Interest Only Loan

An interest only loan program is not always applicable for every homebuyer or for certain Texas refinancing homeowners! The applicant may be eligible for this product, but the reason for choosing this program must make sense! Please contact us for consultation!

• The interest only period is for the first 10 years of a 30 yr or longer mortgage loan.
• At the end of the interest only period, the loan "recasts" with the payment based on paying off in the last 20 years or "amortized" over the remainder of the loan term which increases the payment for the remainder of the term.

Some Reasons for interest only:

1. Financial strategy
2. Homebuyer is certain the property will be sold during the term of the loan
3. Borrower is assured of increased income in the future
4. Homeowner is certain of appreciation in value

Profile of a candidate for interest only loan:

1. Strong credit
2. Financially savvy
3. Strong or good assets
4. Or Homebuyer needing lower payment currently but expecting increase of income in the future

Lee Penn 281-701-1655