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30 Year Fixed Interest Only Mortgage Programs
Please note that that 30 year interest only loans are not listed in the rate survey below although there is a good chance that some of the lenders and brokers do offer these products. Please contact the various providers directly for program information.
Are
you looking to keep your monthly mortgage payment
to a minimum without giving up the security of a long
term fixed rate product? If this sounds like your
ideal scenario, then a interest only 30 year loan
might be the right product for you. 30 year interest
only mortgages typically come with a ten year (often
referred to as a 30/10 year interest only loan) or
fifteen year fixed (30/15) interest only period. After
the 10-15 interest only period expires, the loan is
then re-amortized so that the payment includes both
principal and interest being paid for the remaining
term of the loan. The rate does not change after the
interest only term which makes the products less volatile
than adjustable rate mortgage products. Terms and
conditions vary by lender so be sure to ask a mortgage
professional for details of their various offerings.
Request 30 year interest only loan information:
- Call and speak with one of the companies listed
in the survey.
- Visit the web sites for the companies by clicking
on the listings in the survey.
How much could one save with a 30 year fixed interest
only mortgage vs. a traditional fixed rate mortgage
(P&I)? Let’s take look at one example:
Traditional 30 year fixed rate mortgage
Rate: 6.375%
Loan Size: $200,000
Monthly principal and interest payment: $1,247.74
Interest only loan 30 years
Rate: 6.500%
Loan Size: $200,000
Monthly interest only payment for first 10-15 years:
$1,083.33
With the interest only option, you would save $164.41
per month. That would translate to a total savings
of $19,729.00 over the first ten years of the loan.
However, you would still owe the full $200,000 loan
balance unless you made additional principal payments
from time to time. The beauty of these loans is that
you may likely be able to do just that. The months
where you can make extra payments you can choose to
do so and the months were you prefer to spend money
elsewhere, you can go that route as well. The choice
is yours to make. Once again, terms and conditions
may apply so ask your mortgage professional for details.
Also please note that the example scenario above is
for educational purposes. You should consider APR
and closing costs before selecting a product or provider.
Is a 30 Year Mortgage Interest Only Right For
You?
Interest only loans may be ideal for those who anticipate
future earnings growth and for those who like flexibility
in managing their personal finances. You should speak
with a mortgage professional to discuss the benefits
and pitfalls of these products to ensure that you
are making a well educated decision.
Other Interest Only Loan Options:
3
year interest only loan
5
year interest only mortgage loan
10
year and 7 year interest only mortgages
