You're looking to buy a home, but you want to take more control over your loan payments each month. While the security from a 15 Year Fixed Rate Mortgage or a 30 Year Fixed Rate Loan might be appealing to some borrowers, if your job offers bonuses or commissions on a regular basis, an Interest Only Mortgage could be the best fit for your borrowing needs. A loan professional can help you find the best type of mortgage for your unique financial situation, and an Interest Only Mortgage could be the loan that meets your needs.
How can you tell whether an Interest Only Loan might be appropriate for you? Generally Interest Only Loans are beneficial if one of the following applies to you:
- You want to borrow money to purchase a home but you expect to sell your home or refinance prior to the interest-only period ending
- Your income relies heavily on bonuses or commission checks that come infrequently during the year
- You are looking for a first time mortgage and expect to earn significantly more income in the next few years
- You plan to invest your savings from interest-only rates by investing into something that would bring a higher rate of return
An Interest Only Mortgage isn't for every borrower, you may have questions about the types of mortgages that will best suit your individual needs, so it's advisable to contact a licensed mortgage specialist who can consult you on your loan options and can help you decide whether a Interest Only Mortgage will best meet your needs.