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Interest-Only Loan

With interest only loans, you can pay a low minimum payment that only covers loan interest, not the loan principal. You get to decide how much or how little of the loan principal to repay each month.

The advantages of interest only loans include:
- Monthly payments are lower
- Qualifying for a higher loan amount
- Choosing to pay the full principal and interest
- Maximizing your tax deduction
- More cash available for paying down higher cost, nondeductible consumer debt
- Making a principal reduction to lower your monthly payment

By making interest only payments during the first ten years of your loan, you can save significant amounts of cash. You can then invest that cash, use it to pay off consumer debt or simply improve your cash flow.