Qualify with interest only mortgage loan payments.

Another Good Option Available is
Interest Only Mortgage Loans.

Offering low monthly payment interest only mortgage loans and home finance money savings techniques online.

Today's Rate Quote               Get an Offer Now                Quick Application

Calculators                       Good Faith Estimate

Lower payments make qualifying easier with
great tax advantages.

Offering interest only mortgages and loans for low payments pays off for borrowers. We'll explain how and why to use this adjustable rate or fixed home financing technique. This type program may or may not be the best program for you.

Interest only mortgage payment loans are pretty self explanatory per their name. You make only interest mortgage payments on the loans for a fixed period of time. There is no reduction in principal. After that period, there may be a balloon payment which means the entire balance comes due and payable all at once or the program may switch to a fully amortizing mode meaning the payments will increase to an amount that will pay it off over the remaining term.

Rates on IO are usually higher than fully amortizing programs on both ARM and Fixed programs. Higher by usually an average of .25% This because of the higher risk factor to the lenders. IO payments don't build equity which increases the lenders level of exposure.

Example: An interest only mortgage loan of $150,000 on an adjustable rate program that offers a fixed interest rate of 5% for the first 5 years will have IO payments of $625 per month for the full 5 years. The fully amortizing payment at the same rate and term would be $805.23. After the 5th year, it will amortize at the fully indexed rate ( index + margin ) until it is paid off. Rate caps will protect the borrower from huge increases that could otherwise be crippling.

Are these programs on an adjustable rate plan safe? Yes. Adjustable rates got a bad reputation when they first came out. In the beginning they had no rate or payment CAPS. Rate and payment caps protect you from large payment increases but your payment could actually go down if rates are lower at adjustment time. The LIFE CAP of the ARM is the limit of rate increases over the entire life of the program. These caps allow you to figure out the worst cast scenario on rate and payment increases. If you can handle that, you're in good shape. If you can't handle the worst case over the time you expect to keep it, give ARM financing a second thought.

On Fixed Rate mortgage interest only loans, the payments are made for on average the first five to ten years of the term. After that, the remaining balance is amortized over the remaining term. Here's the math.
$150,000 at 5%
IO payment = $625 per month. for 10 years.
After 10 years:
$150,000 bal. at 5% amortized for 20 years = $989.93 per month.

Interest only mortgage home loans are not for everyone. Carefully consider your goals and financial plans before committing to a home financing program. You are the one who has to live with it after it closes. We are happy to counsel our clients and prospective clients on what program might be best for their specific need. It's what we do best.

We put the power of discount volume buying to work for you!
We're affiliated and approved with nearly 250 wholesale home lending institutions. We access their latest rates and fees on line in "real time" and can literally shop the entire wholesale market in a matter of just a few minutes to find the lowest total rate and fee package available. You get lower than average retail prices on interest only loans and mortgages or any other program!

Today's Rate Quote               Get an Offer Now                Quick Application

Calculators                       Good Faith Estimate

Current Rates | Programs | Application | Links | Pre-Approval | Home
| Morgage Calculator | Rate Lock | About Us | Contact Us | Free Stuff | Articles | Site Map

Florida | California | Colorado Real Estate in Summit County | Commercial Lenders