Interest-Only Mortgages

An Interest-Only Mortgage from Bank of Internet USA offers several unique benefits that may just make it the ideal type of home loan for you. For the length of the interest-only term, it's up to you whether you make a principal payment or pay only the interest on your loan. How's that for flexible?

Features of an Interest-Only Mortgage

Our interest-only mortgages are a popular mortgage option among both and homebuyers whose income fluctuates from month to month. An interest-only mortgage is highly unique among mortgage options in that it:

  • Offers interest-only payment terms for 5-7 years
  • Allows for flexible monthly payments during the initial interest-only term
  • Gives borrowers the opportunity to make principal payments when they choose to
  • Will result in a higher monthly payment after the interest-only term has passed

Call 1.888.546.2634 to speak to a knowledgeable Mortgage Consultant who can provide you with the interest-only mortgage loan that is just right for you.

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What Is an Interest-Only Mortgage?

An interest-only mortgage is one in which the borrower has the option to pay only the interest on the principal amount borrowed for a predetermined period of time. This interest-only payment term is usually between 5 and 7 years after he or she . After the term is over, the payment converts to a principal and interest payment that is fully amortized over the remaining term of the mortgage.

The Benefits of an Interest-Only Mortgage

  • Flexible monthly payments during the initial interest-only term.
  • Allows borrowers to make principal payments when they choose to. Borrowers with fluctuating monthly income levels often enjoy this flexibility.

What to Be Conscious of with an Interest-Only Mortgage

  • The interest-only payment does not pay down the principal balance.
  • The payment following the interest-only period will be higher than it would have been under a fully amortized loan that was originated at the same time.
  • The monthly payment will increase after the initial interest-only period. However, you may be able to .