Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

First Financial Centers - 1311 S. Stephenson Ave - Iron Mountain, MI 49801
Office Phone: 906-776-3000 Fax: 906-776-2222
Cell Phone: 906-396-3000

:: Recently Sold :: Slideshow :: Seller's Resources :: Mortgage Payment Calculator :: Apply Now :: Pre-Qualify :: Purchasing :: Refinance :: Request Loan Status :: Calculators :: FAQ :: Forms :: Contact Us :: About Us :: Tell-A-Friend ::

First Financial is a licensed Michigan Mortgage Broker.

NAMB - National Association of Mortgage Brokers

Real Estate Info

Mortgage Resources

Featured Tools

Loan Info

Company Info

Interest Only