Self liquidating loan scam
However, interest-only mortgages do not last indefinitely, meaning that the mortgagor will need to pay off the principal of the loan eventually.
Interest-only mortgages can be useful for first-time home buyers because it allows young people to defer large payments until their incomes grow.
He or she can either renew the interest-only mortgage or repay it through standard means, such as entering into a normal mortgage and liquidating investments.
Before they will entertain talk of settling your debt, your bank will first want to liquidate all the collateral (the one exception could be your primary residence).
You need to contact your bank, explain to them that you have closed, and you are willing to cooperate however you can.
A type of mortgage in which the mortgagor is only required to pay off the interest that arises from the principal that is borrowed.
Because only the interest is being paid off, the interest payments remain fairly constant throughout the term of the mortgage.