For homeowners and people buying homes for sale, finding the right mortgage for them can be a bit difficult. While home mortgage lenders are offering a variety of mortgage plans that are catered to homeowners with different financial circumstances, it can still be a bit of a grind to find the best mortgage plan for you.

 

However, if you are a person who is asking why making the real estate investment of buying a home should tie up your other financial interests, then you may be interested in obtaining an interest only mortgage. If you are a homebuyer who understands that while they can make a small profit from capitalizing on real estate appreciation by selling their home after a couple of years, they can make even more money through shrewd investments in business ventures and stocks, then an interest only mortgage will definitely interest you! An interest only mortgage is the only type of mortgage loan that has regular monthly payments that only apply towards the mortgage loan interest rate. Interest only mortgage rates also offer a great deal of flexibility, as they can be obtained as either a fixed rate interest only mortgage or an adjustable rate interest only mortgage.

 

A fixed rate interest only mortgage refers to a mortgage in which the interest rates are set at the inception of the mortgage. An adjustable rate interest only mortgage is a mortgage in which the interest rates will fluctuate with current market trends. Both of these interest only mortgages have their benefits and drawbacks. Typically, an interest only mortgage will be part of a larger mortgage. It is common for homeowners to obtain a mortgage that includes a five or ten year interest only period. After this initial interest only period has past, the homeowner will pay off the remaining balance of the loan under the terms of their mortgage. One of the benefits of this arrangement is that a homeowner is able to make early repayments on their mortgage at a substantially lower price during the interest only mortgage period than they can in the later parts of their mortgage.

 

Due to this, homeowners are able to use their finances to invest in business ventures or stocks that will be able to create a profit that they can use to pay off their mortgage. Additionally, an interest only mortgage will benefit homeowners who are waiting to sell their home while buying a new home. With an interest only mortgage, these homeowners will be able to use the profits from selling their home to pay off their new mortgage. While interest only mortgages can be beneficial in maximizing your Real Estate Investment, it is important to note that they have some disadvantages. Depending on the state that you live in, you may be required to pay property tax and purchase property insurance for their new home.