What is interest-only mortgage?

Interest-only mortgages are a type of financing option available to homeowners in Texas. In this type of loan, the homeowner only pays the interest on the loan for a certain amount of time, and then pays the principal balance of the loan at the end of the loan period. An interest-only mortgage can be beneficial for homeowners in Texas because it can lower monthly payments and help them manage their cash flow. When monthly payments are lower, homeowners can use that extra money to pay down other debts or invest it in other areas of their life. The drawback of an interest-only mortgage, however, is that at the end of the loan period, the homeowner will likely owe the lender more money than they did when they took out the loan. To qualify for an interest-only mortgage in Texas, the borrower must have good credit and have sufficient income to cover the loan payments. Also, the borrower must meet the requirement of a minimum down payment for the loan. In Texas, interest-only mortgages are regulated by the Texas Department of Savings and Mortgage Lending. The department requires lenders to provide borrowers with information about their loan options, borrowers rights, lenders responsibilities, and other important facts about the loan process. This helps to protect borrowers from unfair and predatory lending practices.

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What is interest-only mortgage?

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