Interest Only

Home

YOU Magazine

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.

1 Forge Village Road, Suite 2B - Groton, MA 01450
Groton, MA Office: 978-448-1285 eFax: (508) 355-5343
Cell Phone: (617) 461-2970 EMAIL: acardinali@mortgagemasterinc.com

:: Apply Now :: Loan Programs :: Purchasing :: Refinance :: No Money Down :: 2009 HOUSING STIMULUS TAX CREDIT :: Summary of Housing and Economic Rec Act :: Request Loan Status :: Calculators :: Loan Process :: FAQ :: Forms :: Contact Us :: About Us :: Tell-A-Friend :: Home :: YOU Magazine ::

You can find great local Groton, Massachusetts real estate information on Localism.com Tony Cardinali is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.

Mortgage Master, Inc., Groton, MA Branch Lender/Broker# (MC5439), (NH-15434-MB-BCH)

Loan Originator# MLO21336 - Massachusetts, NH21336 - New Hampshire