Interest Only Mortgages

An interest only mortgage is a loan with a regular monthly payment that only applies toward the interest. It can have either a fixed or an adjustable rate, or some combination of the two. If you want to purchase a home but you're limited by your income, an interest only mortgage may be right for you.

Many home buyers find that although they can make a small profit by selling their homes after a few years, they could realize even more by investing the money in stocks or other business ventures. By taking advantage of an interest only mortgage from American Mortgage Specialists, these purchasers can invest their money for a better return.

Interest only mortgages are the only loans that realize a reduction in payment in the first month after an extra payment toward the principal. This feature makes them attractive to buyers who may be waiting to sell a previous residence. Applying the proceeds from the sale of the first home to the interest only mortgage will make the payment drop significantly if you choose a mortgage with this option.

Another advantage of interest only loans is that if your equity grows substantially during the time that you own the home, it won't matter whether you've paid down the principal or not. If you only own the home for a few years, you wouldn't have paid much on the principal anyway with a standard fixed-rate plan.

For more information about American Mortgage Specialists' interest only loans, complete our Quick App or call one of our loan analysts at 1-866-385-5450. Or email us directly at info@amsaz.com.