Interest Only Mortgages
Self explanatory in name; The Interest Only Mortgage means your monthly payments only pay the interest charges on your loan – you’re not actually reducing the loan itself! The upside of the Interest Only Mortgage is that because you are only paying off the interest and not the loan itself, your monthly payments will be lower. The downside is that you are responsible to pay back the loan in full and it is very important you arrange some other way to repay the loan at the end of the term.
