The 30 Year Fixed Interest Only Mortgage
- Question: What are the advantages of the 30 year fixed rate interest only mortgage program?
- Answer: This program has a very attractive low interest-only payment combined with the stability of a 30 year fixed rate mortgage. In addition, the interest only period lasts for 10 years. This is a fantastic option for borrowers looking for affordability without the risk associated with an adjustable rate program. We highly recommend this product.
| Topic | Guideline |
| Max Loan Amount and LTV - Primary Home | Purchase and Refi w/No Cash Out: $417,000, Max LTV: 95% Cash Out Refinance: $417,000, Max LTV: 90% |
| Max Loan Amount and LTV - Vacation Home | Purchase and Refi w/No Cash Out: $417,000, Max LTV: 95% Cash Out Refinance: $417,000, Max LTV: 90% |
| Eligible Borrowers | U.S. Citizens, Permanent Resident Aliens |
| Payment Changes | During the first 10 years of the loan the payment will be interest only based on the outstanding balance. For the remaining 20 years the payment will include principle and interest and will amortize over the remaining term. |
| Principle Reductions | Principle reductions may be made any time during the initial 10 year interest only period. The next scheduled monthly interest payment will be calculated on the adjusted outstanding principle balance. Any principle reductions made after the 10 year interest only period will not cause a recalculation of the monthly payment. |
| Credit Score Requirements | Non-Specific. Flexible. Qualification is determined by all available borrower criteria. |
| Qualifying Ratios | Non-Specific. Flexible. Determined by all available borrower criteria. |
| Max Loan Amount | MAX LTV | MIN Credit Score |
| $500,000 | 95% | 660 |
| $650,000 | 90% | 660 |
| $1,100,000 | 80% | 700 |
| $1,100,000 | 70% | 660 |
| $1,500,000 | 75% | 700 |
| $2,000,000 | 70% | 720 |
| $2,000,000 | 60% | 700 |
Please feel free to contact us with any questions that you may have regarding the Fixed Rate Interest Only Program. We will be happy to assist!