Interest Only

Contact

Home

	Listings

All Listings

	Investors

Property Management

	Buyers

Fixer Uppers: Myths & Facts

6 Buyer Mistakes

Beware! Buyer Traps

	Sellers

Avoid These Mistakes!

Pass Your Inspection

For Sale By Owner

We Buy Homes For CASH

27 Seller Tips

	Mortgage Info

Calculators

Mortgage Rates

Credit Report

	Resources

	About

Contact

Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

:: All Listings :: Property Management :: Hot NEW listings :: Buy with ZERO down :: Distress Sales :: Stop Paying Rent :: Moving Up? :: Save Thousands :: Fixer Uppers: Myths & Facts :: 6 Buyer Mistakes :: Beware! Buyer Traps :: Avoid These Mistakes! :: Pass Your Inspection :: For Sale By Owner :: We Buy Homes For CASH :: 27 Seller Tips :: Calculators :: Mortgage Rates :: Credit Report :: Marketplace :: Library :: Glossary :: Schools :: Weather :: Newsletter :: Contact ::