Review current interest only mortgage rates for September 26, 2020. Use the table below to compare interest rates, APRs, fees and monthly payments for three, five and seven year interest only loans. These mortgages are also called interest only ARMs or IO ARMs for short.
During the initial period of the mortgage you pay only interest and no principal and then loan converts into an amortizing mortgage. Because you do not pay principal for the first several years of the mortgage, the initial payment on an interest only loan is lower than for other types of mortgages plus you may be able to afford a larger loan amount. The drawback of an interest only mortgage is that your monthly payment can increase significantly when the loan starts to amortize and your mortgage rate can also go up.
Input your specific criteria into the search menu to review current interest only mortgage rates for different loan types and lenders. Fewer lenders offer interest only mortgages plus there can be significant differences in loan terms so you should shop multiple lenders to find the best loan terms.