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Mortgage insurances |
Welcome to Mortgage insurances,
subject Interest Only Mortgages
This is just what it says. You only pay interest, the principal is never reduced.
This is the grand daddy of all balloon mortgages and you taking a big risk that your house depreciates in value rather than the other way around.
You could very well have to come up with extra cash at closing.
The payments are much lower than on a normally amortized mortgage and if you have the discipline, it can be a useful financial planning tool.
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