Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

Sandy Edelstein - 11766 Wilshire Blvd. Suite 300 - Los Angeles, CA 90025
Office Phone: (310) 689-1155

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"Two locations to better serve your needs"

11766 Wilshire Blvd. Suite 300            383 S. Palm Canyon
Los Angeles, CA 90025                      Palm Springs, CA 92262
Phone - 310-689-1155                      Phone- 760-864-1147
eFax - 310-943-2522                        eFax- 310-943-2522
Email for both locations - sandy@sandyedelstein.com

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