If you’re looking for an interest only jumbo or super jumbo mortgage, you’re seeking out a home loan product that provides you with immediate financial freedom. That’s exactly what we provide. Our interest only jumbo and super jumbo mortgage products give you the cash you need to purchase the home you desire, and you won’t be stuck with heavy mortgage payments up front. Since interest only jumbo and super jumbo mortgages have an initial interest only period, you can expect low, manageable payments up front, and once you’re settled you’ll be prepared to pay down your loan in the second phase. Let’s take a closer look at the two phases of interest only home loans:
Initial Phase: Interest Only
During the first phase of an interest only jumbo or super jumbo mortgage, you’ll be required to pay (you guessed it) only the interest on your home loan. Instead of paying down the loan value itself, your minimum monthly payment will only be the interest accruing on the home loan. Expect very low payments during this initial period. Most interest only jumbo and super jumbo mortgages have an interest only period that lasts for ten years, though contracts vary.
Second Phase: Adjustable Rate Payments
During the second phase of your interest only jumbo or super jumbo mortgage, you’ll begin paying down the value of your loan as well as the interest that accrues. There will be a notable difference in the minimum monthly payment required during this phase of the loan. In this phase, your mortgage will work just as a normal adjustable rate mortgage (ARM). You’ll pay an adjustable interest rate as well as paying down the value of the home loan, until the loan is completely paid off.