INTEREST-ONLY  LOANS In the old days, commercial lenders such as moirtgage companies, banks and savings and loans only offered one type of mortgage, one that was amortized over 30 years and completely paid off by the end of the 30 year term. If you wanted lower payments by paying only interest and no principal, you had to go to a private lender, most often the seller. Now, all of that has changed and many lenders offer interest-only loans as a way to make home ownership more affordable. Interest-only loans are just what the name implies. You pay only interest, no principal  and so at the end of the loan term, you owe exactly what you borrowed originally. If you intend to keep a property for only a short period of time, or you really need the lower payments and ideally expect your income to go up in the future, then interest-only loans can be an aexcellent way to get started owning property, but they're not for everybody. If you are conservative, you are planning to hold the property long term  and want to know that your property will be paid off, then you should stick to an amortized loan instead. Your monthly payments will be higher, but you will not owe anything at the end of the loan term. In many cases, you need a better credit rating to get an interest-only loan, because the lender is taking more of a chance. Your loan agent or mortgage broker should be able to explain this to you in more detail. MORTGAGE MAGIC HOME PAGE     CONTRACT WIZARD HOME PAGE    TAX SALE RICHES HOME PAGE