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Interest-Only Mortgages

Interest-Only Mortgages

A mortgage is called “Interest Only” when its monthly payment does not include the repayment of principal for a certain period of time. Interest Only loans are offered on fixed rate or adjustable rate mortgages as wells as on option ARMs. At the end of the interest only period, the loan becomes fully amortized, thus resulting in greatly increased monthly payments. The new payment will be larger than it would have been if it had been fully amortizing from the beginning. The longer the interest only period, the larger the new payment will be when the interest only period ends.

You won't build equity during the interest-only term, but it could help you close on the home you want instead of settling for the home you can afford.

Your Mortgage as a Financial Tool!

FACT, outside of being self-employed, the biggest financial decision or purchase is your home.  However, your mortgage can also be the most powerful financial tool you will ever have.

Interest-Only Mortgage

You may be asking does this make sense for me?  With interest rates (currently) being so low, what would be the advantages and disadvantages?  What could I accomplish?  Why do people do interest-only mortgages?

Outside of purchasing or refinancing your home, a mortgage is designed to be a tool that allows you to accomplish:

  • Paying off high nontax deductible debt.
  • Fully funding your 401K
  • Paying off student loans
  • Cashing flowing for your current or future business.
  • Allow you to maximize rental income on investment properties
  • College savings
  • Funding emergency funds

Plus many, many more.  There is an old saying cash flow is king.  Why?  Life comes at you fast and if 2020 has taught us anything, when you are sitting in a good cash position, cash flow, and low debt situation you have the ability to ride out even the worst of storms.

Enter Interest-Only Mortgages.  Now, not all mortgages are created the same.  Not all mortgage professionals are the same.  Let’s sit take a 360-degree look at your finances and goals.  Then we will put a mortgage plan, a roadmap that makes sense for today and the future. 

Click on the button below to set an initial 10-minute call.

After getting your loan and purchase your home, you will continue to be supported and educated by us on how to manage your mortgage. We offer this so you have expert guidance at all times.
Contact us any time with questions!

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