Interest Only Mortgage

An Interest only mortgage can be an excellent choice for some borrowers. Interest only mortgage loans offer the lowest payment possible because you are paying interest only and not paying the principle portion that pays down your mortgage balance. The interest only payment allows you to refinance at a much lower monthly payment and allows you to purchase more home. Most interest only mortgage programs allow you to make payments towards your principal at any time. The interest only mortgage loan program was originally for borrowers who had their income in seasonal swings. Now these interest only loans have become more popular and mainstream. An interest only mortgage calculator can compute for you the difference in savings when compared to a fully amortized mortgage. The interest only programs are good for business people who have bonuses paid quarterly or annually where they can pay down their mortgage when the timing is right.

Today borrowers choose interest only programs as a method of lowering their payments. With the programs today you can select a 30-year term, with the first 5 or 10 years interest only and the final 20 to 25 years fully amortized.
Most lenders have a pre-payment for the first 1-3 years and have caps on the amount your rate can change over the life of the loan. There are many program features including paying interest only or converting to a 30 or 15 year fully amortized mortgage during the first five year period.

RefinancingUSA specializes in interest only mortgage programs and will tailor your mortgage needs to your immediate and long-range financial plans.