Interest-Only Mortgages

An Interest-Only Mortgage is one that provides you the opportunity to pay only the interest or the interest and as much of the principal as you want each month during an initial time period following the closing.

One of the most appealing aspects of this type loan is that you can control monthly mortgage payments during the interest-only time period. The monthly mortgage payment you make will be lower than with an interest-plus-principal payment.

With interest-only mortgages:

• Payments may increase up to an amortization amount, but the loan balance itself does not increase
• Interest-only payments are limited to the first 5, 10 or 15 years of the loan, and for the remainder of the term the loan is amortized
• There is no provision for negative amortization

Find out today if an interest-only mortgage is right for you.