Interest Only

What is a Interest Only loan?

A interest only loan is similar to a graduated payment loan but the interest of the loan is paid only for a set period of the loan and once the interest is paid the principal balance is left to pay over the rest of the loan.

Is a interest only loan better?

A interest only loan is generally is useful when the borrower expect to earn a higher income in the future.

What is the standard home loan?

Fixed rate loans are the most popular in the United States and a generally fixed for 15 and 30 years but outside the period they are fixed for is a lot lower.

What are the advantages of a interest only loan?

The start of the loan should be a lot lower while paying the interest period of the loan

What are the disadvantage of a variable rate loan?

If the borrower's income doesn't increase enough they can be left with a loan that they can't pay