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What would you think if I told you you could get a home mortgage for ZERO interest? Well, it’s true and the good thing about it is thatthere is no catch - but the requirements are more stringent than for normal loans.
A transaction involving aero-interest financing usually carries a larger than normal down payment, often one-third or one-half down. The balance of the purchase is then paid in equal monthly installments over a short term - usually five years.
A simplified example would be 190,000 house purchase with a $30,000 down payment and sixty $1,000 monthly payments. After five years,
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