Interest Only Loan Overview:

Countywide Financial offers an “Interest Only” loan plan that lets you pay only the interest portion of your loan amount. This loan option can be an excellent choice if you are interested in having the lowest possible monthly payments or would like to have more purchase power in order to buy a home you might not have thought you could otherwise afford.

How It Works:

An "interest-only" loan lets you pay only the interest portion of the loan for a fixed period. Depending on the terms that you select, either 1-year, 5/1 ARM or 10/1 ARM, your monthly mortgage payments will be lower than those on a comparable 30-year fixed rate loan. Your monthly payments adjust at the start of the year the interest only term ends to cover principal and interest for the remaining term. In many cases, there is also a lower after tax cost since the entire monthly payment will generally be tax deductible as mortgage interest during the "interest-only" period. In addition, you can make optional principal payments at any time, which would lower your monthly "interest only" payment.

Benefits of an Interest Only Loan:
Interest only loans are ideal if you are looking for the lowest monthly payment available, you plan on staying in their home less than 10 years, or want to improve monthly cash flow and not have the shock of a Negative Amortization ARM with a growing principal loan balance. Other advantages include:

• Improved Cash Flow
  
• Tax Deductible Payments*
  
• More flexible payment options
  
• Lower interest rates
  
• Easier Loan Qualification process
  
• More purchase power – this means you can afford a more expensive home
  
• Home Purchase up to 100% financed (80/20 loan with no PMI)
  
• Enables you to benefit from greater investment appreciation by allowing you to purchase a home in a better location or of greater value in many cases.
  

Interest only loans are not for everyone. Call us today at 818-502-LOAN(5626) to speak with one of our experienced license loan professionals to find out if this program is right for you.

goto Top