Compass Mortgage - Interest-Only Loans

Lower Your Monthly Payments With Interest-Only Loans

Fixed-rate mortgages with interest-only payment options can be the unequivocal best choice for some borrowers. They are designed to offer a lower monthly payment, as you are not required to pay anything toward the principal.

Because of the lower payment, the interest-only loan may mean that you can qualify for more home – an important feature if you can’t satisfy the documentation requirements for all of your income.

The best thing about an interest-only program is how the minimum monthly payment goes down as you reduce what you owe on the mortgage. On a normal amortizing mortgage, principal reductions shorten the term of the mortgage but the payment stays the same.

On an interest-only mortgage, the interest rate may still be fixed. But as you pay down the mortgage balance (maybe from an inheritance or sale of a property), the minimum payment goes down with it.

This type of loan is a good choice for borrowers who receive significant bonus or commission income that could be applied toward reducing the principal balance in large chunks. It’s also a very good choice for borrowers who will be selling other property to pay down what they owe, because the minimum payment will go down automatically with the principal reduction.

Interest-only programs are available across the full spectrum, from fixed rates for 30 years to monthly adjustable.

If you would like additional information about Compass Mortgage and the loan programs we offer, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

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