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  • Answer You - When Does An Interest Only Mortgage Make Sense?

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    In this loan type a borrower only pays the interest and not the principal.

    The monthly paym

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    Mortgage Basics

    A typical mortgage loan, such as a 30 year fixed loan, requires you to pay off your principal balance slowly over time. Each month your monthly payment consists in part of an interest payment and in part a payment towards the principal of the loan. Slowly over time you pay the loan off. In 30 years the loan will be entirely paid off.

    Interest Only Mortgages

    An interest only mortgage is a very popular option these days with borrowers.

    In this loan type a borrower only pays the interest and not the principal.

    The monthly paym

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    balance slowly over time. Each month your monthly payment consists in part of an interest payment and in part a payment towards the principal of the loan. Slowly over time you pay the loan off. In 30 years the loan will be entirely paid off.

    Interest Only Mortgages

    An interest only mortgage is a very popular option these days with borrowers.

    In this loan type a borrower only pays the interest and not the principal.

    The monthly paym

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    yment towards the principal of the loan. Slowly over time you pay the loan off. In 30 years the loan will be entirely paid off.

    Interest Only Mortgages

    An interest only mortgage is a very popular option these days with borrowers.

    In this loan type a borrower only pays the interest and not the principal.

    The monthly paym

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    Interest Only Mortgages

    An interest only mortgage is a very popular option these days with borrowers.

    In this loan type a borrower only pays the interest and not the principal.

    The monthly paym

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    borrowers.

    In this loan type a borrower only pays the interest and not the principal.

    The monthly payment is lower than on a comparable loan of the same size and interest rate. The principal balance of the loan will not increase or decrease. As long as interest only payments are made the loan size will remain the same.

    Loan Options

    There are many new interest only loan options.

    There is an interest only option on a 30 year fixed loan. It allows a borrower to make interest only payments for the first 10 years of the mortgage. The interest

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