Interest Only Mortgage
Set an interest only period of up to ten years on your fixed rate or adjustable rate mortgage payment!
With more and more people gaining knowledge about the great benefits of an interest only mortgage, they are now very much in demand! You could qualify for a wide range of interest only loan programs designed for both home buyers and homeowners. With recent changes in the real estate industry, attaining an interest only mortgage is continuing to grow in popularity, and is perhaps one of the best options for you if you're a home buyer or a homeowner looking to refinance. Use our quick quote to learn more!
With the lower payments, an interest only mortgage offers you the ability to afford the larger home that you have always dreamed of. You are also relatively free of large mortgage payments and the cash flow burdens they represent for up to 10 years of the loan term. Since you're just paying the interest, it means your payments are lower compared to a regular fully amortized mortgage loan payment that requires you to make a payment of both the principal and the interest. Use our interest only mortgage calculator to see the payment difference!
Whether a homeowner or home buyer, the actual concept of an interest only mortgage is a little misleading, simply because there is really no such thing as an interest only mortgage loan! This mortgage loan program is usually made up of two parts or two types of payments -- the first being the interest only period with smaller interest only payments and the second being a mortgage with payments that lead to full amortization over the remaining terms of the loan.
The typical home buyer or homeowner can opt for an interest only mortgage attached to an adjustable rate program or a home equity line of credit. However, with ARM indexes offering very little incentives in lower rates, you may be better served to opt for an interest only fixed rate mortgage. This still allows you to pay only interest for the first ten years, but has the benefit of having a fixed rate of interest. As a long term strategy, the interest only mortgage tied to a fixed rate offers the best of both worlds -- lower initial payments and long term full amortization payment security. Use our quick quote to learn more!
There can be many situations where an interest only loan can make perfect sense. Here are just four reasons that make the program a good choice:
- The home you're buying is a "temporary" residence, either through job transfer or future plans to upgrade to a larger home. An interest only mortgage allows you to maximize cash flow on a home you have no intention of keeping -- you build equity through natural home appreciation and can invest the difference into higher ROI asset building strategies which facilitate your future new home purchase.
- Are you in a profession where your monthly salary is not fixed? Do you have a sporadic income pattern? If so, an interest only mortgage program can work for you since you have the option of paying interest only during lean times and paying larger amounts towards your principal when you have the surplus income.
- Interest only loans also make sense when you are investing your monthly payment savings on something with low risk, but with higher returns on your investment than you expect to receive from a traditional mortgage payment.
- You are taking out a mortgage on a temporary basis -- for example, you have been temporarily relocated in order to turn around a plant in another state. Taking out an interest only mortgage loan will most likely be good for your cash flow. You can keep your payments low rather than paying your equity in the home. By doing so, you'll allow the natural property appreciation to build your equity. It's like a cash-out refinance...without the refinance!
However, the most important question a home buyer or homeowner can ask is, "What is the amount I can save in cash flow with an interest only mortgage?" Just contact a professional interest only mortgage specialist to find out just how much you can improve your monthly cash flow! Use our quick quote to learn more!