Can anyone give me some insight on interest only nortgages for investment properties, pros and cons. I already have a mortgage established on an investment property and my mortgage company contacted me about doing an interest only mortgage,HELP
- Great way to qualify for a loan you couldn’t normally obtain
- Lower payments now
- Higher payments later
- Pays down slower
- Usually no pre-payment penalty
- Money saved now can be used for other investments
Those are a few key aspects of interest-only loans to consider. I’ll let you decide what the pros and cons are, as it’s mostly a matter of opinion. ;D
Be careful as some interest only loans can turn into “neg AM” Loans.
Paying interest only is good for short term. Do not abuse this payment method as your principal balance may not move or even worse - go in reverse!