Interest-Only Loans: A Short-Term Lending Solution
Interest-only loans are a unique financing option available through the mortgage professionals at First Liberty Funding Corporation serving clients in San Diego, CA, and surrounding areas. With this type of loan, borrowers enjoy lower monthly payments compared with traditional home loans by paying only for the interest on the mortgage. This type of loan is great for clients who are looking for a lower-cost mortgage option presently with the option to continue to pay for the principal of the loan in the future. Interest-only loans have unique benefits to consider and are ideal for customers with specific goals in mind. Contact First Liberty Funding Corporation to discuss interest-only loans and other home loan options that may help you achieve your goals of home ownership.
What is an Interest-Only Loan?
An interest-only loan is a mortgage option in which the buyer agrees to pay off only the interest on the principal coast of a loan. This type of loan is set for a certain time period – usually 5-10 years – a term which is usually much shorter than a conventional mortgage. Interest-only loans usually have fixed rates. At the termination of the interest-only loan, clients will decide if they would like to sell their homes or begin to pay off the principal on their loans to become amortized loans.
Who is Eligible for an Interest-Only Loan?
Interest-only loans are not intended to be used like conventional mortgage options. They serve a specific purpose to allow borrowers to make minimal payments for a predetermined period of time while deferring larger payments.
This type of loan is attractive to younger buyers and clients who are unable to invest a substantial monthly payment currently, but are looking forward to an income boost in the years to come.
Interest-only loans are typically available to clients with good or better credit scores, although we evaluate candidacy on a case-by-case basis. If you have limited or poor credit history, we can help you explore other options. We offer several alternative lending options for clients looking to own a home and may not qualify for conventional loans.
Getting Started on the Path to Home Ownership
The certified mortgage professionals at First Liberty Funding Corporation provide complimentary consultations for clients exploring their home financing options. We can provide fast approval and the personal attention that big banks simply cannot. If you are considering purchasing a home in San Diego, CA, or surrounding Southern California, our team would like to speak with you. Learn more about the possibilities of an interest-only loan and begin the approval process by contacting us.