Free Mortgage advice - Interest-Only Mortgage

Sooner or later you will be required to make a decision with regard to what sort of mortgage is best suited to your personal circumstances. There are many factors to take into account and you will find that the Free Mortgage Advice web site is a good place to start considering what is on offer. The site is not intended to be a substitute for your professional financial adviser, or broker, but may assist you in preparing a plan to better understand the various deals on offer. So, Please Click Here to visit the Free Mortgage Advice Web Site from which the following is an extract.

The term interest-only mortgage is misleading. Obviously, there is no such thing as an interest-only mortgage, because sooner or later you will still have to pay back the loan principal. The thing to remember is that when you get an interest-only mortgage, what you’re really getting is an interest-only payment method but somewhere along the line, the actual loan has to be repaid.

You should also bear in mind that the actual benefits of interest-only mortgages are frequently overstated. With a standard mortgage, as much as 95% of each dollar paid to the lender may be swallowed up in loan interest. Therefore on a $100,000 standard loan with 7% interest, the total payment could be $700 with the $665 going to interest and only $35 for equity.

A Brief History of Interest-Only Mortgages

Interest-only mortgages have been available for some considerable time, and the idea behind them was developed from the less rigid and innovative jumbo mortgage markets. Consequently, interest-only mortgages are often a loan type preferred by smart investors and better off clients, who may decide to utilize the principal portion of their payment on their wider investments.

Please Click Here to visit the Free Mortgage Advice Web Site,and read the complete article.

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interest only mortgage advice
interest only mortgage advice