Alabama Interest Only Home Mortgage Loans
GET A LOW MORTGAGE PAYMENT!
INTEREST ONLY PROGRAMS FOR ALABAMA
Get a great interest rate on an Alabama interest only mortgage. We can also refinance your current Alabama interest only mortgage. Apply online or call one of our Alabama brokers toll free at 888-694-0455 and get sound advice from a mortgage professional.
This product has become a very popular choice for mortgages over $150,000. It is also a great option to a Jumbo loan and investment properties. The Interest Only Program is most popular with sophisticated borrowers and professionals.
This great product for Alabama allows you to only pay the interest on the loan for the first 10 years. The biggest advantage to this product is the ability to payoff principal much faster than traditional fixed rate amortizations, and keeping your monthly mortgage payment very low. This would be a big help in the investment market where you rent a home and charge higher rents. The majority of your first payments on a fixed term mortgage are applied to interest. Most people do not reduce their balance by very much in the first year, thus not gaining much equity. By making the same payment on the Interest Only Program, you will reduce your balance must faster gaining additional equity!
The Savings are even better versus a 30 year mortgage! The Alabama Interest Only Program can literally save you thousands on Dollars in just the first year. Borrowers on Jumbo loans can easily save over $20,000 in just three years!
This program is also a good option for people who are expecting an increase in income in the near future. It will allow you to buy a higher priced home now without a payment that takes up all your present income. When your income increases you can start paying off the principal!
This is a special program that can really benefit the borrower. However, if only the required payment is paid each month, NO reduction of Principal occurs (in other words the balance stays the same). Therefore, we only recommend this product for stable borrowers with conservative control over their finances. Give us a call or fill out our short online inquiry.
- Pay the interest only and the principal at your convenience
- Skip the starter home and buy the home you really want
- Buying a nicer home can build equity faster
- Invest the extra cash flow into a high yield account
- The interest is tax-deductible (other debt may not be)
There are many great reasons to buy a home with an Alabama interest only mortgage, but it is important to go over your goals with a loan professional to make sure this and other programs suit your current and future finacial situations. With the proper financial planning, you can take advantage of good debt, reduce taxes and take care of any bad debt (i.e. credit cards). This program may not be for everyone, but it is a great option for those who can take advantage of its flexibility.
Common buyers may have:
- Commission based pay that varies month to month
- Expected increase in income
- A high yeld investment account that out performs the loan rate
- A need to pay off high interest rate debt
- Business owners
- Property investors
Property investors often use this type of financing for fast turn-arounds because they need to minimize their cost and intend to keep the investment for only a short amount of time.
All programs have "Interest-Only" payment options and can be fixed for up to 10 years!