the interest only home loan option, you can obtain a mortgage
with lower payments. Many borrowers cannot find a home in
their price range with a fixed interest home loan. But
with an interest only home loan you can increase your purchasing
power. Additionally, an interest only home loan typically
has a five or ten year term, after which the home loan has a
repayment term that is a third shorter. There are
many options to choose from with interest only home loans:
interest only ARM's, Interest Only Jumbo Loans, and
Interest Only Home Equity Loans.
Mortgage vs. Interest Only Mortgage Calculator
Also, any amount
you pay each month that exceeds your interest only payment will
apply toward principal. A popular interest only mortgage
is a Libor Mortgage Loan.