![]() |
Guide to Interest Only MortgagesHere is a useful guide to interest only mortgages. An interest only mortgage is one where your regular payments only go to pay off the interest on the money you borrow. You will invest to pay off the capital sum at the end of the mortgage term. An interest only mortgage means your monthly payments cover only the interest on the loan. They do not pay off the amount you owe. So, at the end of the mortgage term, assuming you have made all the interest payments, you will owe the same amount that you borrowed at the beginning. You need to have a lump sum available to pay the mortgage back in one go at this time. An interest only mortgage stays the same throughout the mortgage term. Interest and a premium to an investment scheme are paid monthly. At the end of the term, the proceeds from the investment vehicle are intended to repay the mortgage. The amount will depend on the performance of the investment scheme. If you choose an interest-only mortgage you are responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term. With this type of mortgage you only pay the interest accrued on the mortgage each month. It is usual for the borrower to take out a savings or investment plan at the same time as applying for the mortgage; this could be an ISA, Pension or Endowment plan. Endowment policies used to be a popular way to build up funds to repay the capital of interest-only mortgages. However, some people have found these policies haven't built up enough money to pay off the full mortgage amount at the end of the mortgage term. Make sure you make arrangements to pay off the loan when the mortgage ends. If you don't, you could lose your home. The main advantage to an interest only mortgage is initially seen in the payments you make to your lender. The fact that you will only be repaying your interest here means that your monthly payments will be much lower than they would be for a repayment product. If your investment does not give you good enough returns, you won't have enough money to repay the capital owed. So, it's vital to take good and qualified advice before buying an interest only product and then to track your investment progress on a regular basis. You also need to consider the fact that the rates you get for an interest only mortgage may not be as favourable as those on offer for repayment mortgages. You may freely reprint this article provided the author's biography remains intact: About The Author John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Today’s mortgage refinance rates: 20-year rates freefall back under 5% | May 24, 2022 - Fox Business
Today's mortgage refinance rates rise – May 11, 2022 Bankrate.com Trends in Mortgage Refinancing Activity Freddie Mac The Mortgage Refinance Rush Has Cooled, But HELOCs Can Unlock Housing Wealth Hawaii Business Magazine Can You Refinance a Reverse Mortgage? Investopedia Best cash-out refinance lenders of 2022 Fox Business Cash-Out Refinance vs. Home Equity Loan: What's the Difference, and Which One Should You Choose? Bob Vila How To Refinance A Second Mortgage | HEL, HELOC, Piggyback The Mortgage Reports Inheriting a House With a Home Equity Loan Investopedia Why Mortgage Borrowers Will Want to Avoid the Prepayment Penalty If You Plan to Move or Refinance NextAdvisor Today's Mortgage, Refinance Rates: May 11, 2022 | High Inflation Means Rates Will Likely Stay Elevated Business Insider Greystone Refinances South Florida Affordable Housing With $20M Loan Commercial Observer What is mortgage recasting and why should you do it? Fox Business What is a 7/1 adjustable-rate mortgage (ARM)? Bankrate.com Refinance Calculator Bankrate.com Today’s mortgage refinance rates: Steady shorter terms offer best savings chances | March 17, 2022 Fox Business Today's refi rates move higher – May 9, 2022 Bankrate.com Should you refinance your mortgage now? Consider these factors The Seattle Times Today's Mortgage, Refinance Rates: May 13, 2022 | Rates Increase for the Second Week in a Row Business Insider 3.8 million homeowners would still benefit from refinancing amid rise in mortgage rates, says Black Knight Fox Business Jumbo Loan Refinance Guide | 2022 Rates and Guidelines The Mortgage Reports Still time to lock in a lower rate: Today's 30-year mortgage refinance rates fall | Feb. 9, 2022 Fox Business How to refinance your mortgage, a step-by-step guide The Washington Post Survey finds 74% of homeowners haven’t refinanced despite historically low mortgage rates Bankrate.com 3 Reasons to Refinance Your Mortgage Despite Rising Rates The Motley Fool After Losing Her Home in a Fire, This Teacher Needed a Fresh Start. A Mortgage Refinance Helped Her Do It NextAdvisor Should You Refinance Your Mortgage in 2022? The Motley Fool Plunging Mortgage Rates Mean Refinancing Is Back on the Table for 2 Million Borrowers The Motley Fool Mortgage and real estate news this week: Affordability squeeze tightens, and refinancing must-knows Bankrate.com VA Loan Refinance Options | 2022 VA IRRRL and Cash-Out The Mortgage Reports 15 of the best mortgage refinance companies for 2021 Fox Business Cash-out refinance vs. no-cash-out | What's the difference? The Mortgage Reports Home Mortgage Refinancing Disparities During the COVID-19 Pandemic: Insights for Delaware, New Jersey, and Pennsylvania Philadelphia Fed Mortgage Refinance As An Inflation Hedge Surfky.com What Is a Mortgage Refinance? The Motley Fool Can You Refinance A VA Loan? Zing! Blog by Quicken Loans Mortgage refinance: Everything you need to know Fox Business Best mortgage refinance lenders in 2022 Bankrate.com What Is A CEMA Loan? A Quick Guide For NY Homeowners Zing! Blog by Quicken Loans Unemployed and unable to refinance Marketplace Which Type Of Mortgage Refinance Is Best? Zing! Blog by Quicken Loans
|