Mortgage Rates are Down!
Interest-Only Loan
An interest-only loan allows borrowers to make lower monthly payments by paying only the interest for a set period, typically 5 to 10 years. After this initial phase, payments increase to include both principal and interest, leading to higher monthly costs. This type of loan is ideal for homebuyers looking for lower initial payments, especially those expecting future income growth or planning to sell or refinance before the higher payments begin. If you’re considering a flexible mortgage option with lower upfront costs, an interest-only loan could be a smart choice for your financial strategy.
A Reliable Home Loan You Can Trust.
Lower Initial Payments
Ideal for those seeking affordability during the interest-only phase.
Short-Term Affordability
Suited for borrowers expecting an income increase or planning to refinance before the interest-only phase ends.
Customizable Loan Terms
Various lengths of the interest-only period to fit financial strategies.
Potential Investment Leverage
Investors can redirect savings toward other assets to maximize returns.
Loan Guidelines
If your details are near these guidelines, we encourage you to apply or reach out. Even if you don’t qualify for a 30-year fixed-rate mortgage, we may have other options available.
The Home
Purchase a new home or refinance your current mortgage.
Credit Profile
A credit score above 620 is typically required.
Debt-to-Income
Your debt-to-income ratio (DTI) should be under 50%.
Closing Costs
Along with your down payment, you’ll need sufficient funds to cover closing costs.
Explore Your Potential
Our calculators help you understand and visualize your options
Mortgage Calculator
Planning to buy a home? Calculate your estimated monthly payments, including taxes and insurance.
Refinance Calculator
Considering refinancing your mortgage? Find out how much you could save.
Frequently Asked Questions
Have questions? We’ve got answers! Explore our FAQ section to find helpful information about loans, refinancing, and more. If you don’t see what you’re looking for, feel free to contact us—we’re here to help!
Who are Interest-Only Loans best for?
Interest-Only Loans are ideal for borrowers who want lower initial monthly payments, such as investors seeking short-term affordability or individuals with fluctuating income who expect higher earnings in the future.
How do Interest-Only Loans work?
With an Interest-Only Loan, borrowers pay only the interest on the loan for a specified period (typically 5-10 years). After this period, payments adjust to include both principal and interest, often resulting in higher monthly payments.
What are the pros and cons of an Interest-Only Loan?
Pros:
- Lower initial monthly payments during the interest-only period.
- Frees up cash for other investments or financial needs.
- Potential for flexibility in managing finances short-term.
Cons:
- Payments increase significantly after the interest-only period ends.
- No equity is built during the interest-only phase.
- Higher overall interest costs over the life of the loan.
Can I pay extra toward the principal during the interest-only period?
Yes, many lenders allow borrowers to make additional payments toward the principal during the interest-only period, which can reduce the loan balance and future payments.