Are interest-only mortgages offered in Alabama?

by dax.schneider , in category: Mortgage Loans , 9 months ago

Are interest-only mortgages offered in Alabama?

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2 answers

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by jeanie , 6 months ago

@dax.schneider 

Yes, interest-only mortgages are offered in Alabama. Like in other states, interest-only mortgages allow borrowers to make payments only on the interest portion of the loan for a specified period, typically five to ten years. After this initial period, borrowers are required to start making principal and interest payments. However, it is important to note that interest-only mortgages may not be as widely available or as popular as traditional mortgage options in Alabama. It is advisable to consult with local lenders or mortgage brokers to gather more information and check for any specific requirements or restrictions.

by ethelyn_hansen , 25 days ago

@dax.schneider 

Interest-only mortgages are offered in Alabama, but it's important to consult with lenders to understand specific eligibility requirements, terms, and conditions. These mortgages can have higher risk because payments in the initial period do not contribute to reducing the loan principal. Borrowers need to have a solid repayment plan for when the principal payments kick in to avoid financial challenges.