You're Now Reading:
Interest-only Loans
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Interest-only Loans
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Interest-only Loans
Mortgage Calculator
Mortgage Rates
Home Buying Tips
Home Selling Tips
About Mortgages
Mortgage Calculator
Mortgage Rates
Interest-only Loans 2017-09-25T18:22:39+00:00

The interest-only home loan was widely used during the housing boom of the early to mid 1990s. They were primarily used to lure in home buyers who could not otherwise afford their monthly payments. But this type of loan has some major drawbacks, as well. As the name implies, interest only home loans are loans that include an option of only paying the interest every month.

The principal balance of the loan is paid only when convenient. These loans usually have a fixed or adjustable mortgage rate. Since these loans are higher risk, they usually come with a higher interest rate, even though the payments are lower. The difference is you’re not paying the loan balance down unless you do it voluntarily.

These types of loans are best for short term loans or if you plan on moving within a few years. The risk here like all non-fixed rate loans is that you can’t predict the future and you might be stuck with a non-desirable loan while you wait for the real estate cycle to come back around to gain enough equity to either refinance or sell.

Other Types of Mortgages:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Loans

Government-backed Loans

Home Equity Loans and HELOCs

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
LOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at LoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates
Interest-only Loans 2017-09-25T18:22:39+00:00

The interest-only home loan was widely used during the housing boom of the early to mid 1990s. They were primarily used to lure in home buyers who could not otherwise afford their monthly payments. But this type of loan has some major drawbacks, as well. As the name implies, interest only home loans are loans that include an option of only paying the interest every month.

The principal balance of the loan is paid only when convenient. These loans usually have a fixed or adjustable mortgage rate. Since these loans are higher risk, they usually come with a higher interest rate, even though the payments are lower. The difference is you’re not paying the loan balance down unless you do it voluntarily.

These types of loans are best for short term loans or if you plan on moving within a few years. The risk here like all non-fixed rate loans is that you can’t predict the future and you might be stuck with a non-desirable loan while you wait for the real estate cycle to come back around to gain enough equity to either refinance or sell.

Other Types of Mortgages:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Loans

Government-backed Loans

Home Equity Loans and HELOCs

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
LOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at LoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Interest-only Loans 2017-09-25T18:22:39+00:00

The interest-only home loan was widely used during the housing boom of the early to mid 1990s. They were primarily used to lure in home buyers who could not otherwise afford their monthly payments. But this type of loan has some major drawbacks, as well. As the name implies, interest only home loans are loans that include an option of only paying the interest every month.

The principal balance of the loan is paid only when convenient. These loans usually have a fixed or adjustable mortgage rate. Since these loans are higher risk, they usually come with a higher interest rate, even though the payments are lower. The difference is you’re not paying the loan balance down unless you do it voluntarily.

These types of loans are best for short term loans or if you plan on moving within a few years. The risk here like all non-fixed rate loans is that you can’t predict the future and you might be stuck with a non-desirable loan while you wait for the real estate cycle to come back around to gain enough equity to either refinance or sell.

Other Types of Mortgages:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Loans

Government-backed Loans

Home Equity Loans and HELOCs

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
LOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.