Pay Interest Only Home Loans

With more and more people gaining knowledge about the great benefits of a Interest only mortgage, they are now very much in demand! At 1st Continental Mortgage we offer a wide range of interest only mortgage programs. With recent changes in the real estate industry, the interest only loan programs are continuing to grow in popularity, and are perhaps one of the best options for you whether you're a home buyer or homeowner looking to refinance.

With the lower payments an interest only mortgage offers, you can now afford to buy that bigger house that you have always dreamed of. You are also relatively free of much larger 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 as compared to a regular fully amortized mortgage loan payment that requires you to make a payment of both the principal and the interest.

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, one of our specialty mortgage programs or a home equity line of credit. However, with ARM indexes offering very little incentives in lower rate, you may be better served to opt for a interest only fixed rate mortgage. This still allows you to pay only interest, 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.

There can be many situations where an interest only loan can make perfect sense and not to forget that they have many benefits as well. 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? Then a 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 principle when you have 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 are a real estate investor who rents properties. 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, and allow the natural property appreciation to build your equity. It's like a cash out refinance, without the refinance!

However, the most important question as a home buyer or homeowner is, "What is the amount I can save in cash flow with an interest only mortgage loan?" Just contact a professional Interest only mortgage specialist with 1st Continental Mortgage to find out just how much we can improve your monthly cash flow!