Interest Only

Lower Your Monthly Payments - Increase Your Cash Flow - Buy More Home!!! With interest rates still at the lowest in decades what better time to refinance or purchase a new home. LIBOR loans come in a wide range of products and you may be very surprised just how low your payment will be.

Libor is an abbreviation for "London Interbank offered Rate" and is the interest rate offered by a specific group of international banks located in London for U.S. Dollar deposits, or the flow of U.S. Dollars through international banks. The loan has a 30-year term and is interest only for the first 5-10 years depending on the lender, then it fully amortizes the remaining 25 years. (There is NO negative amortization)
It is a simple interest payment calculation. Interest Rate multiplied by your loan amount, divided by 12.

For Example: $100,000 X 3.25% = $3250 divided by 12 = $270.83 payment

The example payment does not include taxes and insurance.

Click here for the INTEREST ONLY calculator to see the difference between your current mortgage payment vs. the new interest only payment. Remember, whatever amount that you pay over and beyond the interest only payment comes off the balance of the loan.

How does the LIBOR compare to other indexes?

Over the past ten years, LIBOR index has followed a pattern similar to that of the U.S.
T-BILL. LIBOR rate changes have historically been in smaller increments, while the Prime Rate has tended to move more sporadically and in larger increments.

Why Pay Principle?

For the first 5 years of a 30-year fixed rate mortgage @ 6%, you are paying almost 80% in interest to the bank. So the amount of equity you build by paying a full payment is very minimal. Why not use that money to pay off credit card debt, take a vacation, or save money for your children's future.

LIBOR History

15 Year Average > 5.54%
10 Year Average > 4.73%
5 Year Average > 4.89%

Why choose an INTEREST ONLY LOAN?

• Substantial monthly savings-it's like giving yourself a raise!!!
• Move into a bigger, nicer house for the same payment
• Use the savings to pay off other debt
• Cash flow for investments or savings
• Best rates available-especially for Jumbo borrowers
• Easy Loan Approval
• Quick hassle-free closing

Contact us today to start saving money, pay off debt, or just go on a well deserved vacation.

Tim Sparks
303-972-1891-Office
720-273-4863-Cell