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Benefits of Interest Only Mortgage Loans |
 Mortgage - What are the Benefits of An Interest Only Mortgage Home Loan.
Whether you do a cash-out refinance or take out a home equity loan or line of credit, which may be less expensive, preserving your cash flow is an important thing to consider. Paying only the interest will save you something each month, but perhaps not as much as you expect.
That's because in the beginning of a mortgage home loan, just a small percentage of your monthly payment goes toward paying down the home loan balance. That shifts over during the next 10 to 12 years ( 30-year loan), where you start to pay almost equal amounts of principal and interest (tax write-off begins to decrease). In the latter stages of your loan, you'll pay very little interest, because your payment will almost entirely go toward paying off the balance of the loan.
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