As the name implies, Interest Only loans have a monthly payment equal to the amount of interest accrual each month. The entire scheduled monthly payment is applied to interest. The principal balance remains unchanged (unless the borrower pays more than the scheduled payment).

This type of loan program is for those who would like to keep their payments as low as possible. People going through temporary financial difficulties, and people needing short term funds, benefit from this type of loan.  

When you apply for a loan with us, we may present an interest only payment option to you. You are not obligated to take it, and can ask for a partially amortizing or fully amortizing monthly payment. Although we make interest only loans, we prefer higher monthly payments (if affordable to you) because of the lower risk associated with paying the principle down faster.