Texas Interest Only Mortgage

A Texas interest only mortgage is where you only pay the interst on the loan and not any principal. This means your loan amount will never be reduced and at the end of the mortgage loan, you will still owe the same amount since you only paid the lender the interest.

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People who often use this type of mortgage are ones who want to minimize their monthly payments and pay down the principal on their own when they are able to. Others who opt for interest only loans are those who don't plan on staying in their homes too long and since the principal payment in the initial free years are minimal, it makes perfect sense not to pay down any principal on their loan.

A major drawback is if your home decreases in value, you may end up owing more money than the home is worth and may be forced to foreclose or end up working with a lender to short sale your home.

Interest only mortgages will higher rates than if you go with a normal traditional mortgage that involves paying back interest and principal on a monthly basis.

It is advised that you speak to a few mortgage professionals who can help you determine whether or not interest only mortgage in TX is a good avenue for your family and you. Our network of mortgage companies can save you time in searching for Texas mortgage brokers and lenders to contact.