– Interest Only – Jumbo 5/1 ARM. Interest Only Loans allow you the flexibility of investing your money where you wish, not just in your house. During the first five years of your loan you can either pay interest only, or include whatever amount of principal you wish, even a large principal prepayment if desired.
Pros and Cons of Interest Only Loans – The Balance – smaller payments: monthly payments for interest-only loans tend to be lower than payments for standard amortizing loans (amortization is the process of paying down debt over time).That’s because standard loans typically include your interest cost plus some portion of your loan balance.
Interest-Only Mortgages: What You Need to Know | LendingTree – Adjustable-rate interest-only mortgage . An adjustable rate mortgage is a loan product that can also carry an interest-only option. An interest-only ARM has an initial period interest only mortage loan with a fixed rate and then goes on to adjust periodically. The frequency of adjustment is based on the terms you agree to.