7
Year ARM Interest Only Loan Information
Use the rate tables at the top of this
page to find mortgage companies serving
your state. While 7 year IO loan rates are
not polled, many of the lenders and brokers
listed can and do offer 7 year interest
only adjustable rate mortgages. Please
contact the various companies for more information
on their products and services.
Basics
of 7/1 IO ARM Mortgages
Please note that 7 year interest only
loan programs vary by investor. Make sure
to consult with a mortgage professional
before making a decision.
Here is a basic overview of how many 7
year interest only loans are set-up (see
note above):
- Loans are typically 30 year mortgages
where rate is set for the first 7 years
of the loan and then will begin to adjust
after those first 84 months pass. You
will want to review the adjustable rate
handbook available from your lender and/or
broker and pay close attention to the
loan's margin, caps, and the index it
is associated with.
- Interest only period is for the first
7 years as and then principal reduction
payments must be made.
Interest only loans are not available in
every state. Be sure to ask a mortgage professional
if a 7year IO loan is an option in your
state. Adjustable rate loans and interest
only loans carry a higher degree of risk
when compared to fully amortizing fixed
rate products. Be sure to have a complete
understanding of the associated risks before
moving forward.
|
