The interest-only loan is almost impossible to obtain. For people with a rental home, it is even completely out of the question to obtain an interest-only loan. An interest-only loan is almost no longer possible for people with an owner-occupied home. In any case, not with the banks where AshLenderchiro can place loans. We must also say that we welcome this development. Borrowing money and only paying the interest has therefore become virtually impossible.
What is an interest-only loan?
An interest-only loan is a loan for which you only have to pay interest. You determine the repayment of the loan yourself. It is therefore a form of credit with an incredibly low monthly charge. This is because you do not pay any repayment per month. It is a form of borrowing money that has been extremely popular in the past. In addition to the interest-only loan (which almost anyone could get), savings policies were sold to redeem the loan after 15 years or more.
These policies were mostly the policies that we now know as the profiteering policies.
Because the proceeds of these profiteering policies are in many cases much lower than the loan, one can be left with a residual debt.
What to do if you now have an interest-only loan?
If you currently have an interest-only loan, you will see that you have to pay money monthly, and the loan amount does not decrease. You often also pay a substantial interest for this interest-only loan. As a result, you may have a loan of, for example, $ 25,000 to which you have to pay $ 200 or more per month. And where you also make no redemptions. If this is the case for you, applying for a new loan may be a good solution.
We are happy to work with you to find the best solution. You must realize that this will most likely mean that your monthly installment will be higher. It is true that you will then also make repayments in your credit. You will see the outstanding balance of your loan decrease slightly every month. This can be very satisfying.
Advantage of redeeming your interest-only loan
It may speak for itself. But we think it is important to mention it. The big advantage of increasing your monthly installment with an interest-only loan is that you will repay your loan. As a result, you will pay less interest on your loan. And the less interest you pay on your loan, the sooner you have repaid your loan. Repaying an interest-only loan can save you hundreds and perhaps thousands of dollars.