Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

Carrollton Mortgage Services, Inc - 2300 York Road Suite 213 - Timonium, MD 21093
Jeff Albaugh Office: (410) 561-7515 Ext 124 or Cell: (443) 324-3070 Matt Weaver Cell: (443) 831-4352
Erin Ferro Office: (410) 561-7515 Ext 135 Christy Lancellotti Office: (410) 561-7515 Ext 123
Toll Free Phone: (800) 840-5269 Fax: (410) 561-8145

We lend in the following states: MD, VA, WV, DE, PA

The information provided in this website may not apply to each individual mortgage loan situation.

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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.