Interest Only Programs
- Low interest only payments for the first 1,3, 5, 7 and 10 years
- Great for borrowers who want the lowest possible monthly payment
- Payments typically 15 to 20% lower than fixed rate loans
- Programs available for all credit types
- 100% financing programs available
Interest only programs seem to have become the buzz of the day. With the rising costs of new homes, the interest only loan allows home buyers to purchase homes that they may otherwise not be able to afford. Typically, an interest only loan is an adjustable rate mortgage that is fixed for the first 2 to 7 years with the borrower only making payments to the interest. During the interest only period the principle balance of the mortgage does not decrease! Payments are typically 15 to 20% lower on an interest only loan than those found on fixed rate/ fixed term loan. Typically, the guidelines for these programs are similar to those found on conventional loans, although recently interest only programs have become available for people with less than perfect credit. Interest only mortgages are great for those customers who want a lower payment now and anticipate some sort of financial change in the near future such as relocating or a significant pay increase before the interest only term expires. These programs are not right for everyone and are not without risk, so contact us to determine if an interest only mortgage could be right for you.
* Approvals are not guaranteed. All programs are subject to terms and conditions as well as underwriting approval and review. All programs are subject to change without notice.
