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Without a doubt about Interest-only mortgage loans

Without a doubt about Interest-only mortgage loans

Determine whether an interest-only mortgage loan is right for you personally

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You are considering an interest-only mortgage loan due to reduced initial repayments. Look at the advantages and disadvantages prior to going ahead. Make certain you are able greater repayments by the end associated with the interest-only duration.

In the event that you have home financing and are usually struggling together with your repayments, see problems having to pay your home loan for assistance.

Just just just How interest-only home loans work

For a home that is interest-only (home loan), your repayments only cover interest in the quantity lent (the key). For a collection duration (for instance, 5 years), you spend absolutely absolutely nothing off the quantity lent, so that it does not reduce.

The loan will change to a ‘principal and interest’ loan at the end of the interest-only period.