Interest Only Mortgages at Cleveland Ohio Mortgage
Definition – Interest only mortgages are home loans where the minimum payment on the loan is only interest. You would not take anything off from the principal unless you paid over the minimum payment. This loan is calculated differently than an amortized loan. You only pay interest on what you owe rather than paying interest on the initial loan amount. Interest only mortgage payments can be figured out by multiplying the interest rate times the loan amount and divide it by twelve. (ie. If you get a $10,000 and put it on your $100,000 mortgage, you would now only be paying interest on $90,000)
Advantages – You will only be paying interest on what you owe on the loan. This is a great loan for people in sales and/or commission based jobs. The interest only payment will be lower than the 30-year amortized payment. This is also a great loan for investment property. It will help maximize cash-flow.
Disadvantages – If you do not have the discipline to put extra money on to the payment, you will never build equity in your house other than what the house appreciates at, if any.
Back to Home Loan Programs
Here are some of our adjustable rate loan areas in Ohio: Canton, Cincinnati, Columbus, Cleveland, Akron, Toledo, Dayton, Hamilton, Lima and Youngstown