The Ins and Outs of Interest Only Mortgages
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.
have several payment options
for a higher loan amount
at the interest only payment
to pay the full
· Interest only
payments for up to
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.
For more information or to apply, please contact TruWest at (AZ) 480.441.5900 or (TX) 512.996.4000.
subject to credit approval.