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  • Answer Upon - The Interest Only Mortgage Payment - What are the Critical Dates That Impact Your Payment

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    nge once a year (the "1" in 5/1) during the rest of the loan.

    The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even

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    Traditional mortgages require that each month you pay back some of the money you borrowed (the principal) plus the interest on that money. The principal you owe on your mortgage decreases over the term of the loan. In contrast, an interest only mortgage payment allows you to pay only the interest for a specified number of years. After that, you must repay both the principal and the interest.

    Most mortgages that offer an interest only payment plan have adjustable interest rates, which means that the interest rate and monthly payment will change over the term of the loan. The changes may be as often as once a month or as seldom as every 3 to 5 years, depending on the terms of your loan. For example, a 5/1 ARM has a fixed interest rate for the first 5 years; after that, the rate can change once a year (the "1" in 5/1) during the rest of the loan.

    The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even

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    m of the loan. In contrast, an interest only mortgage payment allows you to pay only the interest for a specified number of years. After that, you must repay both the principal and the interest.

    Most mortgages that offer an interest only payment plan have adjustable interest rates, which means that the interest rate and monthly payment will change over the term of the loan. The changes may be as often as once a month or as seldom as every 3 to 5 years, depending on the terms of your loan. For example, a 5/1 ARM has a fixed interest rate for the first 5 years; after that, the rate can change once a year (the "1" in 5/1) during the rest of the loan.

    The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even

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    >Most mortgages that offer an interest only payment plan have adjustable interest rates, which means that the interest rate and monthly payment will change over the term of the loan. The changes may be as often as once a month or as seldom as every 3 to 5 years, depending on the terms of your loan. For example, a 5/1 ARM has a fixed interest rate for the first 5 years; after that, the rate can change once a year (the "1" in 5/1) during the rest of the loan.

    The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even

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    e as often as once a month or as seldom as every 3 to 5 years, depending on the terms of your loan. For example, a 5/1 ARM has a fixed interest rate for the first 5 years; after that, the rate can change once a year (the "1" in 5/1) during the rest of the loan.

    The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even

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    nge once a year (the "1" in 5/1) during the rest of the loan.

    The interest only mortgage payment period is typically between 3 and 10 years. After that, your monthly payment will increase - even if interest rates stay the same - because you must pay back the principal as well as the interest. For example, if you take out a 30-year mortgage loan with a 5-year interest only payment period, you can pay only interest for 5 years and then both principal and interest over the next 25 years. Because you begin to pay back the principal, your payments increase after year 5.

    So knowing that your payment will at some point change, what are some important dates that will impact your interest only mortgage payment?

    Introductory period. Many interest only mortgage payments have a 1-month or 3-month introductory rate period at the beginning of the loan. During this period, lenders use a lower interest rate to calculate your payments. For some interest only mortgage

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