Interest only loans

S

spock1

Guest
I've just agreed to buy a forestry plantation and have been looking around for a loan to cover it. I have been told about interest only mortgages but am a little suspicious of them. Does anybody know where I can get clear information on interest only mortgages. As I understand it, the principal remains as is whiel I pay the interest. At the end of the loan period I have to pay back the principal. I am told it is cheaper than a regular loan but how do they figure that out?
 
Mortgage brokers would probably be your best bet
Most mortgage providers do them

Using the following figures:
Amount borrowed 100,000
Interest Rate 3%
Term 20 years
Repayment method
Monthly Repayments 554.60
Amount borrowed is paid off in full

Interest only Method
Monthly Repayment 250
Original amount borrowed is to be repaid.

Beware your investment may not be enough to cover amount originally borrowed (Down turns can happen). Mortgage provider will sue for any shortfall
 
Re; interest only loans;
are interest only loans available for site purchases? And are mortgage rates of 3-4% available for site purchases:
pad
 
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