A mortgage is called “Interest Only” when its monthly payment does not include the repayment of the principal for a certain period of time. Interest Only loans are offered on fixed-rate or adjustable-rate mortgages as wells as on option ARMs. At the end of the interest-only period, the loan becomes fully amortized, thus resulting in greatly increased monthly payments. The new payment will be larger than it would have been if it had been fully amortizing from the beginning. The longer the interest-only period, the larger the new payment will be when the interest-only period ends.

You won’t build equity during the interest-only term, but it could help you close on the home you want instead of settling for the home you can afford.

Since you’ll be qualified based on the interest-only payment and will likely refinance before the interest-only term expires anyway, it could be a way to effectively lease your dream home now and invest the principal portion of your payment elsewhere while realizing the tax advantages and appreciation that accompany homeownership.

Up to

80%

LTV - Purchase

80%

LTV - Rate & Term

75%

LTV - CASH OUT

30 - 40

Year Fixed
IO Options

$250K up to $8M

Apply Now!

# Apply For Interest Only

Interest Only Mortgages

As an example, if you borrow $250,000 at 6 percent, using a 30-year fixed-rate mortgage, your monthly payment would be $1,499. On the other hand, if you borrowed $250,000 at 6 percent, using a 30-year mortgage with a 5-year interest-only payment plan, your monthly payment initially would be $1,250. This saves you $249 per month or $2,987 a year. However, when you reach year six, your monthly payments will jump to $1,611, or $361 more per month. Hopefully, your income will have jumped accordingly to support the higher payments or you have refinanced your loan by that time.

Mortgages with interest-only payment options may save you money in the short-run, but they actually cost more over the 30-year term of the loan. However, most borrowers repay their mortgages well before the end of the full 30-year loan term.

Borrowers with sporadic incomes can benefit from interest-only mortgages. This is particularly the case if the mortgage is one that permits the borrower to pay more than interest-only. In this case, the borrower can pay interest-only during lean times and use bonuses or income spurts to pay down the principal.

Apply Now

650-200-2304

# Apply For Interest Only

Testimonials

"Kristin Howard is genuinely helpful, knowledgeable, and accommodating. She went out of her way to assist us not once but three times now. Home purchase, home equity loan to update and upgrade our home, and refinance. VA loans she’s hands down the best!"

"I had the absolute pleasure of working with Kristin Howard on three separate deals, and I can confidently say that she is an incredible professional. Each time, Kristin made the entire process seamless, stress-free, and efficient. Her attention to detail, clear communication…

"I’ve had the pleasure of working with Kristin Howard for the last two years. She has been a substantial asset to My business, No matter the loan size. She is dedicated to her work and Facilitating the process. If One is trying to obtain commercial financing, Residential, Or…

"Outstanding Service and Expertise! I had the pleasure of working with Silvia during my home purchase, and I cannot recommend her highly enough. From the very beginning, Silvia demonstrated exceptional professionalism, expertise, and genuine care for my needs. She took the ti…

"I worked with Silvia she was very knowledgeable and creative! Outstanding experience and highly recommended."

"Groves Capital is truly the best in the country. Their team is exceptional, providing outstanding service with unmatched professionalism. Highly recommended!"

"Kristin Howard & Travis Welfle were amazing. They were very responsive and diligent. Kristin walked me through the whole process and made the experience less stressful than I had anticipated. Thank you!"

"I have financed multiple properties with these guys, and it's been amazing every time. The process was seamless. And I got the best possible rate. They are incredibly professional and efficient. Highly recommended."

"John Murdock was such a pleasure to work with he went above and beyond to be sure everything was transparent. He made sure we had the knowledge on what to expect through the loan process. he is definitely an asset to your company. Will definitely use him again when needing f…

"We felt very supported in our loan and made the process very easy. Thank you to Chris and his team for the excellent communication and support."

# Apply For Interest Only

Why Should You Choose Us?

We're here to make the home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our simple Hard Money Rate Quote.

Customer Focused
Minimal Documentation

In-Houses Controls
Best Loan Services

Apply Now

650-200-2304

# Apply Now!

Our Core Purchasing Service

Whether you’re looking to purchase a new home or refinance your existing home,Groves Capital can provide all the help you need.