 |
|
|
 |
Interest Only Loan |
|
|
|
|
|
Lowest rates from over 50 lenders displayed:
|
| Loan Name |
Rate |
Pts |
APR* |
As of |
| IO Year 7 |
5.375% |
2.9 |
5.63% |
2007-09-19 |
| IO Year 10 |
5.5% |
2.9 |
5.76% |
2007-09-19 |
| IO Year 15/30 |
5.62% |
2.0 |
5.87% |
2007-09-19 |
| IO Year 10/30 |
5.5% |
2.0 |
5.76% |
2007-09-19 |
| IO Year 5 |
5.25% |
2.5 |
5.5% |
2007-09-19 |
| IO Year 3 |
5.375% |
2.5 |
5.64% |
2007-09-19 |
| Stated IO Year 10 |
6.0% |
2.75 |
6.25% |
2007-09-19 |
| Stated IO Year 10/30 |
5.75% |
2.0 |
6.01% |
2007-09-19 |
| Stated IO Year 15/30 |
5.75% |
3.0 |
6.0% |
2007-09-19 |
| Stated IO Year 3 |
5.25% |
3.0 |
5.51% |
2007-09-19 |
| Stated IO Year 5 |
5.5% |
3.0 |
5.75% |
2007-09-19 |
| Stated IO Year 7 |
4.87% |
3.0 |
5.13% |
2007-09-19 |
| Jumbo IO Year 10/30 |
6.75% |
2.0 |
7.01% |
2007-09-19 |
| Jumbo IO Year 5 |
6.5% |
2.0 |
6.75% |
2007-09-19 |
| Jumbo IO Year 7 |
6.625% |
2.0 |
6.89% |
2007-09-19 |
Click here for Interest Only Loan Rates
Use our Interest-Only Mortgage Calculator
Two loan programs that are popular are the 3 Year Interest Only Loan Programs and 10/30 Year Interest Only Loan Programs.
The 3 year interest only loan is popular because it allows you to fix the rate for the first three years of the interest only loan, and the interest only feature means that your overall monthly payment can drop to 50% of your current mortgage payment if you are on a 30 year fixed mortgage payment. The interest rates are incredibly low, oftentimes in the 3% range, and there are caps on the interest only loan programs so the interest rate can only increase up to a maximum of 5% or 6% above the starting rate. A great program for the borrower looking to minimize the monthly payment while still securing a fixed rate on your interest and not risking negative amortization. Also, interest only loan programs typically come without a prepayment penalty so you can refinance later if you think the rates are rising too quickly.
The 10/30 year interest only loan is popular for borrowers looking to take cash out, but who want the interest only feature on the loan so that their overall payment will decrease. With the 10/30 year interest only loan, the first 10 years of the mortgage are interest only, and the last 20 are principal and interest so you end up paying off the entire mortgage in 30 years. This program provides low monthly payments, and maximum stability.
Here's an example: Let's say you still owe $80,000 on a $150,000 house, and you want lower interest rates. You also want $20,000 cash to add on a room for the baby or send your child to college. You can refinance the mortgage for $100,000. That way, you get better interest rates on the $80,000 that you owe on the house, and you get a check for $20,000 to spend as you wish, and because it’s an interest only loan, your overall payment may well be lower than before. 125% LTV Home Equity Second Mortgage Loans
* |
 |
|
|
|
|
