A mortgage is an interest only mortgage if the scheduled monthly mortgage payments consist of interest payments only, with no payment toward the principal. An interest only option lasts for a specified period, usually 5 to 10 years. After that time, the unpaid balance is amortized for the remaining term.
Interest Only Loans Allow Borrowers to “Buy More House”
One advantage of an interest only mortgage is that it allows a borrower to buy more house than what initially might otherwise have been possible. It has advantages for a borrower who expects to increase his salary substantially over the course of the loan.
Interest Only Loans Increase Cash Flow
Since a borrower has lower monthly payments with an interest only loan, he has the flexibility to invest his cash elsewhere. Of course, the return on investment must exceed the mortgage interest rate for this strategy to make sense.
Interest Only Options Available for Construction and Super Jumbo Loans
Cyan offers interest only financing for construction and Super Jumbo Loans. Welkin’s trusted and experienced loan officers can help you figure out if an interest only mortgage loan might be financially beneficial to you.
Contact a Cyan Mortgage Loan Specialist today at 212-949-4363 to find out if you qualify for an interest only loan.
