The Lowest Monthly Payments
Loan Approval for a Larger Home Purchase
Greater Monthly Cash-Flow Flexibility
30-Year Fixed Rates or 3/1, 5/1, and 7/1 Adjustable Rates
0% Down Payment Option
Reduced Income Documentation Programs
Condos & Investment Properties
Jumbo Loans
You will be amazed by the financial flexibility that our Interest-Only Mortgage provides. This innovative program allows you to pay only the interest portion of your monthly mortgage payment for 10 years on a 30-Year Fixed Rate loan and a 3/1 ARM. Our 5/1 ARM features a choice of either a 5 or 10 year interest-only period and our 7/1 ARM offers a 7 year or 10 year interest only period, depending on the program. Once the interest-only period ends, the unpaid principal balance will amortize for the remaining term. If you prefer to build more equity each month, you can simply make a principal payment, of any size, in addition to interest. As a result, future interest-only payments will be based on the reduced principal amount remaining.
With an interest-only payment option, you can qualify for a larger home while enjoying all the benefits of a dramatically reduced mortgage payment during the interest-only period. Now you can buy that first home or trade up to your dream home, without increasing the amount of money allocated toward a monthly mortgage payment.
The Interest-Only Mortgage is the ultimate cash-management tool. Instead of making a mortgage principal payment, you can choose to keep the extra cash that would otherwise go toward principal and invest it in higher yielding alternatives or use it to meet any other financial needs. Or, if you expect to receive a future lump sum and want the choice to pay down principal, you will see an immediate decrease in your monthly mortgage payment. No other type of mortgage can offer this kind of flexibility! Plus, you may qualify for a larger home while enjoying all the benefits of a dramatically reduced mortgage payment during the interest-only period.
If this loan program sounds interesting to you, contact me today!
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Truth in Lending Disclosures:
The following are examples of the terms that may be available for loans in the amounts shown below. The actual APRs, numbers and dollar amounts of monthly payments may differ from your loan. APRs are accurate as of 3/18/04. However, loan programs are subject to cancellation or change without notice. Restrictions apply. Some products may not be available in all states. Approval subject to satisfying our customary underwriting requirements for the loan program.
Conforming Fixed Interest-Only Example:
30 year tern (360 payments), no points, 80% financing, $300,000 loan amount, monthly interest-only payments of $1,374 for 10 years. APR of 5.497% for the life of the loan. After the initial interest-only period, the monthly payments will consist of a principal and interest payment for $2,063 for 20 years, assuming no principal reduction during those first 10 years.
3/1 ARM Interest-Only Example:
30 year tern (360 payments), no points, 80% financing, $300,000 loan amount, monthly interest-only payments of $969 for 10 years. Assumes APR of 3.875% for the life of the loan. After the initial interest-only period, the monthly payments will consist of a principal and interest payment for $1,798 for 20 years, assuming no principal reduction during those first 10 years. Initial interest rate may increase after the first three years and annually thereafter for the balance loan term.
5/1 ARM Interest-Only with 103% Financing Example:
30 year tern (360 payments), no points, 103% financing, $422,300 loan amount, monthly interest-only payments of $2,305 for 10 years, including a $458 monthly Mortgage Insurance premium. After the initial interest-only period, the monthly payment will consist of a principal, interest, and Mortgage Insurance premium of $2,916 for 20 years, assuming no principal reduction during those first 10 years. The Mortgage Insurance premium is approximately $70/month for the remaining 20 years. Assumes effective APR, including Mortgage Insurance, of 6.185% for the life of the loan. Initial interest rates may increase after the five years and annually thereafter for the balance of the loan term.
5/1 ARM Interest-Only Example:
30 year tern (360 payments), no points, 80% financing, $300,000 loan amount, monthly interest-only payments of $1,094 for 10 years. Assumes APR of 4.375% for the life of the loan. After the initial interest-only period, the monthly payment will consist of a principal and interest payment of $1,878 for 20 years assuming no principal reduction during the first 10 years. Initial interest rate may increase after the five years and annually thereafter for the balance of the loan term.
7/1 ARM Interest-Only Example:
30 year tern (360 payments), no points, 80% financing, $300,000 loan amount, monthly interest-only payments of $1,076 for 10 years. Assumes APR of 4.303% for the life of the loan. After the initial interest-only period, the monthly payment will consist of a principal and interest payment of $1,866 for 20 years assuming no principal reduction during the first 10 years. Initial interest rate may increase after the five years and annually thereafter for the balance of the loan term.
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