Here are some ideas for choosing fixed rate versus interest only home loans

1. Fixed Rate Mortgages versus
Interest Only Home Loans

2. Mortgages
•Today, there are enormous types of mortgages available in the marketplace
for homeowners and home buyers.
• Before going for a home loan, it is important to know about the type of
home loans, interest rates, repayment options and lot more.
• However, before choosing the home loan, it is important to know the merits
and demerits of fixed rate mortgages versus interest only mortgages.

3. Monthly Payments
The major reason for
choosing a fixed rate
mortgage is the
predictable monthly
payments because the
interest rate will never
move up or down due to
market fluctuations.

4. Initial Payment

5. Initial Payment
 The initial payment for fixed rate mortgages will be typically higher when compared
to interest only mortgages.
 The repayment values for the fixed rate mortgages will never fluctuate; hence the
buyers will never get benefit from future declining rates.

6. Tax Deductible
The Interest Only Mortgage is 100% Tax Deductible

7. Advantages of FRM
The main advantage
with fixed rate loans is
its predictability,
because it allows you to
know the exact
repayment value for
the entire term of a
loan.

8. Disadvantages of FRM
 The interest rate for fixed rate mortgages is usually higher
than interest only loans.
 Also, if you choose a low down payment loan, then you
need to pay more for mortgage insurance, an added
monthly expense that helps mortgage lenders from risk of
loss.

9. Conclusion
Finally, it is important to consult with an
independent mortgage broker before going
for a home loan to benefit from the best
deal.

10. Thank You,
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