The details
Most interest-only periods run 5 to 10 years, after which the loan amortizes over the remaining term at a higher payment.
Because no principal is repaid early on, appreciation or extra payments are the only sources of equity during the interest-only phase.
Run it yourself
Related loan programs
Self-employed
Interest-Only Mortgages
An interest-only mortgage lets you pay only interest for an initial period, often 10 years, before payments rise to cover principal over the remaining term.
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Investment propertyDSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
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Investment propertyInvestment Property Loans
An investment property loan finances a 1-4 unit rental you do not live in.
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More answers
- Is there such a thing as a free mortgage?
- Can you get an interest-free mortgage?
- What is a no-closing-cost mortgage?
- What is the difference between lender-paid and borrower-paid compensation?
- What does “lender-backed” mean on a mortgage?
- Mortgage broker or bank: which is better?
- How is DSCR calculated for a mortgage?
- What DSCR ratio do I need to qualify?