Do you want to lower your mortgage payment as much as possible? An interest only loan from Pacific One Lending may be a good fit for you. Interest-only loans have an initial time frame of ten years in which only interest is paid, followed by a period of time in which the payment goes up in order to pay down the loan's balance. This means the initial payments are comparatively low, allowing you to use the balance of your cash flow for other immediate needs. The borrower has the option to increase the payment of the loan each month if they wish. However, if the borrower only pays the interest-only portion during the interest-only period, the loan balance will remain unchanged.

When an Interest Only Loan Makes Sense:
Interest only loans are for specific types of borrowers who have a good reason for the initial lower monthly payments. Once the interest has been paid off, they will still owe the full amount on the property. Buyers with fluctuating income may want a interest only loan, so that they can only pay the interest if income is tight. Some borrowers also prefer interest only loans so they can buy a larger home, invest the extra money in other investments or pay off a second mortgage.

Advantages of an Interest Only Loan include:

• Fixed and adjustable rates
• Flexible terms
• No points and hidden fees
• Competitive rates
• No pre-payment penalties
• Expanded debt-to-income ratios

Call us today at 888-733-4224 to determine if a Orange County interest only loan is right for you. You can also apply online for free quote.