For many families and individuals who are purchasing or refinancing a home, it can be difficult to determine what mortgage products will best meet your goals.
Many people feel that, while they could put some of their money towards paying down monthly interest and principal payments on a home loan, they could get a better return if some of these funds were put into other investments rather than a checking or savings account.
In these instances, you may consider an interest only mortgage.
What Is an Interest Only Mortgage?
Interest only home loans allow you to pay only the interest on your mortgage for a period of time, with your remaining interest and principal payments modified to an adjustable-rate mortgage at the end of the term.
At First Western Trust, we offer four different adjustable-rate interest only mortgage programs. Each are offered as a portfolio loan, which means that the loan itself will be maintained and serviced at First Western Trust.
Benefits of Using First Western Trust’s Interest Only Home Loan
Interest only loans can be a great alternative to a traditional mortgage. However, due to the adjustable rate payments as well as the large principal payments due at the end of the loan, you should assess your current financial situation and expectations for the future before taking out such a loan.
For those who are good candidates for an interest only mortgage, this service can:
- Maximize your cash flow. By only paying interest payments for the specified term of the loan, you decrease your cash outflow, keeping more in your accounts today.
- Build net worth. Interest only home loans allow you to invest more of your funds into stronger investment vehicles than you would typically use for a mortgage loan (like your checking or savings account). This can help increase your net worth.
- Provide potential tax benefits. Since the whole amount of the monthly payment may qualify as tax-deductible during the interest only period, you may find yourself in a more favorable tax situation.
Our Interest Only Loan Experts
At First Western Trust, our teams bring significant expertise in interest only mortgages as well as other home loans for families and individuals interested in conventional, jumbo, first-time home buyer, and investment property loans.
We deliver a tailored client experience, along with competitive rates, and provide our clients with:
Local Decision Making
Our interest only mortgages are held in the First Western Trust portfolio. Because they are not being sold to the secondary market, as many mortgage loans are, the decision to make an interest only home loan stays within our company and is made locally.
Strong Expertise with Complex Financials
Many mortgage companies struggle to work with clients who do not have W2 income. However, our teams are accustomed to working with business owners, entrepreneurs, and executives who have complex financial statements and whose income does not necessarily come through a W2 statement. This expertise allows us to sort through complex financial statements and make lending decisions based on a more complete picture of our clients.
Tailored, Holistic Advice
While mortgages may seem transactional, we recognize that they’re about so much more than money. It’s about your home, the place your family and friends will visit, and the experiences you share there. Our team takes the time to understand each aspect of your wealth and your long-term objectives. Then, we suggest financial solutions that best meet your goals for today and the future
Our team is happy to sit down with you to discuss your needs for your next mortgage loan and help you determine if an interest only mortgage is the right fit for you.
To get a quote on a rate for your interest only home loan, fill out the form below or call our main line at 303.531.8100 to speak with one of our mortgage loan originators today.
Bank NMLS ID 477166