Interest Only Mortgage
Interest only mortgage products can be an excellent choice.
Interest only mortgage products offer the lowest payment. Interest only mortgage products mean you can buy more home.
Interest only mortgage products are flexible. You may make additional
interest only mortgage payments
toward your principal balance at any time. By reducing the balance,
the next interest only mortgage payment will be lower as your interest only mortgage payment is calculated on the
current amount. This is a significant difference from a fully amortizing
mortgage as extra mortgage payments do not change your payment. I am a mortgage
broker specialized in the interest only mortgage with 237 lenders offering the
interest only mortgage products to ensure you get the best mortgage for your specific
Interest only mortgage products are available for a 30 or 40 year
term, with the first 10 years interest only and the final 20 years fully
amortizing although I am now seeing many lenders offering this
option on Interest Only Mortgage ARM products with fixed
rate periods of 3, 5, and 7 years. At the end of the interest only period, your
mortgage will convert to fully amortizing for the remaining term.
Reduced documentation interest only mortgage loans are available as
Of all of the interest only mortgage programs available, the
Flow Interest Only Mortgage offers the greatest flexibility by far.
These products were originally designed for individuals whose income is
cyclical. For example, a sales executive with a relatively
low base salary and commission payouts quarterly would benefit from it. You have the lowest possible payment during months
when no bonus is paid and you can make contributions to the
principal balance when the bonus is paid. However, I am seeing
individuals in many situations choosing the product as a method of lowering
their payment, sometimes significantly.
This, or any other product, will not be the right choice for everyone, but it can be a very effective
choice for some individuals. Please call or send an
with the specifics of your situation
and I will be happy to discuss this alternative with you.
An example of how powerful this tool can be:
On a $250,000 loan at 6.000% for 30 years-
Principal and Interest payment= $1498.88
Simple Interest payment at 6%= $1250.00
Total Monthly savings= $248.88
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 payment is, Loan Amount x Interest Rate / 12.
have developed a PowerPoint presentation on
some real world examples, and some suggestions on how best to use them available
Read more about Interest Only
Mortgage Closing Costs
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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
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