Interest Only Mortgage Loan Advice
If you looking for the loan with flexibility, interest only mortgage loan might be one of the best option. This option allow borrower to make payment on interest only at each month. This option is suitable for those without a fixed income such sale persons. In fact, you are just paying for the interest only, the capital sum still owed at the end of the mortgage term.
When taken out the interest only loan, borrower suppose to make payment into saving account, endowment or other investment. This investment will then generate sufficient returns to pay off the capital sum.
Be reminded that If you choose this option, eventually you need to make up payments for all the months/years you weren't paying on the principle.
When taking this interest only loan, there are some risks associated :-
1) First, the house price is not granted will be up.
2) The interest will be increase and you are paying much at the end of the loan.
3) The investment of this loan option is not guaranteed. If the investment fund not building up, you may just paying interest only for the term period. If the principal amount not reduce, you will get troubles after retire. At the end the house is not belong to you.
Thus, if you considered the loan. Make sure you aware of all these threats and have a proper planning to overcome the problems.
For more information about other loans, please check out Various Loans Guide instead of Interest Only Mortgage Loan Advice
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