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Interest Only Jumbo Mortgage Loans
Interest only mortgages are a great tool for sophisticated clients wanting cash management benefits. You can make interest-only payments on your home loan throughout the year, then if you receive a large lump sum in income and desire to pay off the balance you can at any time, and the new payments will reflect this new balance.
Interest only jumbo mortgages are limited to adjustable rate mortgage (ARM) programs and can be fixed for a full 5, 7, or 10 years. This interest only period is generally 10 years after which time your payment reverts to a principal and interest payment amortized over the remaining term of the loan. This can result in a large jump in payment since not only are you also paying principal, but the remaining loan term will likely only be 20 years.
We offer interest only super jumbo mortgages – home loans that exceed $650,000 – as well as interest only jumbo mortgages. In addition we can offer an interest only jumbo 1st lien HELOC, which allows you to draw an initial balance on a fixed term of 5, 7, or 10 years and leave a portion open as an interest only line of credit. When you pay down a portion of the initial fixed term balance it is then available as a variable line of credit. The rate on the variable portion can be as low as prime minus 1.26% depending on your credit score and the loan-to-value ratio.
Curious about an interest only jumbo mortgage loan? Feel free to request a jumbo rate quote. And as always, you can call on your loan experts here at MortgageBase if you’re curious about the products and services we offer. We’ll field your questions, and make sure you’re well-educated and comfortable with your next loan decision.