topic Is an interest only loan the same as a HELOC? in Mortgage Loans

Is an interest only loan the same as a HELOC?

Anonymous — Mon, 19 Oct 2015 17:11:58 GMT

I applied for a HELOC and noticed some of the bank papers said 'Interest Only Mortgage'. Just makes me a little nervous. I would like to know it's just a different term being used, and not something other than what it was suppose to be.

Re: Is an interest only loan the same as a HELOC?

StartingOver10 — Mon, 19 Oct 2015 17:20:53 GMT

HELOC = Home Equity Line of Credit

Many, if not most, HELOC's are interest only products for a designated period of time (like 10 years) and then the loan fully amortizes. Call your LO and get the loan specifics. You should know and understand the terms before you go through this process.

If you don't want a HELOC and you want a fully amortizing type loan, talk to your loan officer about other products that you prefer.

Re: Is an interest only loan the same as a HELOC?

Anonymous — Mon, 19 Oct 2015 17:26:53 GMT

Thank you. And, no, I do want a HELOC. I was just concerned about the wording. Hate to go through all this and then say 'nope, not what I wanted'.