Interest Only Payments
Usually, your mortgage payments go toward both your interest costs and your loan balance. Year after year, you keep up with interest charges and gradually eliminate the amount of debt owed.
The main difference with an interest-only loan is that you would only pay the interest on the loan, not the principal. This results in lower monthly payments for a fixed period. However, you’re required to pay off the full loan either as a lump sum or with higher monthly payments that include principal and interest.
Should you Get an Interest-Only Mortgage?
Interest-only mortgages are riskier than traditional mortgages because you don’t build any equity in your home.
Another additional risk of interest-only mortgages is that are generally offered only by alternative lenders, such as private mortgage providers or trust companies.
How to set Interest Only in your App
Inside the purchase calculator, tap on the payment option to access to the loan screen, then tap on the option menu in the top tight corner select loan type and finally pick “Interest Only”.
Click on the video to watch the Tutorial
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