What is Interest only Mortgage

An Interest Only Mortgage is a type of Mortgage where you only pay back the accrued interest and no payments are made against the principal. There are many reasons why people choose to take out an interest only mortgage, they may have limited resources, they may be buying a second property, they may be using the mortgage as a wealth building technique. Whatever the reason you should always be cautious and have realistic expectations on the outcome of a interest only mortgage.

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