What exactly is an interest-merely financial?
An attraction-merely financial try a loan to have a house that allows you to settle only the attract on the borrowing per month, and never the capital.
It means their monthly installments never pay back any of the mortgage – rather, you only pay a full matter right back at the end of the fresh home loan identity in a single lump sum payment.
Exactly how attract-only mortgage loans work
That is unlike a cost financial, where you pay back each other notice and you can money every month.