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Interest-Only Mortgages: Pros and Cons An interest-only mortgage can sound appealing to a potential homebuyer because it is a mortgage loan that requires that you pay only interest — no ...
Here are some pros and cons: Pros of interest-only mortgages. You get more house for your money. You can enjoy a larger home for less money while you save up for a larger mortgage.
Learn more: All about interest-only mortgages. Piggyback loans. A piggyback loan, also referred to as an 80/10/10 loan, involves two loans: one for 80 percent of the home price and another for 10 ...
Adjustable-rate mortgage pros and cons. ... Keep in mind: Your monthly payments are guaranteed to go up if you opt for an interest-only ARM. With this type of loan, you'll pay only interest for a ...
Cons of a blanket mortgage. More expensive closing costs: While you only have to pay closing costs once, a blanket mortgage’s closing costs are often higher than a single mortgage’s closing costs.
Along with these common loan terms, there are three main types of ARMs: hybrid, interest-only and payment-option. Hybrid ARM A hybrid ARM is the traditional adjustable-rate mortgage.
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