What Is an Interest Only Loan?
Interest Only Loans
Pay the Interest Portion of the Loan First
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.