13:24 18 April 2013
Mortgage loans have been slowly shifting over the past few years. At one time, interest-only mortgage loans were very popular but are being phased out as demand increases for loan payments which cover the principle and the interest.
The interest-only mortgage loans essentially only credited payments towards the interest on the loan, leaving a sizeable chunk to be paid as soon as the interest-only payment terms were completed. If the payment was not made in full, the property was at risk of repossession.
The mortgage loans currently that are gaining in popularity offer customers the following benefits:
The demand for interest-only loans is definitely waning. There are still certain buyers who are financially able to choose those types of mortgage loans with utmost certainty that they will be able to purchase outright at the end of the term, but it seems the majority of people prefer a more stable payment plan.
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