Interest Only Jumbo Mortgage

 

Interest Only Jumbo Mortgage

 

With an interest only mortgage, you pay interest only payments for the first 5, 10 or 15 years. The monthly payments are much lower than they would be with a fully amortized loan during this initial period. However, at the end of the interest only payment period, you still owe the entire amount borrowed. Thus your payment at this point will jump sharply and remain high for the duration of your loan.

Advantages of Having Interest Only Mortgage Loan Payments

 

The advantage of an interest only loan is that it allows you to free up capital to invest at a higher return, pay down high interest debts, or other financial purpose. Also it may allow you to afford a house price level that is out of range with a fully amortized loan.

An Interest Only Jumbo Mortgage may be a good fit if:

* You expect to earn much in the near future and want to maximize your buying power now
* You have identified a safe interest that will have a higher return
* You are sure that you will keep the property for only a short time period