30 Year Fixed/Interest-only

With a 30 year fixed interest only mortgage, the borrower pays interest-only for the first 10 years of the loan at a fixed interest rate. The introductory interest rate for a 30 year fixed interest only mortgage is fixed for the entire 30 year term of the loan, however, the remaining 20 years of the loan will be fully amortized, with principal and interest included in the payment. (For example, if the interest rate is 6.25%, for the first 10 years it will be an interest only payment based on 6.25%, and for the remaining 20 years it will be a principal and interest payment at 6.25%). The borrower may make principal payments at any time during the interest-only period which will reduce the required interest-only payment the following month. The 30 year fixed interest only mortgage will most likely have a higher premium (in the form of an interest rate) than an adjustable rate interest-only product, but it offers the stability of a fixed rate for the term of the loan. Call an Alerio representative today to find out about your 30 year fixed interest only mortgage.