“INTEREST ONLY LOANS”
An interest-only loan is a type of mortgage in which the borrower pays only the interest of the loan for a certain period, making the monthly mortgage payments lower for anywhere from five to ten years. Interest-only loans do have their drawbacks. Once the interest-only period ends, the borrower will begin paying both the interest and principal. Although interest-only loans can be beneficial for those who expect their income to be higher in the future or those who aren’t looking to own home for the long term, it also means that equity is not building up. Also, keep in mind that most loans are structured as an adjustable-rate mortgage, meaning if the interest rates rise, so will the monthly payment.
Whether you are buying or selling, venturing into the world of real estate can easily seem overwhelming. if you are confused about the various loans available today or uncertain about neighborhoods or home styles, arming yourself with the right agent and the appropriate information can make all the difference. We would be happy to serve as your real estate agent for your next transaction. Let’s get together soon to discuss your buying or listing plans.
“OUR SUCCESS HAS BEEN BUILT ONE SATISIFIED CUSTOMER AT A TIME.”
