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What is a Cashflow Option / Interest Only Loan?

April 26, 2017cashflow loan option

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What is a Cashflow Option / Interest Only Loan?

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A Cashflow Option / Interest Only Loan is a monthly adjustable rate mortgage with the 1-month London InterBank Offered Rate (LIBOR) as your index. A LIBOR Mortgage Loan is also commonly referred to as an “Interest Only” Loan or “Interest Only” Mortgage. Most LIBOR loans have “Interest Only” payment features to them and are tied to the current rate of the popular LIBOR Index.