Americans have a rare opportunity these days to obtain a home when both property values and mortgage rates are at historical lows. However, buying a home is no easy task and this huge financial step requires diligent planning and saving. For those longing to obtain a home when their budget is tight, interest only mortgage loans have been the bridge between coveting and owning.
Interest only mortgages allow borrowers to pay the lowest possible monthly amount for a fixed period of time because they only require the interest (not the principal amount) be paid for a predetermined contract period.
Finding Interest Only Mortgage Rates
Despite recent setbacks in the real estate industry, interest only loans are still popular with some borrowers. Although there appears to be less of them available, you can still find mortgage rates to finance the purchase of your dream house. A few ways to
explore interest only mortgage rates include:
- Ask Your Bank: If you already have an established and good relationship with your bank, speaking to their mortgage representative should be your first step in finding an affordable interest only mortgage rate. They can educate you on all the nuances of the loan term and may even offer you a lower mortgage rate as a customer incentive.
- Check the Web: Finding interest only mortgage rates can happen with a simple click of the button. The internet provides access to a wider host of lending options, many of which would not be available to you otherwise.
Finding an interest only mortgage is a bit more challenging these days due to stricter lending standards. However, they can be obtained if you put in the required time and research.
Your Guide to Interest Only Mortgages