An interest only mortgage loan is most popular with homeowners who have homes that are rapidly appreciating in value and who want the lowest payment possible. Qualified borrowers make interest-only payments with the choice to make higher payments in order to reduce the principal. There are a variety of options, including making interest-only payments during the first 3, 5, or 7 years of these mortgages.
For most homeowners, paying down mortgage debt is the most effective way to build wealth. Nonetheless, some may build wealth more rapidly by investing excess cash flow rather than paying down their mortgage. For this to succeed, their return on investment must exceed the mortgage interest rate, since that rate is what they earn when they repay their mortgage.
Why choose an Interest-Only Loan?
Find out if an interest only loan is right for you. Take a moment to fill out an application or call to speak with an experienced Mortgage Consultant today.