Maximize Flexibility with Interest-Only Loans
Interest-Only loans allow borrowers to pay only the interest portion of their mortgage during an initial period, significantly reducing monthly payments early on. This makes them attractive for investors, borrowers with variable income, or those seeking short-term flexibility. At Team GWC of Citywide Home Mortgage, we guide clients on when interest-only financing makes sense, and how to prepare for principal payments once the full loan term begins.
At-a-Glance:
Min down: 10–20%
Credit fit: Strong
Occupancy: Primary, second, investment homes
Loan size: Conforming or jumbo
Pros: Low initial payments, cash flow flexibility
Cons: Payments increase when principal begins
FAQs
Pay only interest initially, then pay principal plus interest later.
Investors or short-term buyers needing flexibility.
Initial rates may be lower, but payments increase later.
Yes, many refinance before principal payments begin.
Ready to Start Your Mortgage Journey?
Apply online, schedule a quick call, or request a guided application with one of our licensed teammates.
