HomeSweepstakes

Interest Only


Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan ProgramAdvantagesDisadvantages
Interest Only Programs
  • Several payment options
  • Lower monthly payments
  • Qualify for a higher loan amount
  • Qualify at the interest only payment
  • Option to pay the full principal and interest payment
  • Interest only payments for up to ten years
  • Higher rates
  • Principal loan balance will not decrease during the interest only payment period
  • Payment will be higher for the remaining term

Interest only payment options will often allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.



Valley Team Mortgage - 1626 Apperson Drive, Suite C - Salem, VA 24153
Office Phone: (866) 433-4565 Fax: (540) 444-5630


We are proud members of the Roanoke Valley Association of Realtors  & Roanoke Regional Home Builders Association.

Licensed by the State Corporation Commission of Virginia.  License #MB-1750.

 



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