Think you can handle this type of loan?
However, credit unions offer a much cheaper alternative to this type of loan.
Lawmakers agree — as of Jan . 1 it is illegal to write this type of loan in California.
With this type of loan, the borrower agrees to pay off the interest each month but makes no capital repayments.
Lenders saw this type of loan as a temporary fix; borrowers were expected to refinance as their credit scores improved.
and as part of its mortgage market review proposals last year called for tougher lending criteria on this type of loan.
By the end of 2012, after tightening their mortgage rules, most lenders had either stopped lending on an interest-only basis or had severely restricted this type of loan.
This type of loan shop is becoming increasingly familiar in the UK, with all the main chains pursuing aggressive expansion plans.
This type of loan is often used in aggressive tax planning as it is treated as a debt by the recipient, but equity by the lending company.
I don't know whether it's a requirement that principal on this type of loan get paid out on a fixed schedule.
