Home Loans
How Interest-Only Mortgage Loans Work
(presented by www.refinance-refinance.net - mortgage lenders)
By Carrie Reeder
In a traditional mortgage, a borrower pays a fully-amortized monthly payment. This means that they are paying the exact amount necessary in order to pay their mortgage off in full by the end of their term. Interest-only mortgage loans differ in that they do not require fully-amortized payments at the beginning of the mortgage term. This article explains how interest-only mortgage loans work:
For a period of time established by your lender — usually a few years — interest-only mortgages only require that a borrower makes monthly payments on the interest accrued on their loan. This means that the borrower is not required to pay any amount on the principal. This makes for monthly payments that are considerably lower than fully-amortized payments.
Conversion to a Traditional Mortgage
After the term of interest-only payments, the loan converts to a traditional mortgage. This means that you will be responsible for fully-amortized payments for the remainder of the mortgage
===========================================
For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
===========================================
Technorati Tags: mortgage refinance, refinance, home refinance, bad credit refinance, bad credit mortgage refinance, loan refinance, home loan mortgage refinance, mortgage refinance information, refinance mortgage, home equity loan, home equity loans, equity loans, debt consolidation, debt consolidation loans, debt consolidation loan, consolidation loans, credit card debt consolidation, credit card consolidation
