Stated Income Interest Only Mortgage
A stated income Interest only mortgage can be an excellent choice. Stated income interest only mortgage products are designed to offer the lowest payment possible as you are not paying toward the principal. Because of the lower payment, the interest only mortgage may mean that you can buy more home. Many lenders offer an interest only mortgage with a stated income documentation option. Email stated income interest only mortgage questions. I also offer stated income business equipment leasing to business owners.
The stated income interest only mortgage was originally designed for individuals whose income is cyclical. For example, a sales executive with a relatively low base salary but bonus payouts would benefit from a stated income interest only mortgage. You have the lowest possible payment when no bonus is paid and you could make contributions to the principal when the bonus is paid. However, I am seeing individuals in many situations choosing a stated income interest only mortgage as a method of lowering their payment, sometimes significantly.
Stated income interest only mortgage products are available for a 30 year term, with the first 10 years interest only and the final 20 years fully amortizing although I am seeing more lenders offering this option on stated income interest only mortgage ARMs. 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 often avoid prepayment penalties on these loans and can often work around the requirement. Another useful feature of interest only mortgage products is that if you make a principal payment during the interest only period, your balance is reduced the following month lowering your payment further.
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:
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 simple
interest payment is, Loan Amount x Interest Rate / 12.
Learn more about stated income interest only mortgage closing costs
Of all of the interest only programs available, the Cash Flow Stated Income Interest Only Mortgage offers the greatest flexibility by far.
The new Asset Manager stated income interest only mortgage which gives you significantly lower interest only payments and build equity faster.
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
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.
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