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What is an interest-only home loan?

April 26, 2017home loan interest-only

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What is an interest-only home loan?

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With an interest-only mortgage, you can pay only the interest portion of your monthly payment for a specific period of time, usually 5 or 10 years. At the end of the interest-only period, your payments will be amortized over the remaining period of the loan. As a result, your payments after the interest-only period will be higher than they would be in a traditional regular amortizing loan.