How to calculate interest only mortgage
Interest Only Mortgage Calculator
Looking for an interest only mortgage but don’t quite know where to turn?
Your at the right place, mortgage-calculator.uk.com is a site that aims to provide you with the best possible deal on your mortgage by comparing the best lenders in the market and delivering a result that will best suit your needs and your financial circumstances.
An Interest Only mortgage is a mortgage where you pay off the interest on the loan itself but not actually the capital, one thing you must bear in mind with this type of mortgage however is that you need to also pay off the capital, and this is what some people miss out on, although an interest only mortgage is cheaper than other types of mortgages, it still needs to be given some serious consideration, as at the end of the mortgage term you will be expected to repay the actual capital that was borrowed, how you fund this is your business.
Interest mortgages can be calculated on a daily basis, monthly or yearly. Daily is popular as it is possible to secure more money over a prolonged period of time. This is because every time
part of the mortgage is paid off either regularly or with an overpayment, interest is recalculated the following working day meaning interest is only paid on the amount owed by you. This makes it the most just method of billing mortgage interest as it decreases the mortgage total daily rather than having to wait for the end of the month or end of the year.
An Interest only mortgage will normally change into a repayment mortgage after a specified period, therefore they are beneficial to first time buyers searching to retain their expenditure down in the first year. Nevertheless due to the fact that the loan balance does not reduce throughout the term there is an uncertainty of descending into negative equity should there be a drop in house prices.
How Can I find the best interest only mortgages in the market?
You Can Use Our Interest Only mortgage calculator, once you have completed the online calculator tool it will return the best possible result for you and your financial circumstances giving you options from an number of interest only mortgage brokers.
Use Our Online Calculator today to find the best interest only mortgage for you!Source: mortgage-calculator.uk.com