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.
| 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
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- Higher rates
- Principal loan balance will not decrease during the interest only payment period
- Payment will be higher for the remaining term
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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.
Full Time Kingman Arizona Real Estate Sales, Golden Valley Land Sales, Commercial Property Sales, Ranch Land Sales, Commercial and Residential Investment Land Services, Industrial Property Specialist, White Hill Land Sales, Yucca Land Sales, Real Estate sold by Tim Nutt, Tim Nutt Your Kingman Arizona Real Estate Professional.
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