An optional payment plan for certain types of real estate loans. Interest alone is paid on a mortgage loan for up to 60 months. This significantly reduces the amount due each month during the early part of the loan in comparison to required later payments. This approach tends to give more purchasing power upfront to someone who expects to earn much more money in later years.
Related information about interest only payments:
- Interest Only Mortgage Calculator
There are many loans available that give you the option of paying interest only for the first few years of the loan. See how much this type of loan could save you ...
- Interest-only loan - Wikipedia, the free encyclopedia
An interest-only loan is a loan in which, for a set term, the borrower pays only the interest on the principal balance, with the principal balance unchanged. At the ...
- Interest-Only Mortgage Payments and Payment-Option ARMs
Interest-Only Mortgage. Payments and. Payment-Option ARMs —. Are They for You? Board of Governors of the Federal Reserve System. Board of Governors of ...
- Interest Only Mortgages - Home Buying and Selling - About.com
Interest-only payments do not contain principal. Many of the interest-only mortgages available today feature an option for interest-only payments. Here is an ...
- Interest-Only Mortgage Tutorial - Mortgage Professor
This tutorial assesses the costs and benefits of the interest-only option, the situations where it might make sense, and the situations where it doesn't.
- Interest-Only Payment Feature
Whether you're looking for financial flexibility or the ability to manage different payment choices, Interest-Only payments open up a variety of options during the ...
- Interest-Only Loan: Advantages, Interest Only Payment Option
If a 30-year fixed rate loan of $350,000 at 7% has interest only payments for 5 years, the payment during the interest only period is $2,625.00. Starting in month ...
- TIAA-CREF - Interest-Only Payments
Use this form to begin receiving Interest-Only payments from your TIAA Traditional balance.