Rather invest your money in high-yield and tax-deferred
savings? Need extra cash to pay off high-interest, non-tax-deductible
consumer debt?
The Interest Only feature offers:
- Reduced monthly payments
With our Interest-Only feature, your monthly payment consists of interest
alone for the first three, five, seven, ten years. 30 year fixed rate also
available. This increases your cash flow - making homeownership more
affordable.
- Financial diversity
Redirect your cash flow to supplement your savings or investment funds,
maximize your contributions to 401k or other tax-deferred retirement
accounts, or pay off any higher-cost, non-tax-deductible debt. It's your
money to use as you see fit.
- Greater tax deductions
Because payments are interest-only, you may benefit from larger interest
deductions during the interest only period.*
- Flexibility
You are welcome to make principal payments during the "interest only"
period, but are not required to do so.
Best for people who:
- Are very focused on money management
- Want to reduce their monthly mortgage payment
- Do not intend to be in their homes more than a few years
Interest only loans as the name suggests, means you pay interest only for
the first three, five, seven, ten years of the loan, thereby lowering your
monthly mortgage payment by quite a lot.
This type of loan can be of value for people who want to save or invest the
money they would have paid in principal.
Florida Mortgage Corporation offers interest only loans in a variety of
fixed and ARM mortgage programs. With some interest only mortgage programs,
you lock in a fixed rate for the life of the loan term, while others
resemble Adjustable Rate Mortgages, which carry a fixed rate for a certain
number of years and then adjust every six months to a year.
If a large part of your income is non-salary - or if you want to maximize
the tax benefits of a mortgage - the interest only option may be a sensible
choice. Unlike the traditional 30-year amortizing loan, which bills you
monthly for principal and interest, the interest only option allows you to
pay interest only for a specific period of time depending upon the term.
Purchase ▪ Refinance
Fixed &
Adjustable
Interest Rates
Stated
Income Option Available
Primary ▪ Second/Vacation ▪ Investment Property
Up To Two Million Dollars Loan Amount
Cash Out Refinance
No Down
Payment Option Available
In a speech to a
credit union group, Fed Chairman Alan
Greenspan questioned whether
fixed-rate mortgages were the most cost-effective means of financing a home
purchase. He said "American homeowners clearly like the certainty of fixed
mortgage payments" but pay several thousands of dollars a year for the benefits.
Greenspan said
homeowners "might have saved tens of thousands of dollars had they held
adjustable-rate mortgages rather than fixed-rate mortgages during the past
decade"
Greenspan noted that if homeowners are "willing to manage their own
interest-rate risks, the traditional fixed-rate mortgage may be an expensive
method of financing a home." Feb. 24, 2004
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