Interest Only

Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

:: My Listings :: Recently Sold :: Multi Language Search :: MLS Search :: Buyer's Resources :: Dream House Finder :: Free Buyer Reports :: Seller's Resources :: Market Analysis :: Free Seller Reports :: Calculators :: Rent Vs. Buy Calculator :: Marketplace :: Schools :: Weather :: Newsletter :: CPA & Insurance CO. :: Personal Info :: Guest Book :: Contact :: Interest Only Payment Option Calculator :: Privacy Policy :: Loan Programs :: Interest Only :: Imperfect Credit? :: Payment Option Arm Calculator :: ARM Loans :: Home Equity Loan :: Mortgage Rates :: Pre-Qualify :: Monthly Payment Calculator :: Mortgage Payment Calculator :: Credit Report :: Debt Consolidation Calculator :: Refinance Calculator :: Credit Grade Calculator :: MLS Search ::

An Equal Opportunity Company. Equal Housing Opportunity.
All rights reserved.

e-PRO

TAMB - Texas Association of Mortgage Brokers