STRATEGIC
Interest-Only Mortgage
Pay only the interest portion for an initial period, keeping monthly payments lower. After the interest-only period, payments adjust to include principal.
Lower Initial Payments
Interest-only period
5-10 yrs
Then fully amortizes
Monthly payment
Lower
During initial period
Principal paydown
Deferred
Starts after IO period
Best for
Cash flow
Investors or high earners
WHY BUYERS LOVE IT
Significantly lower payments during the interest-only period
Frees up cash flow for investments or other financial goals
Strategic option for high-income earners with variable compensation
Can be used to qualify for a higher purchase price
THINGS TO CONSIDER
No equity is built during the interest-only period
Payments increase significantly once the amortization period begins
Requires strong financial profile to qualify
Ideal for: Real estate investors, high earners with irregular income (bonuses, commissions), or buyers who want to maximize short-term cash flow while planning to sell or refinance before the IO period ends.
Settle down in your new home without a loan you had to settle for
MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER
Aisha Barbosa NMLS # 2401636 | LMP Financial NMLS # 2754084
Licensed in Massachusetts and Rhode Island
