Apply Online          

     

Welcome to Carteret Mortgage!
 Your source for consumer information  

 

 



Option Arm Manage your Mortgage!



Construction/Perm

Interest Only Mortgage


No Doc


Real Estate Investor


Refinance





















 

California Interest Only Mortgage

I am a Mortgage Broker specializing in interest only mortgages and am fully licensed in California. A California Interest only mortgage can be an excellent choice for many individuals in California. California interest only mortgage products are designed to offer the lowest payment possible as you are not paying toward the principal in your monthly payment. Because of the lower payment, the California interest only mortgage may mean that you can buy more home than with a fully amortizing mortgage. You may make additional payments toward your principal balance at any time.

The California interest only mortgage was originally designed for individuals whose income is cyclical. For example, an individual who is a sales executive with a relatively low base salary but commission payouts quarterly would benefit from an interest only mortgage. You have the lowest possible payment during months when no bonus is paid and you may make contributions to the principal balance when the quarterly bonus is paid. However, I am seeing individuals in many situations choosing this option as a method of lowering their payment, sometimes significantly.

Generally, interest only mortgage products are available for a 30 or 40 year term, with the first 5 or 10 years interest only and the final 20 to 25 years fully amortizing although I am now seeing some progressive lenders offering this option on a California interest only mortgage ARM. Some lenders who offer an interest only mortgage require a prepayment penalty for the first 1-3 years and have caps on the amount your rate can change at any time and over the life of the loan. I always try very hard to avoid prepayment penalties on these and other types of loans and can usually work around the requirement. 

Again, an interest only mortgage is not the right choice for everyone, but it can be a very effective choice for some individuals. Please give me a call or send an email and I will be happy to discuss this alternative with you.

An example of how powerful this tool can be:
On a $250,000 mortgage at 6.000% for 30 years-
Principal and Interest payment= $1498.88
Interest Only mortgage payment at 6%= $1250.00
Total Monthly savings= $248.88

If you want to make the comparison for your own specific situation, mortgage calculators to find the amortizing payment are available on this website. The math to find the simple interest payment is, Loan Amount x Interest Rate / 12.

Of all of the interest only programs available, the Cash Flow Interest Only Mortgage offers the greatest flexibility by far.

I have just developed a short PowerPoint presentation in .pdf format on interest only mortgages, some real world examples, and some suggestions on how best to use them available by email

Read more about California Interest Only Mortgage Closing Costs

As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come.  Read more about this free, no obligation service.

New!

California Interest Only MortgagePrequalify for your California Interest Only Mortgage.

ARMs   Home Equity    Interest Only Mortgage  Investor Loans  Jumbo  Mortgage Links   Reverse Mortgage  No Downpayment Loans   Refinance Center   Site Map  Vacation Home Loans   Commercial Loans Mortgage Home

Certified Mortgage Planning Specialist


NEVER an Origination Fee!

Extensive consumer information on construction,remodeling, first time homebuyer,and no documentation mortgages.                                                                                                                       VA Mortgage