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Interest-only mortgages work very well as you know that you are only making interest amounts, which means you have lower monthly payments.\u00a0<\/p>
This helps from a cash flow perspective as the principal amount that you otherwise pay on a standard loan could be used for multiple reasons.\u00a0<\/p>
The principal balance of the loan will never decrease in an interest-only loan. However, you are free of those extra few hundred dollars a month that you can allocate somewhere else and still get to live in your own home.<\/p>
\u00a0If you are not planning to live in the house for long, the interest-only mortgage could make better sense as you would be selling the house in a few years and pay off the principal amount once the house is sold.\u00a0<\/p>
That way you save a lot of money by excluding the principal amount payment.<\/p>
Apart from that, the benefit of getting interest-only loans is that the interest rates are a little bit lower compared to any other conventional or FHA mortgages.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t