Interest Only Mortgage
If your income fluctuates or you expect an increased income in the future, an interest only mortgage may be an option for you.
An interest only mortgage is a loan in which the borrower is only required to make a monthly payment of the interest each month for a specified term, usually between two and ten years. After that term, the borrower must pay off the loan balance in a lump sum, refinance the loan or make payments that increase dramatically to pay off the remaining principal.
An interest only mortgage is loan program tailored for consumers who have incomes that fluctuate month to month. Business owners, sales persons who work on commission or executives who rely on bonuses often seek this type of loan because it allows them a low monthly payment in which they can overpay toward the principal when they have the income.
An interest only mortgage may also allow the borrower to maximize their buying power by buying a more expensive house now because of the low, interest only monthly payments, knowing that their earnings or available funds will increase in the coming years to pay the principal in the future.
On Best Mortgage Rates, you can find the best mortgage rates for an interest only mortgage.
If you dream of owning your own home but your income fluctuates or you expect your earnings to increase in the future, an interest only mortgage may be right for you. To find out if you qualify and lock in your rate, contact a lender today.
