Other types of Arms with Interest only payments:

1-17-08 -- NEW SUPER JUMBO LOAN FOR LUXURY HOMES -- $500,000 TO LOANS IN THE MILLIONS (NO CAP).
LOW INTEREST RATES - UNDER 6%, HIGH LTVS POSSIBLE TO 90% WITH LIQUID ASSETS -- POSSIBLE TO 100% W/ALTERNATIVE COLLATERAL.
AVAILABLE INTEREST ONLY OR 40 YEAR AMORTIZATION!! CLICK HERE FOR MORE INFORMATION

COFI Loan
MTA Loan
COSI Loan
Libor Loan
What are Option Arms?
Advantages of Interest Only Arms
INTEREST ONLY CALCULATOR - See the savings!
SAMPLE OF PRODUCTS OFFERED
Calculators
Frequently Asked Questions

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Would you like a personalized loan comparison? We can send you a comparison of any Option Arm compared to a fixed rate, traditional arm, interest only ARM, 1 and 6 month interest only libor arm (no neg am) and 30 year Fixed Interest Only loan. We can also compare the different option arms for you.
You can be secure in the fact that we will NEVER pull credit without verbal permission from YOU, unlike other lenders.
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Looking for a way to afford more home for less money? Your answer may be an interest only mortgage loan. The way an interest-only mortgage loan works is simple. For a set period, typically, 1 month, 6 months, 1, 3, 5, 7, 10 or 15 years, you pay only the interest portion of your monthly payment. Although you are not paying on your principal during this time period, in a typical mortgage during the early years most of the payment goes towards interest anyway. This interest only option frees up for other purposes the amount that would normally go toward paying off the principal.

At the end of the interest only period your mortgage loan reverts back to paying principal and interest and is amortized over the remaining years. For example, if you have a 5 year interest only ARM, then after 5 years your loan would revert to paying principal and interest and would be amortized over the remaining 25 years at the current indexed rate. 40 year mortgage loans are also becoming very popular. There are now lenders offering an interest only mortgage loan which is interest only for the first 10 years and then reamortized over the remaining 30 years. This makes the ballooning to principal and interest payments less painful, since your loan turns into a 30 year term.

***Interest only loans come in the forms of ARMS, option arm mortgages such as the COFI loan, MTA loan, CODI loan, COSI loan and Libor loan, monthly arms and even FIXED 30 year loans. If you qualify, even subprime (problem credit) loans can come interest only. Please ask us about the options.

Rates, programs and other parameters do change periodically * Please ask your loan officer for more details.

Click here for an interest only calculator

ADVANTAGES TO INTEREST ONLY MORTGAGE LOANS:

1) Although you won't be building equity by paying off the principal, you would be able to buy a home that you want instead of settling for a home you can presently afford. Most likely you would still build equity over the years as your home increases in value.

2) Depending on the lender, you may be qualified on the interest only payment and therefore can qualify for more home on less income. This may enable you to do a full doc loan instead of "stating" your income and therefore qualify you for a higher LTV loan. (This will vary depending on the lender and program)

3) You could take the principal portion of your payment and use it to pay off high interest credit cards, save for your children's education, put the additional money towards a new car, or use that portion for other investments.

4) You could use the principal portion for funding your retirement plan giving you that tax advantage, and still retain the tax deductibility of a larger mortgage.

5) Most homeowners are holding their mortgages for shorter periods. Studies show that people either refinance or move every 1 to 7 years. Most people would rather buy a home that suits their lifestyle and worry about building equity through appreciation.

6) In areas where home values are high, a homebuyer could purchase a home with an interest-only loan and have the same payment that they would for a home of much less value. For example, a $500,000 30 year fixed loan at 6% would have a payment of $2997.00 per month. An interest only payment on $500,000 would be $2500 or a savings of $497.00 per month. Therefore, where a homebuyer would typically only be able to afford home worth $420,000 on a 30 year fixed mortgage, they can now purchase a $500,000 home at the same payment.

7) You can still choose to make principal payments at any time and pay interest only when you need the extra money.

8) Most monthly payments are based on the outstanding principal balance. Therefore, if you do decide to make a principal payment, your monthly payments could potentially go down. This may vary from lender to lender. Check with your loan officer about your specific program.

9) If you plan on buying other real estate, the interest only payment keeps your debt to income ratios lower thereby making qualifying easier.

10) Interest only mortgage loans are available up to $10,000,000 and even for problem credit as low as 550.

FOR MORE INFORMATION ON AN INTEREST ONLY LOAN
CALL TOLL FREE - 866-535-8987

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