Fixed Rate Interest Only Mortgages for Refinances
A Fixed Rate Interest Only Mortgage is one where the rate is established at the beginning but the monthly payment is only paying the interest on the loan for the initial Interest Only period. Normally this is period is for ten years. Once the Interest Only period has expired, a new monthly payment is calculated that will pay off the principal and interest by the time the final payment is made. Once that new monthly payment amount is calculated, it will not change for the remainder of the term of the loan. There will be no changes to the interest rate during the period of this loan.
Rate Term Refinances
A Rate Term Refinance is one where the new loan pays off the existing mortgage but does not result in you receiving cash back from the transaction.
Maximum Loan to Value - Refinance Fixed Interest Only - Rate Term |
|
| Property Type | Loan To Value |
Primary Residence |
|
| One Family | 95% |
| Two Family | 90% |
| Three or Four Family | 80% |
Second Home |
|
| One Family | 95% |
Investment Property |
|
| One or Two Family | 90% |
Cash Out Refinances
A Cash Out Refinance is one where the new mortgage is for more than the current mortgage being paid off. As a result, you will receive cash back at the conclusion of the transaction.
Maximum Loan to Value - Refinance Fixed Interest Only - Cash Out |
|
| Property Type | Loan To Value |
Primary Residence |
|
| One or Two Family | 90% |
| Three or Four Family | 75% |
Second Home |
|
| One Family | 90% |
Investment Property |
|
| One or Two Family | 70% |
