Fixed Rate Interest Only Mortgages for Purchases
A Fixed Rate Interest Only Mortgage is one where the rate is established at the begining but the monthly payment is only paying the interest on the loan for the initial Interest Only period. Normally this is period is for ten years. Once the Interest Only period has expired, a new monthly payment is calculated that will pay off the principal and interest by the time the final payment is made. Once that new monthly payment amount is calculated, it will not change for the remainder of the term of the loan. There will be no changes to the interest rate during the period of this loan.
Maximum Loan to Value - Purchase Fixed Interest Only |
|
| Property Type | Maximum Loan To Value |
Primary Residence |
|
| One Family | 95% |
| Two Family | 90% |
| Three or Four Family | 80% |
Second Home |
|
| One Family | 95% |
Investment Property |
|
| One or Two Family | 90% |
