Interest
Only Mortgage Programs
Interest only loans allow you to keep your monthly
payments low by only requiring the repayment of interest
over a predetermined period of time. During this initial
period, finances that would go towards paying down
the principal on your loan are freed up to be put
to use elsewhere. Many people choose these products
for paying off debts with higher interest rates, reallocating
money to alternative investment vehicles or simply
to allow the purchase of a higher priced home. These
types of loans are also very popular in areas where
real estate prices are on the rise and homeowners
are gaining equity without having to pay down principal.
There are a wide range of interest only home loan
products to choose from. These products offer many
benefits and are subject to a varying degree of risk.
Certain states do not allow interest only loans so
be sure to check with an AAXA loan advisor to see
if an interest only mortgage is an option in your
area.
You can discuss your interest only loan alternatives
with your AAXA Discount Mortgage loan advisor by calling
877-RATE-LOW (877-728-3569). You may also check
rates by completing a AAXA rate
quote form or our online
mortgage application.
Interest Only Home Loan Benefits:
- Lower monthly payments.
- Increased financial flexibility.
- Ability to purchase more expensive home.
How Much Less Would Your Payment be with an Interest Only Loan Verses that of a Fully Amortizing Home Loan Product?
Let’s compare the monthly payments for two sample mortgage products:
Program: 30 Year Fixed Rate Mortgage – Principal and Interest
Loan Size: $200,000
Rate: 6.00%
Monthly Payment = $1,199.00
Program: 30 Year Fixed Rate Interest Only Mortgage Loan
Loan Size: $200,000
Rate: 6.375%
Monthly Payment = $1,062.35
Monthly Payment Savings by Considering an Interest Only Home Loan = $136.65
Payment Savings Over Five Year Period = $8,199.00
Remember that just because you select an interest only
mortgage loan program, it does not mean that you cannot
make payments toward your principal each month. It just
grants you the flexibility to decide if you want to
pay the additional expense.
Fixed Rate Interest Only Loan Products & Interest
Only Adjustable Rate Mortgages
Interest only mortgage products have become very
popular since they were introduced to the public.
Borrowers now have access to the ultra low rates that
3/1 and 5/1 interest only arms offer and the valuable
security of a 30 year fixed rate interest only home
loan. Every loan program has a degree of risk and
interest only loans can be more risky traditional
fixed rate loans. You should fully consider the risks
and rewards of the programs before making a decision.
No matter what type of program you are considering,
AAXA has the solution to help you meet your goals.
Please call 877-RATE-LOW (877-728-3569) today
to discuss your financing needs, or apply using our
online
mortgage application.
Interest Only Loan Options:
30
year mortgage interest only
3
year interest only mortgage loan
5
year interest only mortgage loan
10
year and 7 year interest only mortgages
