Definitions:
Definitions Principal: The amount of money that you owe the lender. Interest: The amount of money that you pay the lender in exchange for borrowing the money.
What is an interest only mortgage?:
What is an interest only mortgage? it is a mortgage that requires that you only pay the interest each month Why would you want an interest only mortgage? THE MAIN REASON: You own a rental property (that you have a mortgage on) and you want to just pay your interest and divert the principal payments to paying down other debt that you can’t write off!
How can you borrow money at interest only?:
How can you borrow money at interest only? 2 MAIN WAYS: HELOC (Home Equity Line of Credit): Basically it is a giant credit card that is secured against your home. Private mortgage: When a private (or individual) investor lends the funds, they often will allow interest only payments.
Thank you!:
Thank you! Trevor Hickey, B.A. Mortgage Associate Concord Mortgage Group Ltd. #107 - 1905 Centre Street NW Calgary, Alberta T2E 2S7 Bus: (403) 290-1990 Cell: (403) 860-8738 Fax: 1-888-587-1426 Email: trevor@concordmortgage.ca Website: www.mortgagebrokercalgary.info