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Interest Only Mortgage

With an interest only mortgage loan you only pay the interest on the monthly payments for a pre-determined time period (generally five to ten years). At the end of the initial interest only period generally, your balance is amortized over the remaining term. For example, if you had a 5-1 interest only ARM that had an interest only period of ten years, after this initial interest only period the loan will change to a 20 year mortgage where you are paying principal and interest on your monthly payment.

An interest only mortgage is a great choice for someone who expects to earn a lot more within a few years or someone who expects to sell the home within a few years and is confident the home will appreciate.

LowerRates.com can help you obtain the best interest only mortgage terms with the lowest mortgage rate for your new home purchase or refinance. LowerRates.com works exclusively with top nationwide direct mortgage lenders. Please complete our online mortgage quote form to obtain a rate quote and pre-approval for your interest only home purchase mortgage or interest only refinance.