Watch Related Videos
comments
The fixed interest-only mortgage presents home buyers with the opportunity to take advantage of an alternative loan program. An interest-only mortgage carries with it several benefits; however, there are definitely some risks and costs involved. If you are considering getting a fixed interest-only mortgage, here are a few things that you need to consider about the costs.
Closing Costs
With a fixed interest-only mortgage, you will have to pay all of the closing costs that are typically associated with a mortgage. You will have to pay for an appraisal, title insurance, origination fees, and more. However, you should not expect to pay much more for this type of loan as compared to any other type of mortgage as far as closing costs are concerned.
Monthly Costs
The big difference with interest-only mortgage loans is in the area of monthly costs. You will have a much lower cost per month than you would ordinarily. With an interest-only mortgage, you will only be paying the interest on the loan each month. Therefore, compared to other loans that require you to make payments on the principal, this is going to be quite a bit cheaper.
