Connect with us

Hi, what are you looking for?

Money Management

Interest Only Mortgage 101


 

Personal Finance Terms 101: Interest-Only Mortgage

When it comes time for example to buy a house, there can be many terms that are thrown out at you that you may have never heard before. This can get a little bit scary and overwhelming but where here to simplify these terms for you. So, once you understand what a mortgage is the next step is to understand and Interest-only mortgage.

So, what is an interest only mortgage? Well, it’s a type of mortgage in which the mortgagor is only required to pay off the interest that arises from the principal that is borrowed. Because only the interest is being paid off, the interest payments remain fairly constant throughout the term of the mortgage.

However, interest-only mortgages do not last forever, meaning that the mortgagor will need to pay off the principal of the loan eventually. For example, interest-only mortgages can be useful for first-time homebuyers because it allows young people to defer large payments until their incomes grow. For more on interest-nly mortgages check out the video above.

https://www.casho.la/wp-admin/options-general.php?page=ad-inserter.php&start=1#tab-4

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...