How Do Interest-Only Mortgage Loans Work?
An interest-only mortgage loan is very simple. For an agreed period of time (generally the early years of a mortgage when most of the payment goes toward interest anyway), your monthly payment will consist of only the interest due for that month. At the end of the interest-only period, your loan reverts to its original terms, with the monthly payments adjusted upward to reflect full amortization over the remaining years of the loan (for instance, following a five-year interest-only loan, a 30-year mortgage would now fully amortize over 25 years). We offer over 100 different interest only loan programs. The type of interest only loan you choose should be tailored to your short and long term needs. Our trained Mortgage Managers can help you determine which program is right for you. Request a no obligation customized mortgage quote from us today by calling (651) 528-5034. For Example: Borrower chooses a 3/27 Interest Only option at 5% interest. During the initial 3 years the borrower woul
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