Interest Only

Interest Only

Interest Only Loan

Are you best suited for an Interest Only Loan?
Interest-Only loans can be uniquely beneficial, but not for everyone. They are useful for those who desire more funds in the short term by offering the option to pay down only the interest due and leave the principal amount of debt unchanged.
These loans offer flexibility by allowing the borrower to choose whether they want to pay principal and interest or solely the interest during the period in which the contract allows.
It is important to be mindful that after the interest only period expires the payment level will raise to account for both principal and the time value of money.

Call one of our industry experts to explore this avenue more at (855)-517-3388

What makes a loan “interest-only”?
Interest-Only loans are ones that give the borrower the choice to elect to make their monthly payment based on the full payment amount or solely the interest component due at the time. These loans contain that option for a specified period, at the end of which the loan converts into one that principal and interest is due over the remaining period to fully amortize the loan.


Advantages of an Interest-Only Loan

The major advantage to this type of loan is the flexibility of being able to choose whether you make a full or interest only payment. This provides you options when you need the funds for your life’s other ambitions and goals. It empowers the borrower to customize their expenditure on their mortgage so that they may use these funds wherever they need them most.
Jumbo and Super Jumbo loans well over the $647,200 limit
Style of Payment Options (normal, interest only, balloon)
Offer fixed and adjustable rates
Property can be non-owner occupied