Interest only loans have become very popular as a method to keep more of your money in your pocket for other uses. Interest only loans come with the same variety of features as fixed and variable interest rate loan programs but with the benefit of a lower payment because you are only paying on the interest and not the principle loan amount.
According to industry analysts, interest only loans offer the following advantages:
Interest only loans and interest only home mortgage rates can be more costly than a traditional fixed rate or adjustable rate mortgage but the benefits usually offset the costs. The following table compares these benefits versus costs:
| Loan Program | Advantages | Disadvantages |
| Interest Only Programs |
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Interest only loans provide the borrower with greater buying power, lower monthly payments, and greater financial flexibility. One of the primary considerations for borrowers interested in an interest only loan is that the payment is based on the principal balance and the principal balance does not decrease which results in the payment of more interest compared to traditional mortgage products.
PRODUCT UPDATE: Alpine Mortgage has suspended our interest only loan program. We will update this page when we are accepting new applications for this program.
Interest Only Tools & Advice
