Interest Only Mortgages
Understanding Interest-Only Mortgages:
Interest-Only Mortgages offer borrowers the option to pay just the interest on the loan for a predefined period, typically between 5 to 10 years. During this interest-only period, monthly payments won't go towards reducing the loan's principal amount. After this initial phase, the mortgage reverts to regular payments that cover both interest and principal, often resulting in higher monthly costs.
Who Benefits from an Interest-Only Mortgage?