Control the terms of your mortgage. With an interest-only mortgage, you can choose to pay the interest only or make a principle payment amount. This customization is helpful for borrowers with fluctuating income who want more control of their terms. Benefits of an Interest-Only Mortgage:
- Offers initial interest-only payment options
- Allows for flexible monthly payments during the initial interest-only term
- Gives borrowers the opportunity to make principal payments when they choose
- Custom loan tailored for specific needs
What Is an Interest-Only Mortgage?
An Interest-Only Mortgage is a home loan that gives you the option to pay only the interest on the principal amount for a set period of time. After the interest-only term is over, the payment converts to a principal-and-interest payment that is fully amortized over the remaining term of the mortgage.
Want additional information? After you apply, an experienced Axos Bank Mortgage Specialist will review all your options with you.
Things to Consider with Interest-Only Mortgages
Interest-Only Mortgages can provide some unique benefits, but they are not right for everyone.
Things to be conscious of when considering an interest-only option:
- The interest-only payment does not pay down the principal balance
- The monthly payment following the interest-only period will be higher than that of a fully amortized loan that was originated at the same time
- The monthly payment will increase after the initial interest-only term ends.