Interest-Only Mortgages

Understand a defined interest-only period and the repayment structure that follows.

📅 THE BASICS, SIMPLY EXPLAINED

Know the starting points.

Down payment: Lender-specific, confirm the program
Credit score: Lender-specific, confirm the current minimum
Debt-to-income (DTI): Lender-specific, including how later payments are evaluated

In simple terms

Interest-only describes a payment period, not a universal down payment or credit program.

During the interest-only period, scheduled payments do not reduce principal. Later payments may rise when principal repayment begins, and the lender reviews the applicable qualification rules.

General guidance, not approval criteria for every lender. Credit, property, income, reserves, and program availability are reviewed together.

Understand DP, credit score, and DTI ↗

WHO IT MAY SUIT

Start with your scenario.

For eligible scenarios requiring a careful review of payment changes and principal repayment.

What to discuss

Ask when principal repayment starts and how the later payment is calculated.
Review the rate structure, amortization, term, and any balloon feature.
Understand that paying only interest does not reduce the principal balance.

Does a smaller initial payment mean the loan costs less?

Not necessarily. Compare total costs and later payments. The remaining balance and repayment period can affect the payment when the interest-only period ends.

How do I get a personalized review?

Tell us your goal and property state, then use the application portal if you are ready to provide the required information. Availability and approval depend on lender requirements and applicable licensing.

Read official borrower guidance ↗