Interest Only Mortgage

Interest only home loans can be a great way to free up your cash, allowing you to invest it towards other things such as retirement, college tuition or a rainy day fund.

Who Should Consider An Interest Only Mortgage?

  • Home buyers who are pretty certain their income will grow, but would like the advantage of buying more home now.
  • Home buyers who know their time frame for home ownership, but are more interested in lower monthly mortgage payments than building equity.
  • Home buyers who want to invest their money elsewhere rather than in their home.
  • Home owners who are ok with the prospect of their monthly mortgage payment going up when the interest only term ends.
  • People who own investment homes and rent them out.

To see if an interest only home loan is right for you, call Jody at (702) 769-1791 today or find a home loan expert near you.

Other Items to Consider with Interest Only Mortgages

While interest only home loans give you access to low monthly payments during the initial term of your loan, your monthly payments will rise in order to pay off the principal of your loan when this term ends.

Due to this, some homebuyers can overextend themselves and may be unable to pay the higher monthly payment. If you don’t expect your income to increase in 5 to 7 years or you think you’ll be unable to make the larger payments later on, you may want to consider a different loan option like a 15 or 30 year fixed rate mortgage.

In addition, if the value of your home does not increase while you have an interest only home loan, then it may be harder to refinance your mortgage. Your local home purchase expert can discuss these additional considerations with you further.