Interest Only is all about choices... an ARM that doesn't leave your hands tied! With an interest only loan, homebuyers choose their monthly payment and either qualify for more home, or have more cash in reserve for investment, paying down higher-cost debt, or making home improvements. Note: This is not a negative amortization product, your principal balance will never increase! Interest Only loans offer you:
	Potential for lower monthly payments: for the first 10 years of the loan you can opt to pay interest only-plus any portion of the principal you wish.
	The opportunity to afford your dream home-buy up to 25% more home with Interest-Only monthly payments.
	Tax deductibility benefits
	A wealth of money-management opportunities, with savings for: Other investments, including high-yield and tax-deferred savings or maximizing your retirement contributions Pay off high-interest, non-tax-deductible debts Home improvements, tuition costs, or a dream vacation

Here's how it works:
Take advantage of this innovative approach to home financing and realize the double benefits of more affordable payments plus improved cash flow. Here's how it works: each month you choose the payment amount. You can make the minimum interest-only payment in order to maximize your available cash for other uses or allow you to qualify for more home at a payment you can afford. Or you are free to pay down any portion of the principal you wish--it's your decision. Either way, your principal balance will NEVER increase.

BENEFITS OF "INTEREST ONLY" HOME LOANS:

Interest Only loans provide exciting benefits to homeowners including :

• Greater Purchasing Power

• Payment Flexibility

• Reduced Qualifying Income

• Fixed or Adjustable Rates

• Unlimited Cash Out *

Greater Purchasing Power

A large number of  homebuyers expect to see income rise over the next few years and today's markets also make a good argument for investing in real estate before the stock market.  With many "Interest Only" home loan programs you can benefit from lower qualifying payments enabling you to buy more home while still maintaining the security of a fixed rate for a defined period of time.  Apply now to learn more today!

Payment Flexibility

Most lenders do not impose restrictions or penalties should you wish to start paying down the principle loan balance at times convenient  to you.  Even  if your loan has a prepayment penalty many lenders will still even let you pay up to 20% of your loan balance during any 12 month period without triggering the prepayment clause.  Apply now to learn more today!

Reduced Qualifying Income

Much like the "greater purchasing power" advantage this feature will allow many home buyers to qualify for a bigger home without having to prove a "bigger salary".  Most lenders state that if your initial interest rate is fixed for a period of three (3) or more years than the borrower can qualify on the "interest only" payment.   Apply now to learn more today!

Fixed or Adjustable Rates

"Interest Only" loans come in a variety of fixed and adjustable rate options.   Apply now to learn more today!

Unlimited Cash Out *

This is probably the most exciting feature of "Interest Only" loans.  Fixed rates often have strict limitations on how much a homeowner can "cash out" when refinancing a home.   We have seen cases where the homeowner wanted $300,000 and banks tried to charge a higher rate since a fixed rate would only allow $150,000 of cash to the borrower.  Interest Only loans were created for the wealthy many years ago and this was one benefit worth waiting for.  Although the unlimited cash out feature is limited to certain lenders and eligibility requirements there is a program available without incurring a penalty for those of you looking to take large sums of equity from your home.  Apply now to learn more today!

Please remember that it is important to note that these loans are not for everyone and we highly recommend you speak with a financial advisor concerning your short and long term goals before entering into an agreement with any financial institution, broker or lender.

INTEREST ONLY HOME LOAN PROGRAMS

Libor loans are loans based on either a fixed or adjustable rate tied to the libor index. LIBOR is an abbreviation for "London Interbank Offered Rate," and is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. Choosing a LIBOR index based mortgage loan and paying "interest only" allows the homeowner a number of benefits over fixed rates.  Some of the most common Libor mortgage loan programs available are:

One Month Libor Loan - The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan however the index value will be adjusted every month, which will cause your interest rate to be adjusted accordingly.

Six Month Libor Loan - The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan however the index value will be adjusted every six months, which will cause your interest rate to be adjusted accordingly.

One Year Libor Loan - The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan however the index value will be adjusted on an annual basis which will cause your interest rate to be adjusted accordingly.

find an Interest Only mortgage lender Today!

3 Year Libor ARM - The interest rate is fixed for the first three (3) years of the loan term and your only obligation are interest only payments.  during years 4 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point - (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 37) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

5 Year Libor ARM - The interest rate is fixed for the first five (5) years of the loan term and your only obligation are interest only payments.  during years 6 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point - (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 61) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

7 Year Libor ARM - The interest rate is fixed for the first seven (7) years of the loan term and your only obligation are interest only payments.  during years 8 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point - (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 85) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

10 Year Libor ARM - The interest rate is fixed for the first ten (10) years of the loan term and your only obligation are interest only payments.  during years 11 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point - (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 121) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

30 Year Fixed Rates (10 Years Interest Only) - A fixed rate for 30 years where the first 10 years are interest only payments. After the initial period has passed (121st month) the unpaid balance is fully amortized over the remaining term of the loan however the interest does not change.  Most lenders allow the borrower to make voluntary principal payments during the interest only period.

30 Year Fixed Rates (15 Years Interest Only) - A fixed rate for 30 years where the first 15 years are interest only payments. After the initial period has passed (121st month) the unpaid balance is fully amortized over the remaining term of the loan however the interest does not change.  Most lenders allow the borrower to make voluntary principal payments during the interest only period.

Request an Interest Only Home Loan Quote Today!