Interest Only Loans

An interest only loan is a great tool to consider when searching out your financing options.  This type of loan allows you to pay the interest portion of your payment for the first 10 years of the loan, and greatly reduces your required mortgage payments.  Because the value of your home is going to increase (in most cases) regardless of how much money you pay towards the principle of the loan, an interest only payment frees up cash that can be used to maximize 401K contributions, to put money into an IRA or other investment, to save for college or to pay down debts.

In most situations, interest only loans are some type of adjustable rate mortgage.

This option should be cautiously considered and is not for everyone. An interest only loan makes the most sense for someone who is . . .

• borrowing more that $200,000 (although not required)
• putting down at least 10% (although not required)
• planning on being in the house for 5-7 years
• financially disciplined to take advantage of monthly savings

Hillside Lending, LLC offers interest only loans as a way for customers to maximize their income and cash-flow -- allowing customers to take advantage of the interest deduction of their mortgage, while taking full advantage of their investments, not as a means for qualifying customers for more expensive homes.

For more information about qualifying for an interest only loan, please call or send an email.