Life... Health... Reviews...

Thursday, February 21, 2008

Interest only mortgages

One way that a lot of people are managing to save some money is to only pay the interest on their mortgages. A lot of people did this when interests rates were relatively, which may have been a good strategy at the time.

Research shows that the number of interest only mortgages taken out in 2007 had risen to 49 percent, compared with 42 percent in 2006. However, the percentage dropped to 40 percent this past January.

Now, some experts believe that it's time to reconsider that thinking and method to saving a little money. Since interest rates are falling homeowners need to look into cutting the amount of money they owe on their mortgage.

It seems like that would be a good idea because it will allow homeowners to pay money toward their principle balance thereby decreasing the amount of time to paying off the mortgage and the amount owed on the Mortgage.
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