Home > Helpful Resources > Interest-only Home Equity Loans

Interest-only Home Equity Loans

Interest-only home equity loans are the best mortgage plan option when you need to tap into the investment you have made in your home. You can borrow a loan against the equity you hold in your home and use the money for paying existing debts, student loans, tuition fees, buying a vehicle, and much more. And, with interest-only home equity loans, you pay only the interest each month for the first few years, (for instance, 10 years or 15 years).

However, after the initial interest-only years, you are due to pay the entire principal and the interest as fixed monthly payments spread over the remaining mortgage term. Here, there is a certain level of risk involved. Even after paying the interest each month for several years, you still owe the same principal amount of the loan which you need to pay within the remaining mortgage term, which can increase your monthly payments.

Another risk factor involved is that interest rates might rise, which would then increase your monthly payments. Hence, if you wish to spread your loan over a longer term, an interest-only home equity loan may not be the best option for you.

However, interest-only home equity loans do have their benefits if they suits your requirement and future plans. The various benefits include the following:


  • They increase the cash flow which gives you a greater purchasing power.

  • They are highly flexible and allow you to pay only the interest as your monthly payments, allowing you to pay the principal whenever you want.

  • Also, as an equity loan, they may reduce your tax liability. However, you need to consult your tax advisor about this option.

Interest-only home equity loans are a great way to make your home work for you. You can find a number of lenders offering different rate plans. Interest rates depend upon the area or state in which you are applying for the loan. These are subject to change any time. You must also be aware of any hidden fees that the lender might incorporate into the loan terms and conditions before you accept a particular plan.

If you have additional questions regarding your financial options, please call us, and we'd be happy to recommend a tax professional to you. Our web site http://www.mortgageease.com should answer most of your questions, but your personal consultant is only a phone call away: Feel free to call us at 301-528-0022.

Quick Application: Give Answers, Get Pre-Qualified

Ready to get started? Simply complete the form below and one of MortgageEase's expert loan counselors will contact you within 1 hour to complete your paperwork and start the Pre-Qualification process.

First Name:
 Last Name:
 Email Address:

(ie. name@website.com)
Home Phone:

(ie. xxx-xxx-xxxx) 		Work Phone:

(ie. xxx-xxx-xxxx) 		Loan Amount :

(ie. xxx,xxx.xx)


Privacy and Security Guaranteed

Complete a full application and we'll pre-qualify you in one hour
or
Prefer to talk to a live person? Our friendly, knowledgeable loan consultants are waiting to take your
application over the phone! Call 301-528-0022 to apply.