Florida Interest Only Mortgage Loan

A Florida interest only mortgage loan can be a great loan program for certain FL home buyers. With an interest only loan the FL borrower pays (as the name implies) only payments of interest for the first part of the payment schedule. This is great for borrowers that need a low initial monthly payment (such as those that can be expected to make a substantially higher income in the coming years or those who are maybe purchasing the home as an investment property and want to take advantage of as much leverage as possible). The main drawback to the interest only program is that the borrower does not build equity during the interest only portion of the payment schedule.

 

Interest only loans may be appropriate for the Florida borrower that is in a transitional stage. For example, if you are in the middle of jobs and you expect to be soon making quite a bit more income then you are currently making then an interest only loan may provide the flexibility that is needed. Another example is if you are moving from a first residence to a house that has a much higher purchase price and you have not been able to sell the first house in time to free up the money that is needed for a traditional loan program. (Warning: do not sacrifice your financial security and stretch too far for your “dream house” while thinking that an interest only mortgage program will necessarily be the best long term strategy. Do a detailed cost/benefit analysis with a mortgage professional or other qualified advisor).

 

Interest only mortgages may be a good fit for FL investors that are seeking to flip properties or otherwise profit from a quick turnover type of situation. The low monthly payments of an interest only mortgage can help to qualify many borrowers for higher dollar value loans than they would qualify for under a traditional mortgage loan. An interest only mortgage loan is very attractive to those investors that wish to use a great deal of leverage in their real estate investment transaction. Generally speaking, traditional mortgage programs and even Adjustable Rate Mortgages (ARM’s) are better suited for a long term mortgage program (depending on the borrower’s unique situation) while FL interest only mortgage loans are better suited for short term transitional type approaches.

 

The low monthly payments and the flexibility of the interest only mortgage program will wow many Florida borrowers. Be sure and compare the rates and the payment schedules side by side with other loan programs. Speak with a knowledgeable FL mortgage broker or other qualified advisor in order to find the Florida loan program that best helps you meet your financial goals.

 

Take just a few moments online to do your research and get some solid numbers to apply to your personal situation. Compare interest only mortgages, adjustable rate mortgage, and traditional mortgages for free by requesting free Florida mortgage quotes at Florida Mortgage 360!