http://www.firstempiremortgage.com/interest-only-mortgages.html Interest only mortgages are the best options for many consumers. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 Are interest only mortgages right for you? There's only one way to find out. Interest only mortgages - only your best interests in mind To understand the concept of interest only mortgages, you must first understand the basis of a mortgage in general. It is a loan that a bank provides you in order to buy a home or property of any kind. This loan comes with an interest rate (for more information on current rates, and how they impact your situation, please see the latest charts, as well as the calculators on our site). Henceforth, each of your monthly payments involves part of the loan itself (called the "premium") and a chunk of interest. You end up paying a lot of interest over the course of your loan, but there is not a lot that you can do about it, as it is what allows banks to fund all the various types of mortgages that they offer. More about interest only mortgages One method that many consumers are looking at, however, is an interest only mortgage. With this type of loan, you defer all payments of the premium until after the interest is completely paid off. Since the premium comprises the bulk of the mortgage,interest only mortgages mean lower monthly payments to start off. This is a great method of securing a home loan at an affordable monthly rate, but like so many things in life, interest only mortgages can come at a hard price if you do not enjoy them responsibly. On the upside, interest only mortgages allow you to defer the bulk of your payments. If you take out the standard 30-year loan, for example, the first 15 years of it may be substantially less expensive. If you anticipate maturation of your investments or income over that time period, but do not have ample cash on hand now, this option could pay tremendous dividends for you. Fiscal responsibility is something many consumers struggle with, especially on such a large and vitally important scale. Be sure to know the risks involved and consult with a mortgage professional before applying for such a loan. The potential is great, but so is the opportunity for failure. This is why we ask people to carefully consider all the angles before applying for mortgages. What do you now think of interest only home mortgages? For more information on these, and other specialized programs such as reverse mortgages, continue to explore the information and resources provided by firstempiremortgage.com. When you are ready, and would like to speak to a trained expert, contact us using the free form above. It's easy, secure, and serves as your gateway to a world savings. Sat, 26 Jul 2008 15:00:00 EDT