Interest-Only(I-O) mortgages have proliferated in recent years and while some consumers understand how these loans really work, confusion reigns among most. Why? Because the term “Interest-Only” doesn’t refer to an actual TYPE of loan, it refers merely to a PAYMENT OPTION that can be associated with all TYPES of loans.

For example, today you can obtain Interest-Only payments on a 30-year fixed-rate mortgage. You can also obtain Interest-Only payments on a 1-month Adjustable Rate Mortgage. Both of these loans are “Interest-Only” but without further description, you might think they were one and the same!

As a result, when you hear the phrase “Interest-Only” loan, it is only describing ONE feature about a loan when in fact, many factors must be understood. It's critical to take the time to understand these products as there are huge differences between various loans all known as "Interest-Only" as some are credible wealth-builders while others can be a consumer's worst nightmare.

This Blog Tutorial Series will explore types of I-O loans, how they really work and which ones have the right risk tolerance for your Primary Residence and for your Investment Properties. Never let the word “Interest-Only” sway you – investigate what that particular loan program really offers and use this Blog Series as your Guide.
Respectfully,

Benjamin A. Cohen
Founder
www.InvestRealEstate.com