If, you are looking to get an optional interest only mortgage do you understand what they are and how they work? Interest only mortgages are loans that are secured by the purchase of a home. When you first make payments on an interest only mortgage you are purely making payments on the interest which is not related to the actual principal of the mortgage. This can greatly reduce the number of payments on the home you have purchased.
The interest only mortgage is only a temporary solution to getting lower rates. The most popular interest only mortgages do not allow the interest only payments to go forever at some point the principal will need to be paid. There are a couple of different types of interest only mortgages the 30-year loan and the 40-year loan. On a standard 30 year option the first 60 months is the limit to make interest only payments. On the 40 year option, the first 120 months are available to the interest only option
Interest only mortgage is there to benefit the first time home buyer. Many new home owners are in a position during the first few years of establishing security. With this option for those home owners to make those interest only options then it is a good Idea to exercise it because it can reduce your monthly payment by a couple of hundred dollars a month.
This is great for peoples income are based on commissions or bonuses which give them better options to save more money when those interest payment options come to an end. So if you think this type of mortgage is right for you to come and talk to your local mortgage broker and see what kind of money you can save by using this type of mortgage.