go.
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| | benefits for the ordinary home-buyer!Gay
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| Offering lower repayments, with lots of
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| | Redmile is the webmaster of several
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| the same features as traditional loans,
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| | finance and investment sites. Having
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| interest only loans are particularly
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| | purchased her own home and investment
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| suitable for investors.However, that is
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| | properties, she fully understands the
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| not to say that Interest Only Mortgage
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| | importance of securing the best Loan
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| Loans are not suitable for general home
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| | available.
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