by M. Ny

Interest-only home equity loans are second mortgages that you pay only interest for the first 3, 5, or 10 years of the loan, significantly lowering mortgage payments during the first few years. Home equity lines of credit have been increasing in popularity because the mortgage lender only requires the borrower to make an interest only payment that tends to be less than the standard principal and interest payment.

Interest only 2nd mortgages are not just for purchase loans. Many people refinance with interest-only loans to lower payments and consolidate debt.. There are also several varieties of interest-only home equity loans or second mortgages. These work in a similar way as those offered for first mortgages, including lower payments for affordability during the first few years of the loan.

•	Interest Only Second Mortgages
•	Variable Rate Interest
•	Large Home Equity Lines up to $500,000 Loan Sizes
•	Low Rate Second Mortgages
•	Adjustable Rate Credit Lines

Interest-only loans can be good for people whose income is sporadic, either because they are self-employed, are paid on commission or because they receive annual bonuses. This allows them to pay only interest during lean months, and make higher payments against the principal later on when they get their bonuses or commissions.

"These loans can be of value for people who want to save or invest the money they would have paid in principal," said Keith Gumbinger, vice president of HSH Associates, a publisher of loan information in Butler, N.J. Thus, interest-only loans also make sense for investors who invest the money they save into their stock portfolios. Additionally, they could work well for real estate speculators who buy property only to sell it later on when the property appreciates in value.

According to Brendon Daly, of BD Nationwide, "there is usually no prepayment penalty on interest-only loans, but look out for early termination fees."

In short, interest-only loans are for those who are more interested in freeing up immediate cash flow than in building equity in the home.

Maria writes loan articles for companies like BD Nationwide Mortgage. She recommends these sites that for loan advice experience: Get 2nd mortgage and home equity loan rate quotes at Home Equity Loans. If you need a cash out loan or simply advice about second mortgages with poor credit, take a look at Second Mortgages Online. For debt consolidation and mortgage refinancing solutions, please visit the Home Equity Lines of Credit. Article Source: http://EzineArticles.com/?expert=Maria_Ny

100% home equity loans for 1st -time home buyer! Do you need to buy furniture for your new home? Maybe you want to consolidate some credit cards or take out cash for education. 2nd Mortgage Refinance and refinance your home equity line with a fixed rate. You can stop paying excessive private mortgage insurance (PMI). Available with an adjustable or fixed interest rate. Get plenty of cash with Second Mortgage Loan amounts to $500,000.

Looking to finance a new Jumbo home Loan? Get approved for a jumbo home loan. Choose from interest only, 100% home financing, fixed interest rates and negative amortization. Home equity credit lines offer access to money for home improvements and 2nd home construction. Get approved for a 2nd mortgage in just a few minutes and compare several home equity options from All-Star Mortgage Lenders.