Interest only calculator
The Cost of leverage in exchange for investment growth
This Interest only calculator helps you to quickly work out what are your interest component amount (as an expense) on your mortgage repayment. It excludes the principal repayment portion (as your home equity) as the purpose here is mainly to understand your outgoing interest expenses. You may also opt for an interest only mortgage loan repayment that helps with your cash flow as an investor. What is an Interest Only Mortgage Loan?
What is an Interest only mortgage?
An interest only mortgage is a loan where the borrower only pays the interest on the loan, and does not repay any of the principal until the end of the loan term. This type of loan can be attractive to investors, as it can help to reduce their monthly mortgage payments and free up more cash flow. In New Zealand, such loans terms are available and are very popular among investors or home owners. It could potentially improve the overall ROI with lesser cash being tied up in the home equity, maximizing growth when one seeks to build and scale a portfolio.
There are a number of advantages to using an interest only mortgage for investment purposes.
First, it can help to reduce the monthly mortgage payments, which can free up more cashflow for other investments.
Second, interest only mortgages can be a good way to leverage your investment, as you can borrow more money to purchase a property. This can help you to grow your portfolio more quickly.
Third, interest only mortgages can be tax-deductible, which can save you money on your tax bill.