Interest Only

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.

Classic Home Mortgage, Inc. NMLS ID# 182005 - 330 Harrison Bridge Road Suite C - Simpsonville, SC 29680
Office: (864) 962-9121 Fax: (864) 962-6872 Toll Free: (877) 962-9121

Call or apply online today! If you prefer we contact you, just click on the e-mail address below and send us the phone number and best time to call you. Classic Home Mortgage proudly serves the states of South Carolina and Florida.

joe@chmsc.net

NAMB - National Association of Mortgage Brokers