Interest-Only loans are a good means of either increasing your home purchasing power or maximizing your flexibility to control cash flow.

You can save significant amounts of cash for investment, savings, or other expenditures during the first ten years of your loan. This is also a solid strategy to maximize tax deductibility, with more funds available for paying down higher cost, nondeductible consumer debt.

With these loans, the minimum payment required covers interest only — you decide how much or how little of the principal to repay each month. These loans should not be confused with negative amortization loans. With Interest-Only, the principal balance NEVER increases.

Home Buyer Tip

Borrow up to 100% without paying mortgage insurance. By obtaining both a first and second loan instead of a single loan.

Homebuyers can borrow up to 100% of their home's value and avoid paying private mortgage insurance (PMI).

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