The seven-year, interest-only loan
was originated by Prudential, and carries a 7.
Since the interest-only loan
includes the option of paying lump sums of principal at the owner's discretion, it is popular among those with fluctuating incomes and those receiving bulk bonus payments.
Like most banks that intend to continue to offer interest-only loans
, the bank has reviewed its underwriting requirements to qualify for an interest-only loan
to ensure the borrower has the ability to repay the loan once the interest-only period has expired.
WHEN the pressures begin to build on balancing the household budget, does it make sense to use the mortgage as a safety valve by switching to an interest-only loan
to cut monthly repayments?
The financing was structured to be a 7-year interest-only loan
and was funded to 59% of value.
The self-employed, contract workers and those receiving substantial bonuses can choose to minimise their regular monthly payments with an interest-only loan
and use 'peaks' of higher income to make ad hoc capital repayments.
When Lawrence Ragland was looking to expand his real estate holdings, he used funds he obtained from a cash-out option on a five-year interest-only loan
But the interest-only loan
, which stretches 35 years, fit her family's situation.
He said some borrowers were relying on interest rates peaking next year and then falling, and planned to have an interest-only loan
for just two years before switching to a repayment one, while others were hoping their financial position would be better in two years' time.
Other popular loans included the interest-only loan
(25 percent), prime adjustable loan (23 percent), the hybrid adjustable (15 percent), and the non prime loan (8 percent).
Spinner and David Zlotnick of Meridian's New York office secured a 12-month, interest-only loan
floating at Prime + 6%.
This can happen if the lender or intermediary wrongly sets up the loan as interest-only when it should have been a repayment loan or if the investment planned to repay the interest-only loan
is not set up.