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Un prêt in Fine est une forme de prêt hypothécaire qui permet à l'emprunteur de ne payer que les intérêts chaque mois pendant une période déterminée. Le montant principal du prêt sera ensuite payé à la fin de la période, généralement sous la forme d'une somme forfaitaire ou, parfois, de versements. Les prêts hypothécaires à intérêt unique offrent aux emprunteurs des paiements mensuels parmi les plus bas dans le monde du crédit hypothécaire.
This is opposed to most standard mortgages. In most standard mortgages the principal loan amount is repaid on a monthly basis in addition to interest.
Typically interest-only mortgages are only offered with a variable or adjustable interest rate. In addition to that, the term for an interest-only mortgage is usually short, usually spanning between 5 to 10 years.
Interest-only mortgages may suit property “flippers” or investors with a short time frame in mind best. As the monthly payments are low, once the term of the mortgage is close to ending, an investor can sell the property, repay the principal amount, and pocket any profits made.
Not everyone is eligible for an interest-only mortgage, and there are some strict stipulations. A borrower is required to have a low DTI ratio and a good-to-excellent credit score. A larger down payment and collateral are also typical. Lenders may have more or slightly different requirements, although this is on a case to case basis.
Interest-only mortgages can be difficult to qualify for and suit only a portion of homebuyers. One should consider it if they are interested in investing in property on a short-term basis.