10
Year Interest Only Loans
Are you in the market for a 10/1 ARM interest
only mortgage? While SureHits, the company
that draws the data used in the survey on
this site, does not poll for 10 year
adjustable rate interest only loans, many
of the companies listed still have access
to these programs. You will need to contact
the providers individually to find out if
they do indeed offer 10 year IO ARMs.
How
Does a 10 Year ARM Interest Only Mortgage
Work?
Most 10 year adjustable rate interest
only mortgages are 30 year amortizing loans
where the introductory period of the loan
remains in place for the first ten years
of the loan. During this same introductory
period, a consumer may elect to only pay
the interest portion of their monthly payment.
After the first ten years pass, the loan
then can adjusts up or down based upon the
loan's margin, caps, and the current rate
of the idex which the loan is tied too.
Also, the principal portion of the mortgage
then comes into play and will be due in
its entirety during the remaing 20 years
of the loan.
When you add those two adjustments together,
a consumer may experience a rapid increase
in their monthly mortgage payment obligations.
Therefore, it is very import for home owners
to consider the down side of a 10 year interest
only mortgage before making a committment
to this financing option. Please note that
these products vary by lender so be sure
to do your homework.
Interest only loans are not available in
every state. Be sure to ask a mortgage professional
if a 10 year IO loan is an option in your
state.
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