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Loan Comparison: Interest Only Home Equity Loans Versus Balloon 2nd Mortgage

By Team iBizExpert On February 12, 2022 11:20 PM No Comments
What is a loan that only pays the interest? This is a loan where only the interest is paid back each month. The principal is not paid back. The loaned money may be paid back in 10, 15, or 20 years. By making payments on the principal, a borrower...

Danger of Deferred Interest Mortgages: Understanding the Risks of Negative Amortization Home Loans

By Team iBizExpert On February 10, 2022 04:15 AM No Comments
Negative amortisation, or "neg am," happens when a mortgage's minimum payment is less than the monthly interest. This means that the loan balance goes up instead of down. Most of the time, interest-only loans don't add to the amount owed on a...

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