An interest only mortgage would be a fit for you if you are interested in the lowest possible monthly payment for an initial period of time.
- Lower monthly payments consisting only of interest during the initial interest only period.
- Available with select fixed rate and adjustable rate loans.
- Enjoy increased financial control by choosing to direct your cash flow into equity building principal payments or to other priorities based on your individual goals.
- If you are self employed, paid by commission, or a seasonal worker, the interest only mortgage provides the flexibility of low initial monthly payments along with the ability to pay down your principal as your cash flow permits.
Things to Consider:
- Your monthly mortgage payment may rise significantly when the interest only period ends. Your monthly mortgage payment is recalculated to include full principal repayment over the remaining years left on the loan.
- Without making principal payments, the only way to build your equity in your home will be through home price appreciation.
- If your home’s value declines, this further increases the risk of owing more than the property is worth.