Balloon mortgages try risky for the buyer and financial, thus seeking a lender that gives you can be difficult.

ten. Interest-merely mortgage

With an interest-just financial, your borrow money since you carry out that have any other type from financial, therefore create monthly obligations.

Interest-simply mortgage terms are usually a decade otherwise quicker. If identity concludes, you can re-finance to the some other attract-simply financial otherwise into the a normal mortgage that needs that reduce the main.

Some individuals in this way brand of home loan into the low monthly repayments. However, desire-just mortgages routinely have varying interest levels, so your rates often fluctuate yearly.