Interest Only Loans: Low Payments Initially Provide Flexibility

Need some breathing room in your budget immediately following a home purchase? Interest-only loans give you the lower monthly payment up-front, freeing up funds you can use for immediate needs. Once the initial time period for the interest-only payment is over, the payment will increase and then you will begin paying down the original amount you borrowed.

While the interest-only loan is attractive to borrowers who need to improve cash-flow immediately after buying a home, it may cause issues in the future when it becomes more difficult to refinance or to sell the home at a profit. Furthermore, once the interest-only period is over, the payments will increase to include the interest and principal in order to pay off the full-amount over the life of the loan.

An interest only loan may be right for you if you:

•Have a fluctuating income and can expect a significant increase in income before the interest-only period is over.
•Expect to sell the home before the interest-only period is over.

Testimonials

"I just wanted to tell you that it was really a pleasure meeting you today!!! Your professionalism is evident via telephone and email. Upon meeting you I could tell that you are sincere and dedicated to helping me purchase my first home. You made me feel completely comfortable, despite the fact that I was in the process of making, well frankly, one of the most monumental decisions in my life. I can't thank you enough for entertaining all of my questions and concerns - not once did you express annoyance or impatience. "

- Rena