Interest Only Fixed Versus Principle & Interest

This is a personal choice that will vary for each investor.

Fixed Rates - Interest Only.

Some investors like to know exactly what their monthly repayments will be for a certain amount of time. They will therefore prefer a fixed interest rate. They will want repayments at the lowest possible amount and will choose interest only. This type of rate is usually preferred for people on a tight budget.

Variable Rates - Interest Only

Some investors will always choose variable interest rates. These investors will also choose interest only to minimize their monthly repayment.

Fixed Rates & Variable - Principle & Interest

Some investors will want to reduce their properties principle amount owing from the start and they will choose to pay either fixed or variable rates on this program.

All options have merits depending on the point of view of the investor. Some like to know what their repayments will be for a set period of time and are not interested in repaying the loan. Others will be focused on reducing the debt as quickly as possible. Its your choice.

Adding Back Lenders Mortgage Insurance

Some investors will want to put as little of their own money into the deal as possible. Therefore the option of adding back Lenders Mortgage Insurance is often a bonus to the investor.