Interest-Only Loans

Interest-only loans are a type of financing in which the borrower is required to make payments solely towards the accrued interest on the principal balance for a predetermined period, which usually ranges from five to 10 years. This payment structure enables borrowers to enjoy lower monthly payments in the initial stages of the loan term. However, it is important to note that at the conclusion of this period, the borrower must either repay the full principal amount or explore options such as refinancing the loan to continue managing the debt effectively. This flexibility in payment options provides borrowers with the opportunity to tailor their financial strategy to best suit their current circumstances and future goals.