What Is an Interest Only Loan?

Only pay interest on the mortgage through monthly payments for an initial period of time on an interest-only mortgage loan. The interest-only period can be between 1 year and 10 years and after the interest-only period is up you would be required to pay standard principle and interest payments to pay the loan off in the remaining term.

Interest-only loans can be great options to keep your monthly payments low but you should also consider the potential increases in payments at a later date. One of our mortgage professionals would be more than happy to discuss the pro’s and con’s and determine if an interest-only is right for you.