| One of the great things about interest-only mortgages | | | | repay the interest along with the principal in the |
| lies in the fact that you they are not interest-only. You | | | | specified time. |
| also need to repay the principal! Interest-only mortgage | | | | Since interest-only mortgage loans allow for a |
| loans have been in existence for a long time, contrary | | | | specified period of time for repayment, which could |
| to what some people think. They are loans for which | | | | sometimes be up to 30 years. This also means that |
| the borrower needs to only pay the interest for a | | | | they are appealing to businessmen and the very rich. |
| specified period of time, rather than the principal and | | | | What they do is invest the money in some other |
| interest. These loans are becoming increasingly popular, | | | | business and repay the interest along with the principal, |
| particularly with context to the booming real estate | | | | with the money generated out of the business. |
| business, with houses becomes more expensive and | | | | Whatever may be the reason for going in for an |
| fancy. | | | | interest-only mortgage, always remember not to go by |
| Interest-only mortgages come with their advantages | | | | certain assumptions. For example, you might not have |
| and disadvantages. What they have done though is | | | | a steady career path; or not everything will always be |
| bring quality housing nearer to aspiring house owners, | | | | hunky dory with your business. Five years down the |
| who until now could not even dream of purchasing | | | | line, if something goes horribly wrong, will you be able |
| their own house. They are appealing to such | | | | to repay the principal? One has to make a thorough |
| borrowers. These borrowers are fairly confident of | | | | analysis of one's financial position and address future |
| repaying the interest in the specified amount of time. | | | | concerns in the present, before going in for an |
| They are also popular with young executives. For | | | | interest-only mortgage loan. The best thing perhaps |
| young executives who are starting off on a career, | | | | would be to meet your financial advisor and arm |
| interest-only mortgages are considered a less risky | | | | yourself with the facts before taking the all important |
| proposition. This is due to the simple reason that it is | | | | loan decision. |
| assumed that their career growth will enable them to | | | | |