13:19 16 March 2013
If you’re searching for mortgages and are trying to choose the best one among the many different options, you’re not alone. Mortgage shopping is time consuming and can be overwhelming when considering all the slight variances of the mortgage plans.
There can be differences in term lengths, interest rates, subsequent interest rates, and payment plans. Interest only and repayment mortgages are the two main repayment options that we’ll investigate here:
Interest only mortgages:
When it comes to seeking interest only and repayment mortgages, the main consideration should be whether or not you want to have to deal with paying the principle at the end of the loan period.
If you do not have sufficient investments to handle a very large payment at the end of the loan term, it would be in your best interest to choose the repayment mortgage and pay a little more each month.
Either of these mortgages (the interest only and repayment mortgages) is a valid way to purchase a home, so which one you choose depends on the level of risk and investment you’re comfortable with.
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