Mobile Home Loans

Many people prefer mobile homes because of their utility and cost efficiency. Nowadays the market offers a variety of loans for financing the requirements of the buyers. In an interest only mortgage repayment, only the interest has to be repaid over a set period of time. The principal can be repaid based on the lenders choice.

Interest only loans have become hugely popular in recent times. The observation is that the interest only option is attached to adjustable rate mortgages. As a result the popularity of interest only loans has skyrocketed.
Adjustable rate mortgages are risky. This is because as market rates increase, the homeowners have to pay rising mortgage rates. If the interest only feature is added, then the risk increases further.

Interest only loans have a lower rate than standard fixed rate mortgages. This is something of a marketing gimmick. Adjustable rate mortgages are responsible for the lower rates rather than interest only loans.

In some cases, interest only loans are worthwhile. If the borrower keeps repaying the principal when he has the money, the amount of principal owed will fall and in such cases this type of loan is advantageous.