Interest-Only Mortgage

Name: Interest-Only Mortgages
Brand: Leader Bank

Enjoy a lower initial monthly mortgage payment!

What are The Benefits of a Fixed-Rate Mortgage?

Lower Initial Monthly Payments

Build Equity on Your Own Schedule

Grow Your Savings During Interest-Only Period

More Easily Manage Your Monthly Expenses During Initial Payments

Workings with Carrie Carrizosa and Leader Bank was an absolute pleasure. Their process and communication was buttoned up from the get go resulting in zero stress. Never once did we feel like we were behind schedule in the process. Carrie and her team excel in service and efficiency. I cannot recommend Carrie and her team strongly enough.

Matthew G.

We had a wonderful experience working with Roger from Leader bank and his team. They are very quick, responsive and professional, recommended us with good attorneys, and gave us competitive rates. Roger is also very patient in answering all my detailed questions. The whole process of house purchase was very smooth. We will definitely recommend them!

Weiyu Y.

Working with Scott King and the Leader Bank team was a truly refreshing experience in a typically frustrating space. I felt confident at every turn that Scott had my back and was looking out for my best interests. His communication and followup are unmatched, and his tireless work ethic and positive attitude are a true asset for your home buying process. I highly recommend working with Scott and the Leader Bank team!

John K.

After speaking with numerous banks for my first mortgage, I ended up choosing Leader Bank due to Matthew McCarthy. Matthew was noticeably more diligent and knowledgable than the other banks I inquired with. Matt was very proactive with explanations, follow-ups, and suggestions for my particular situation which as a salesperson myself, I appreciate. In addition Leader Bank had far and away the best rate of anyone I called to the point that my real estate agent and attorney also began sending referrals their way...

Mike M.

In a very chaotic, scary (and also expensive) time to be a first-time homeowner, Chris and his team at LeaderBank have been amazing to work with and their tools made me so much more comfortable and confident that I was doing the right thing at the right time, and how to know that the whole team was on top of it. We got everything done from offer to closing in amazing time, too, working very well together as a team with my buyers-advocate agent and their preferred law firm, every single hand-off seemed to go perfectly smooth.

David H.

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Frequently Asked Questions

An interest-only mortgage features initial monthly payments that do not include the repayment of principal. After this initial interest-only period, monthly payments include both principal and interest. Interest-only loans are offered at either a fixed-rate or an option for a adjustable-rate. Once the loan passes the initial interest-only period, the loan becomes fully amortized with monthly payments increasing. Many borrowers choose to refinance at the end of the interest-only period.

As an example solely for explanatory purposes, if you borrow $250,000 at 6 percent, using a 30-year fixed rate mortgage, your monthly payment would be $1,499. On the other hand, if you borrowed $250,000 at 6 percent, using a 30-year mortgage with a 5-year interest-only payment plan, your monthly payment initially would be $1,250. This saves you $249 per month or $2,987 a year. However, when you reach year six, your monthly payments will jump to $1,611, or $361 more per month.

Borrowers with sporadic incomes can benefit from interest-only mortgages. This is particularly the case if the mortgage is one that permits the borrower to pay more than interest-only. In this case, the borrower can pay interest-only during lean times and use bonuses or income spurts to pay down the principal.

How much can you afford?

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By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

Financial Calculators from
Dinkytown.net

Interest-Only Mortgages | Leader Bank

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Loan information:

Mortgage amount:*This entry is required.Enter an amount between $0 and $250,000,000

Term in years:*This entry is required.

Interest rate:*This entry is required.Enter an amount between 0% and 50%

Monthly payment:

Report amortization:

Report amortization

Annually

Monthly

Closing Costs: $0.00

Loan APR 0%

**FIG_GRAPHTITLE** Stacked Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Total Payments KJE1
KJE2

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Principal Balance by Year

Definitions

Mortgage amount

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax-deductible. Home equity loans are limited to $100,000 or the amount of equity you have in your home. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.

Interest rate

Annual interest rate for this mortgage.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Monthly payment

Monthly principal and interest payment (PI).

Loan origination percent

The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.

Discount points

Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount. As long as the points paid are not a broker's commission, they are considered tax-deductible in the year that they were paid.

Other fees

Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.

Annual Percentage Rate (APR)

A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.

The calculator tool provided is for informational purposes only and does not reflect any specific mortgage or home equity line of credit offered by Leader Bank or any specific terms that may be available for such products. For information on available Leader Bank products and services, please contact a Leader Bank loan officer directly. Examples of monthly payment amounts shown in calculators does not include taxes, insurance or any condominium or HOA fees applicable; as such your total monthly housing payment would be higher. For any adjustable or variable rate loan examples provided, interest rate may increase after consummation and your fully indexed rate, annual percentage rate and monthly principal and interest rates may be higher.