Interest Only Refinance
It is a common misconception that homeowners with interest only refinance mortgages cannot build any equity. Interest only refinance loans allow borrowers the freedom to pay down principal as they choose at the amount of their choosing. Interest only refinance loans are for savvy borrowers who want greater flexibility in their financing options and have extra capital on hand to change their monthly payments amount from month to month.
Advantages to Opening an Interest Only Refinance Loan:
• Borrowers get the freedom to allocate their money towards short-term investments instead of having all of their capital wrapped up in their mortgage payment.
• Borrowers can allocate their finances towards unexpected bills or save extra money for upcoming financial situations.
• Borrowers can pay the amount of principal they choose from month to month.
• They are great for borrowers looking to “flip” their home and want to allocate more of their funds to improve the property.
• Interest only refinance loans are great for borrowers who work in a non-salaried position such as commission sales or freelance work and have an inconsistent income.
Disadvantages to Having an Interest Only Refinance Loan:
• A majority of interest only refinance loans are only interest free for a set term. After the term expires, borrowers are expected to pay both interest and principal payments.
• Borrowers who avoid paying on the principal will accumulate very little equity over time.
• If the property declines in value the borrower runs the risk of owing more than it is worth.
Other Refinance Options Available Through Crestline Funding
In addition to Crestline Funding’s interest only refinance loans Crestline Funding has many other options available for homeowners such as 3/1, 5/1, 7/1 adjustable rate mortgages and home equity lines of credit. As a direct lender, Crestline Funding can custom tailor an interest only refinance loan product that meets our clients’ individual needs. Crestline Funding also has a wide variety of fixed-rate loans for people looking to refinance their interest only refinance or adjustable rate mortgages to a stable, fixed mortgage payment.
Crestline Funding – Your Friend in the Mortgage Business
What separates Crestline Funding from other interest only refinance companies is that Crestline Funding is a direct lender. Direct lenders originate loans from their own capital, giving Crestline Funding the freedom to make its own financial decisions and set its own lending criteria. As a direct lender, Crestline Funding is free from dealings with middle men and brokers which, in turn, saves its clients money and time.
Get prequalified for an interest only refinance loan today by simply clicking the link below and filling out a short online form. During normal business hours you can learn your preapproval status in as little as 20 minutes.
Get Pre-approved Today
or Call 949-863-8600