Archive for the ‘Interest only loan’ Category

Are interest-only mortgages a good idea?

October 11th, 2010

Interest-only mortgages can be an attractive option for home buyers experiencing difficulty finding a mortgage because of a low income. Such home buyers do have a number of options, including discounted rates, longer terms, and interest-only mortgages. These are all reasonable ways to start the home-ownership process, but it should be remembered such options will increase the total cost of the home over the life of the loan.

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When is it a good idea to get an interest only mortgage?

June 15th, 2010

Interest only mortgages are a type of mortgage where the repayments are delayed for a few years.  They tend to be a more expensive option over the lifetime of the mortgage, but have lower initial repayments.  They are not usually a good option for a normal home buyer, but they may make sense for some types of home owners.

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