Conforming 30 Year Fixed (Interest Only)
Refinance

Conforming 30 Year Fixed (Interest Only)

What if you can have the security of having a thirty-year fixed loan with an interest only option. The interest only option would reduce the mortgage payment for a particular period of time. The 30 Year Fixed interest only loan is one of the loan programs that just emerged in the mortgage industry. This is an interest only fixed-rate mortgage that is amortized over 30 years and allows borrower to pay interest only for the initial interest-only period of 10 or 15 years. The outstanding principal balance will be re-amortized over the remaining term of the loan after the initial interest-only period. This will likely cause the borrower's monthly payment to increase, since it will now include a payment of principal and interest. Interest only fixed-rate mortgages will fully amortize by the end of a 30-year term. The borrower may make voluntary principal payments during the interest only period, which will trigger the recalculation of the borrower's future monthly payments.

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Two options are offered for conforming loans:

· 10/20 Interest Only Fixed-rate Mortgage
- a 30-year fixed-rate mortgage with a 10-year initial interest-only period followed by a 20-year fully amortizing period.

· 15/15 Interest Only Fixed-rate Mortgage
- a 30-year fixed-rate mortgage with a 15-year initial interest-only period followed by a 15-year fully amortizing period.

Example:

Loan amount: $417,000

Interest rate: 6.25%

Fully amortized payment: $2567.54

Interest only payment: $2171.88

Refinance at Today's Low Rates!