Interest Only
Interest only loan programs provide the same features as fixed and variable rate programs PLUS a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.
| Interest Only Programs |
- Several payment options
- Lower monthly payments
- Qualify for a higher loan amount
- Qualify at the interest only payment
- Option to pay the full principal and interest payment
- Puts you in control
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- Higher rates
- fixed for only 10 years
- Payment will be higher for the remaining term
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Interest only loans offer you more flexability in where you are applying YOUR money. The lower payment often afforded with an interest only loan is because you are not sending the lender any principal. This enables most people an opportunity to invest, save or create an emergency fund where saving was not an option before.
Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.
You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease. With proper planning, you will be able to maximize your tax deductions and minimize your interest expense.
Ask your Mortgage Analyst about our extensive mortgage planning programs.
