Rate State Explains Interest Only Mortgages in Their Latest Article
Seattle, WA (PRWEB) July 06, 2013 -- Are interest-only mortgages for everyone? No, says Rate State in their latest article. They reveal what exactly this term means and for who it is an option in their article titled “What Is An Interest Only Mortgage?” Rate State explains that, for some people, interest-only loans can help buy more with less, at least in the short term. They also explain that those that blindly jump into these loans often face trouble.
The article elaborates very succinctly how these loans function: “Interest-only loans are a type of loan that have gained popularity in the last 10-15 years. Interest-only loans work by allowing you to pay only the interest of a mortgage for the first few years and then you can either refinance or pay interest and principal payments that are slightly higher than usual, like a normal mortgage.”
Rate State clarifies that there are certain people that interest-only mortgages are not good for. Their article explains that people with steady income that will not grow very much should not get interest-only mortgages. Although such a person would be able to pay the payments needed on the mortgage for the first few years they would run into trouble when the payment amount rises to include principal payments.
This and other great articles are available on Rate State's website, along with their complimentary loan comparison tool.
About Rate State
Rate State helps consumers compare today’s mortgage rates through their online comparison tool to ensure they are getting the best rate for their home mortgage or refinance before making their next purchase. They provide consumers with access to the information they need in order to make a decision potentially saving thousands of dollars over the term of their next home loan.
John Danton, Rate State, http://www.ratestate.com/, 360-631-9441, [email protected]
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