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what is an interest only mortgage Informational
- How can borrowers ensure they have clear title to the property?
- What are the potential uses of the extra cash flow during the interest-only period? Should the savings from lower initial payments be invested, and if so, how?
- What happens to a mortgage obligation, including an interest-only mortgage, when a borrower files for bankruptcy?
- How can borrowers accurately estimate the costs and potential returns of such projects?
- What are the disclosure requirements for such issues? How do interest-only mortgages interact with local regulations regarding signage or home-based businesses operated from residential properties?
- How do interest-only mortgages interact with other forms of financing in property development? What are the risks of using interest-only mortgages for speculative property ventures?
- What are the long-term financial implications of an interest-only mortgage? How do interest-only mortgages compare to adjustable-rate mortgages (ARMs)?
- Understanding Interest-Only Mortgages
- What are the risks of not having an adequate emergency fund when facing potential payment increases? How does the psychological effect of a large outstanding principal balance on an interest-only mortgage compare to the feeling of gradually reducing principal with a traditional mortgage?
- Are interest-only options typically available for co-op purchases? What are the potential risks of using an interest-only mortgage to finance a property with a short leasehold tenure?
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