Florida Interest Only Mortgage Loans
Here in Florida, a five or ten year interest-only period is typical. At the end of the scheduled time frame, it is common that the principal balance begins the amortized stage for the remaining scheduled life of the mortgage loan. In other words, if a borrower had a thirty-year mortgage loan and the first five years were interest only–at the end of the first five years–the principal balance would be amortized over the remaining period of twenty five years.
The practical result is, the early payments–in the interest-only period–are much lower than the later payments.
The adjustable rate interest only mortgage loan is even a greater risk to both the consumer and the Lender. At Solutions First Mortgage Inc. we do not recommend these types of loans.
Interest Only Mortgage Loans Available in Florida
At Solutions First Mortgage Inc. we believe an Interest Only Mortgage Loan should only be used for people who intend on only holding the property for a short period of time, generally less than three years.
Most often, these types of loans are best used for someone like a real estate investor or contractor who has a strategic plan to purchase real estate, only to hold for a short period of time. This can be used to renovate and flip, create an income generating property, or lease property.
We highly recommend the purchaser should have a very good understanding of real estate market trends, market fluctuations, and market risk. A good real estate investor should always have a good exit strategy as part of their business plan. A consumer on a fixed income, who does not have the means or the ability to increase their income on short notice and cannot sustain the higher income or a higher mortgage loan payment for long period of time, should not consider an Interest Only Mortgage Loan.
For further information about getting the right mortgage for you and to arrange your ‘NO-FEE ASSESSMENT’
CALL US on (+1) 941-921-1110