How does an interest-only mortgage loan work?

Answer Traditional mortgages have principal-plus-interest payments, which pay the accrued interest in full, then reduce the principal owed each month. In contrast, interest-only loans only pay off the acc... Read More »

Top Q&A For: How does an interest-only mortgage loan work

Why an Interest-Only Mortgage Loan Sounds Attractive?

In real estate today, it is common for people to purchase a new home with a mortgage loan. Mortgage loans can be structured in many ways, some of which appear more attractive than they are in the ... Read More »

Is an interest-only mortgage loan a smart move?

On One Hand: Recognized BenefitsInterest-only mortgages can offer many upfront benefits. Borrowers only pay on the interest of a loan early on, providing a window of opportunity to save so they can... Read More »

What Is a Reverse Mortgage Line of Credit Interest-Only Loan?

Reverse, line-of-credit and interest-only mortgages are three separate kinds of mortgages. However, they are not mutually exclusive--a mortgage can very well be all three at once.

Why Does Principle & Interest Vary Over the Period of a Mortgage Loan?

When you take out a mortgage, you are borrowing money from a lender. You must then make monthly payments to the lender. A portion of you monthly monthly mortgage payment goes toward paying off your... Read More »