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HYBRID ADJUSTABLE-RATE MORTGAGES (ARMS)

What Is a Interest Only Mortgage?

This type of mortgage allows you to pay only interest charged every month for the loan period. This means you don’t have to pay back the borrowed amount until the end of the term. As a borrower, you should know that interest only mortgages offer lower payments for a while, they also lead to a big jump in payments when the interest period ends.

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Advantages and Disadvantages of Interest Only Mortgages

Before choosing interest-only loans, go over all the pros and cons they bring. The advantages and disadvantages of IOL are:

  • Low monthly payments during the term
  • You can buy a larger home later if you qualify for a larger loan amount
  • You can put extra money into the investment to build net worth
  • Some people opt to spend extra cash instead of investing it
  • Income sometimes doesn’t grow as quickly as planned

When you are sure you made the right decision, take the first step into becoming a homeowner – contact Champion Mortgage and get the loan you want.

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