If you only have to pay the interest portion of your home loan and not the principal, wouldn't you be happier as a borrower? I would certainly be because in such a case our EMI would fall significantly. Such a scheme has been introduced by the Standard Chartered Bank as an interest-only home loan product. I will tell you interest only mortgage meaning. In an interest only mortgage, the borrower must pay only monthly interest during the interest-only period.
NoBroker Home Loans
Confused comparing banks? Get guaranteed lowest interest rates starting at 8.4%, doorstep assistance & fastest sanction in 7 days.
Lowest Interest Rate Guaranteed
Max Funding
What is Interest-Only Mortgage and how is it different from other types of loans?
When you take out a loan, the lender decides how much of the principal and interest you will pay back each month. they partition your reimbursement to EMIS. When you take out an interest-only loan, on the other hand, your bank or other financial institution will ask you to pay back the loan first, and you can choose how long you want to do so. Let's say you decide to pay the interest first, and the landlord gives you EMIs for the rest of the space. You can later cover the chief sum.
Advantages of an interest only mortgage
Low options for repayment. Everyone wants a loan with low-interest rates. Since you first need to take care of only the interest in an interest-just advance, this credit instrument is great for holding your EMI sum in line.
If you need a lot of money but can't afford to pay a lot in interest, an interest-only loan is a blessing. You can borrow a lot of money with this loan and only pay back the interest at first.
Disadvantages of an interest only mortgage
It is quite expensive. Keep in mind that an interest-only loan has a higher interest rate because lenders give you the option to pay only the interest cost.
The general reimbursement sum increments in the event that you decide to go for an interest-possibly credit, the reimbursement sum increments assuming you choose to clear the chief sum in parts and not in full. This is on the grounds that banks re-energize revenue assuming that you pick a halfway installment choice
This is interest only mortgage meaning.
Attain peace of mind by knowing all the details about your loan using NoBroker Home Loan Eligibility Calculator. Read More: What is Mortgage by Conditional Sale? Meaning and Example Can A Mortgaged Property Be Gifted? What is a Registered Mortgage? Meaning and Concept How to check mortgages on property in India online?Your Feedback Matters! How was this Answer?
NoBroker Home Loans
✔
Max Funding✔
Lowest Interest Rates✔
Quick Sanction✔
Doorstep Assistance✔
No Hidden Charges
Lowest Interest Rate
Apply for Home Loan
Apply for Home Loan
Compare Loans
Check Eligibility
What is Interest-Only Mortgage?
Taani
84 Views
1
2 Year
2023-04-19T12:54:11+00:00 2023-04-19T13:14:52+00:00Comment
Share