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Interest Only Jumbo LoanInterest only jumbo loan products have loan amounts above $417,000 and can be an excellent choice. Interest only jumbo loan products are designed to offer the lowest payment as you are not paying toward the principal. The interest only jumbo loan may mean that you can buy more home than with a fully amortizing jumbo loan because of the lower payment. An interest only jumbo loan is flexible. You may make additional payments toward your interest only jumbo loan balance at any time. If you do, your next payment will be lower as the payment is calculated on the current loan balance. This is different than with a fully amortizing loan where any additional contributions to principal are not accounted for until the end of the loan. Email interest only jumbo loan questions Interest only jumbo loan products were originally designed for individuals whose income is cyclical. For example, a sales executive with a relatively low base salary and commissions would benefit from an interest only jumbo loan. You have the lowest possible payment during months when no bonus is paid and would be able to make contributions to the loan when the bonus is paid. However, I am seeing individuals in many situations choosing an interest only jumbo loan as a method of lowering their payment, sometimes significantly. Interest only jumbo loan products are available for a 30 year term, with the first 5 or 10 years interest only and the final 20 to 25 years fully amortizing. I am now seeing some progressive lenders offering this option on Interest only jumbo loan ARMs. Reduced documentation Interest only loan products are readily available as well. Again, an interest only loan is not the right choice for everyone, but it can be a very effective choice for some. 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: If you want to make the comparison for your own specific situation, calculators to find the amortizing payment are available on this website. The math to find the interest only jumbo loan payment is, Loan Amount x Interest Rate / 12. Many lenders offering interest only jumbo loan products are now basing them on the LIBOR Index. There are many variations of this important product group. Read more about Libor Interest Only Jumbo Loan. Of all of the programs available, the Cash Flow Interest Only Jumbo Loan offers the greatest flexibility by far. I have just developed a short PowerPoint presentation in .pdf format on interest only jumbo loan products, some real world examples, and some suggestions on how best to use them available by email Read more about Interest Only Jumbo Loan Closing Costs I have an article "Buying your home in 2008" by email explaining negotiating strategy in today's market. As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service. New! View my Wealthbuilder presentation and learn the safe way to manage your debt and fund your retirement. I hope the information on this page was useful to you. Please scroll down to view my Mortgage Market Guide. It is a weekly publication explaining the financial markets from a consumer's perspective that is available on this website or by email subscription. I have nearly 8,000 subscribers today and would be happy to have you as well. Your email address will never be used for any other purpose.
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