Can I Change the Terms of My Interest-Only Mortgage Repayment?
The interest-only home loan provides a few unique features. It’s one mortgage product that helps homebuyers become homeowners. In addition, it’s a tool that benefits investors. This home loan allows homebuyers and investors to invoke two interest-only periods of five-year increments each. Once the periods near their expiration date, the mortgage-holder must take action. Otherwise, the home loan rolls into a principal mortgage that sees a jump in the monthly repayments and interest rates.
One feature is the ability to change interest-only mortgage terms. However, the property owner must take a proactive stance. You can elect to convert the home loan into a principal mortgage. In addition, the property owner can sell the home and pay off the mortgage with the proceeds. In ideal situations, this nets a profit that helps the owner purchase another property and obtain better mortgage terms.
Conventional mortgages still exist. The lending market has also evolved. An array of mortgage products exist for most financial circumstances. If you decide to obtain an interest-only home loan, understand the terms from the beginning. It requires additional financial savviness and a proactive approach.
Our Mortgage House loan specialists walk applicants through the details. Plus, you will find the information in the welcome packet. You can achieve your financial goals with an interest-only mortgage, especially if you plan to invest in the Australian housing market.
Change Interest-Only Mortgage Terms Conclusion
Homeowners can change interest-only mortgage terms but limits exist. Sometimes it’s best to convert to a principal-based mortgage. To explore your options, contact our Mortgage House loan specialists.