We now offer an Interest Only loan, a low and flexible
payment option. Unlike a traditional mortgage where a borrower’s monthly
payment goes towards the principal and interest, the monthly payment on this
loan goes all towards interest for a fixed term, which is why it’s
significantly lower. While this may sound like an attractive choice, not every
borrower is a good candidate for this loan.
Here are a few things you should know if you’re considering an interest
only loan.
- They are usually geared towards borrowers who can afford a 30-year fixed mortgage payment, but would rather have the lower interest only payment to invest the difference elsewhere.
- During the interest only period, the whole amount of the monthly payment qualifies as tax deductible.
- Is more ideal for home buyers who do not intend to remain in the home for very long.
- Good choice for a fixer upper or an investment property.
- Works well for a borrower who doesn’t make a steady salary, instead relies on commission or bonuses.
- Deferred principal for the interest only loan we offer is only 10 years.
Guidelines and online
application for the Interest Only Loan.
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