Credit Funding Center - Intrest Only Loan

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Finding the right mortgage company?

Select a state from the map on the left. Find the right mortgage company that can assit you in obtaining a "Interest Only Loan".

Select a state to the left, may Benefits of a Intrest Only loan?

What is the benefit of an interest-only loan? You get low monthly payments, which means more cash for other investments. Here's an example of a good use of an interest-only loan: You have lived in your home for two or more years. You can rent it for $500 more than your new interest-only payment after you take out a bunch of money for a big down payment on a new, bigger house. You move into your new, big house and rent out your old house for three more years, then sell that house for a lot more than you would have sold it for now, three years later, tax free. (As long as you live in your house for two of the five years you own it you can sell it without paying capital gains.)

Intrest Only Loan General Information?

Interest-only loans are available with 1 month or 3,5,7, & 10 year terms, all amortized over 30 years but the rates are only fixed for a time. You only pay the interest on the money you borrow. That means the principal balance remains the same, unless you choose to make principal payments, which you can do at any time.

To figure out a payment, let's say you borrow $333,700 for 7 years at 4.625%.

$333,700 x 4.625% = $15,433.63 (this is your yearly interest) now you divide the $15,433.63 by 12 months = $1286.14 (this is your monthly payment)