Virginia Interest Only Mortgage
A Virginia interest only mortgage can be an excellent choice for many Virginia
residents.
I am a Virginia mortgage broker specializing in Virginia interest only mortgage
products. Virginia Interest only Mortgage products are designed to offer the lowest payment possible
with no principal payment in your
interest only mortgage. With a
lower payment, the Virginia interest only mortgage allows you to buy more home
than an amortizing mortgage.
The interest only mortgage was designed for individuals with
cyclical income. For example, a sales executive with a low base salary and bonus payouts would benefit from an
interest only mortgage. You have the lowest possible payment
when no bonus is paid and you may make contributions to the
principal when the bonus is paid. However, I am seeing
individuals in many situations choosing to lower
their mortgage payment, sometimes significantly.
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 now seeing some progressive lenders offering this
option on 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 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
avoid the requirement. Another useful feature of the interest only
mortgage is that if you choose to make a principal payment during the interest
only period, your balance is reduced the following month lowering your payment
further.
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, 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.
Please email me with any specific questions about a
Virginia interest only mortgage
Learn more about Virginia
interest only mortgage closing costs.
Of all of the interest only programs available, the Cash
Flow Interest Only Mortgage offers the greatest flexibility by far.
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.
I hope the information on this page was useful to you. Please scroll down
to view my
Mortgage Market Guide. Prequalify
for your Virginia interest only mortgage.
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