Reduced monthly payments:
With our Interest Only feature, your monthly mortgage payment consists of interest
alone for the first three, five, seven, or ten years. A 30 year fixed rate
available. This increases your cash flow - making homeownership much more
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 such as credit
cards. 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.*
You are welcome to make principal payments during the "interest only"
period, but are not required to do so. Manage your mortgage.
Best for people who:
Are very focused on money management. Manage your mortgage.
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, or ten years of the loan, thereby lowering your
monthly mortgage payment substantially.
This type of loan can be of value for people who want to save or invest the
money they would have paid in principal. Manage your mortgage
Florida Mortgage Corporation offers "interest only" loans on 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
are 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 very sensible
choice. Unlike the traditional 30 year amortizing loan, which bills you
monthly for both principal and interest, the interest only option allows you to
pay interest only for a specific period of time depending upon the term.
30 YEAR FIXED RATE
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.
homeowners "might have saved tens of thousands of dollars had they held
adjustable-rate mortgages rather than fixed-rate mortgages during the past
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