Interest Only

Home Scouting Report

Home

Mortgage Resources

Featured Tools

Loan Info

Company Info

Other Services

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.

tomfrister@compmort.com -
Direct: (406) 370-9268 Fax: (630) 821-3668 Toll Free: (800) 650-5803

:: Apply Now :: Market Update :: Loan Programs :: Free Homebuyer Tips :: Homebuyer Education :: Pre-Qualify :: Request Loan Status :: Calculators :: Loan Process :: Reverse Mortgages :: FAQ :: Contact Us :: About Us :: Tell-A-Friend :: Credit Report :: Marketplace :: Home ::

Tom Frister, Sr. Mortgage Banker - MT License#1107 - MT Lender #187

Compass Mortgage Banking made easy in the following states: IL, MN, MS, MI TN, AZ, FL, IA WI, MT