Interest Only Refinance Loan
An “Interest Only” Mortgage loan is an alternative to traditional fixed rates. These home loans allow a consumer to make Interest Only payments during a defined period of time for the loan. These programs can offer consumers increased purchasing power, and maximum flexibility of cash flow. You can save significant amounts of cash for investment, savings, or other expenditures during the interest only term of your loan. This is also a way to maximize the tax deductibility of your payments, with more funds available for paying down higher cost, nondeductible consumer debt. With these loans, the minimum payment required covers interest only-you decide how much or how little of the principal to repay each month.
These loans are not for everybody however, if you are self disciplined, have a good understanding of the time frame you will be in your home and understand the potential risks then these products may provide an extremely attractive option to many homeowners.Types of Interest Only Loans:
- 5 Year Arm
- 7 Year Arm
- 10 Year Arm