Interest Only

Interest Only loans allow borrowers to make lower payments on a fixed- or adjustable-rate mortgage by offering an interest-only period during the early years of the loan, followed by a fully amortizing period. As a result, borrowers may qualify for a larger mortgage, or direct more of their cash flow in the first years of their mortgage to other investments or expenses.  These loans are intended for financially informed borrowers who are prepared for the increased mortgage payment when the loan converts to a fully amortizing payment.

Customer Benefits Include:

• A low monthly payment during the interest-only period means more money to invest elsewhere.
• Greater purchasing power, coupled with more cash management flexibility
• Reduce future monthly payments without penalty when principal payments are made during the interest-only period

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