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    short-term. Interest-only loans are an excellent financial tool if you understand the risks associated with any Adjustable Rate Mortgage.

    What Are the Risks of Interest-Only Mortgage Refinancing?

    There are a number of risks associated with interest-only mortgage refinancing. Many homeowners never fully understand the interest only nature of their loans and

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    If you are considering mortgage refinancing but need the lowest payment amount possible, an interest-only mortgage could be your answer. When used correctly, interest only mortgages are an excellent tool for meeting a short-term financial need. Here are the basics of interest-only mortgage refinancing to help you decide if this loan is right for you.

    How Does Interest Only Mortgage Refinancing Work?

    Interest-only mortgages have initial payments based only on the amount of interest due for a particular month. Because there is no loan principle included these loans have very low monthly payments during the interest only period. Interest-only mortgages are not interest-only forever; the lender is eventually going to want their money back.

    When the interest-only period ends the lender will convert your mortgage into a standard Adjustable Rate Mortgage amortized for the remaining loan term. This means that if your loan was for 30 years with a 5 year interest only period, the full amount of your loan will be amortized for 25 years of repayment. This shorter amortization schedule means you will have a much higher payment amount when the lender converts your loan.

    When Does Interest Only Mortgage Refinancing Make Sense?

    Interest-only loans are ideal for homeowners in need of short term financing. By refinancing or selling your home at the end of the interest-only period you can avoid a potential budget crisis and save yourself some money for the short-term. Interest-only loans are an excellent financial tool if you understand the risks associated with any Adjustable Rate Mortgage.

    What Are the Risks of Interest-Only Mortgage Refinancing?

    There are a number of risks associated with interest-only mortgage refinancing. Many homeowners never fully understand the interest only nature of their loans and a

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    rest Only Mortgage Refinancing Work?

    Interest-only mortgages have initial payments based only on the amount of interest due for a particular month. Because there is no loan principle included these loans have very low monthly payments during the interest only period. Interest-only mortgages are not interest-only forever; the lender is eventually going to want their money back.

    When the interest-only period ends the lender will convert your mortgage into a standard Adjustable Rate Mortgage amortized for the remaining loan term. This means that if your loan was for 30 years with a 5 year interest only period, the full amount of your loan will be amortized for 25 years of repayment. This shorter amortization schedule means you will have a much higher payment amount when the lender converts your loan.

    When Does Interest Only Mortgage Refinancing Make Sense?

    Interest-only loans are ideal for homeowners in need of short term financing. By refinancing or selling your home at the end of the interest-only period you can avoid a potential budget crisis and save yourself some money for the short-term. Interest-only loans are an excellent financial tool if you understand the risks associated with any Adjustable Rate Mortgage.

    What Are the Risks of Interest-Only Mortgage Refinancing?

    There are a number of risks associated with interest-only mortgage refinancing. Many homeowners never fully understand the interest only nature of their loans and

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    When the interest-only period ends the lender will convert your mortgage into a standard Adjustable Rate Mortgage amortized for the remaining loan term. This means that if your loan was for 30 years with a 5 year interest only period, the full amount of your loan will be amortized for 25 years of repayment. This shorter amortization schedule means you will have a much higher payment amount when the lender converts your loan.

    When Does Interest Only Mortgage Refinancing Make Sense?

    Interest-only loans are ideal for homeowners in need of short term financing. By refinancing or selling your home at the end of the interest-only period you can avoid a potential budget crisis and save yourself some money for the short-term. Interest-only loans are an excellent financial tool if you understand the risks associated with any Adjustable Rate Mortgage.

    What Are the Risks of Interest-Only Mortgage Refinancing?

    There are a number of risks associated with interest-only mortgage refinancing. Many homeowners never fully understand the interest only nature of their loans and

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    will have a much higher payment amount when the lender converts your loan.

    When Does Interest Only Mortgage Refinancing Make Sense?

    Interest-only loans are ideal for homeowners in need of short term financing. By refinancing or selling your home at the end of the interest-only period you can avoid a potential budget crisis and save yourself some money for the short-term. Interest-only loans are an excellent financial tool if you understand the risks associated with any Adjustable Rate Mortgage.

    What Are the Risks of Interest-Only Mortgage Refinancing?

    There are a number of risks associated with interest-only mortgage refinancing. Many homeowners never fully understand the interest only nature of their loans and

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    short-term. Interest-only loans are an excellent financial tool if you understand the risks associated with any Adjustable Rate Mortgage.

    What Are the Risks of Interest-Only Mortgage Refinancing?

    There are a number of risks associated with interest-only mortgage refinancing. Many homeowners never fully understand the interest only nature of their loans and are shocked to see the payments go up when the lender re-amortizes their loan. Many of these homeowners can barely afford their interest-only payments and risk losing their homes to foreclosure when the payment becomes unmanageable. Adjustable Rate Mortgages carry the additional risk of rising payments when interest rates go up.

    You can learn more about your mortgage refinancing options, including common mistakes to avoid by registering for a free mortgage guidebook.

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