what happens if you only pay the interest on a mortgage?
and then dont have the money to pay off the balance at the end of the 25yrs, does the bank just take back your house? Im not planning on doing it, i just wonderd how it worked... I have an interest only mortgage, and just wanted to no what happens if you cant pay the full amount at the end of the 25yrs
Asked By: x caroline x - 9/1/2009
Best Answer - Chosen by Asker
There is no such thing as a 25 year interest only mortgage. Your Mortgage Consultant did a poor job explaining the product... More
Answered By: Carol - 9/3/2009
Additional Answers (7)
You will never get away with that. The lender will foreclose before allowing that. You would not own the house since you never paid a penny for it.
Answered By: sassy25 - 9/1/2009
lenders will not accept partial payments. they will forelcose in a few months.
Answered By: David Z - 9/1/2009
Unless you have an interest only loan you will be foreclosed on before then for non-payment. If you do have an interest only loan you have to pay off the balance at the end of 25 years. You can pay it with another loan though, refinancing it.
Answered By: Landlord - 9/1/2009
Nothing...It's as if you rented all 25 years and the balance will remain the same...
Answered By: Johnny A - 9/1/2009
Your lender will start foreclosing on you WELL before the 25 years is up. Probably start after about 6 months of partial payments received...or even sooner
Answered By: Ryan M - 9/1/2009
First thing i would do is check your note or any adjustable riders in your loan documents you signed. Interest only loans are not usually fixed for that long. It should also have a recast with in 10 years. That means if in 10 years you still have a high balance they will take the balance and amortize your loan over the... More
Answered By: Voyage Home Loans CA - 9/1/2009
Interest only mortgages are handy for those who cannot make principle and interest payments (for cash flow reasons), or those that can claim a tax deduction on a rental property for the interest payments... More
Answered By: potato_head30 - 9/1/2009
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