Interest-Only Mortgage (ARM) Programs

An interest-only loan is a mortgage that gives you the option of paying just the interest or the interest plus as much principal as you want in any given month.

What Are Interest-Only Mortgages?

Offered in fixed-rate and adjustable-rate forms, these loans give you the opportunity to pay just the interest due each month on the mortgage, or the interest plus as much principal as you’d like.

How Long Are Interest-Only Mortgages?

The interest-only option typically only lasts for a maximum of 10 years at which point principal must begin to be repaid.

Who Are Interest-Only Mortgages For?

Individuals who have fluctuating monthly incomes (such as someone paid on commission) and need the flexibility at times to pay as little as the interest owed each month.
People who would like to get into a more expensive house but need a lower monthly payment to do so.
Buyers/Refinancers who think they’ll only be in the home for a short period of time – usually 5 years or less.
People with other uses for their money, such as investing in high yield savings accounts or paying off debt.

Remember that the mortgage loan programs available to you will depend on a number of different factors including your financial situation and location.