Interest Only Mortgages

How Interest Only Mortgages Work

Just what the name implies, an interest only mortgage is one where payment is made only on the interest – at least for the first number of years of the loan. At some point, depending on the terms of the loan, you start paying principal. But until then, your monthly payment will be lower because you are only paying interest. With this lower mortgage payment obligation, you may qualify for a larger loan (for a bigger, better house), while maximizing your interest tax deduction. Additionally, an interest only loan can be a great investment strategy in a variety of circumstances:

Use Your Interest Only Mortgage Payment Savings for Home Improvement

An interest only mortgage works when the value of your home increases. Money saved in monthly payments can be used to make home improvements that increase the value of your home.

Use Your Interest Only Mortgage Payment Savings for a Child’s College Fund

The earlier you start saving for your child’s college, the more he or she will have. Money saved in monthly mortgage payments can be invested.

Use Your Interest Only Mortgage Payment Savings for Retirement

Refinancing to an interest only mortgage can result in significant savings, which can be used for investment in an IRA or other investments.

Fast, Hassle-free Lending Solutions

We’ll work with you to determine how an interest only loan can meet your needs.  Give us a call at 1.866.733.7305. An expert loan consultant will be there to answer your questions in person from 9 a.m. to 7 p.m. (EST) Monday-Friday.