30/10 Interest only to a Fixed Program

30/10 Interest Only to a Fixed Rate Mortgage

A 30 year fixed rate mortgage with a 10 year initial interest only period followed by a 20 year fully amortizing period. After the interest only period, the outstanding principal balance will be re-amortized over the remaining term of the loan. This will likely cause the borrower's monthly payment to increase, since it will now include the payment of principal and interest. Interest only-fixed rate mortgages will fully amortize by the end of the 30 year term. The borrower may make voluntary principal payments during the interest only period, which will trigger the recalculation of the borrower's future monthly payment.

Interest Only Loans are required to be qualified with the Principal and Interest Payment

No cash out refinances Allowed

Down Payment Requirements-Minimum 30% Down.  Owner Occupied & Second Homeowners -No Investors. 

FICO score-minimum of 720 is required

Maximum Debt to Income Ratio of 55%

Maximum Loan Amount-$417,000 in Arizona

Not assumable

Temporary Buydowns are not permitted

No prepayment penalties

EXAMPLE: $285,715 Selling Price with 30% Down. Loan Amount is $200,000. You would like to do a 10 year interest only followed by 20 years FIXED for a total of 30 years. If your annual percentage rate is 5.00%** then your monthly payment for the first 10 years is $833.33 interest only followed by 20 years of payments at $1,319.91 for principal and interest. If you were to pay off the loan prior to 10 years you would owe the principal balance of $200,000 but by the end of the 30 years it will amortize to be paid in full.

**The Annual Percentage rate used in this example are for informational purposes only and do not reflect the rate you will receive on your mortgage loan.

If you have questions or would like to see if you qualify for this program....please call 602 993-0000 or email sunnations@cox.net