It is generally a balloon and you have to pay if off in full or roll it over to a new loan. This is why interest only loans are a bad idea. You are building NO equity in your home, you are not paying down this loan at all. Might as well rent, because you’re [...]

I have an interest only mortgage – at present it is at a very low monthly rate – I am now in a position to repay this, but would it be worth investing it instead and where? it is for 50,000 £ and is over a ten year period. Do a Cost-benefit analysis- What if [...]

I’ve been hearing a lot about the "benefits" of interest only mortgages, but I’m not 100% convinced that this is the way to go. They say that people should get interest only loans and put the remainder of what you would normally pay (on the mortgage) in some type of investment. Should you use your [...]