Loan Programs

INTEREST ONLY LOAN PROGRAMS

LOWER YOUR MONTHLY MORTGAGE PAYMENTS with First Mark's INTEREST ONLY mortgage programs. Instead of making a principal payment on your mortgage, you can choose the interest only option and save the extra cash. One main feature of the program is you can make principal payments of any size without penalty and as a result of these principal payments your future interest only payments will be based on the reduced principal remaining.

EXAMPLE: COMPARSION OF A 30 YEAR FIXED INTEREST ONLY TO TYPICAL 30 YEAR FIXED RATE. Example is for a $250,000 loan amount.

EXAMPLE: COMPARSION OF A 7/1 ARM INTEREST ONLY LOAN TO A 7/1 CONVENTIONAL ARM. Example is for a $250,000 loan amount.

By financing INTEREST ONLY without any points your breakeven to finance with closing costs only is usually less than a one year breakeven.

INTEREST ONLY quotes are found on the First Mark's rate sheet. Interest only programs are available for the 3/1 ARM program, 5/1 ARM program, 7/1 ARM program, and 30 Year fixed conforming loan program.

Once the INTEREST ONLY period ends [10 years for a 30 year fixed and 7 years for a 7/1 ARM], the unpaid balance will amortize over the remaining term.

Fixed Rate Mortgages
The most common type of mortgage program where your monthly payments for interest and principal never change.

Adjustable Rate Mortgages (ARM)
These loans begin with an interest rate that is lower than a comparable fixed rate mortgage, but the rate changes at specified intervals.

Standard ARMS and the Differences
Choosing an ARM with an index that reacts quickly lets you take full advantage of falling interest rates.

Interest Rate Buydowns
The buyer would pay points above current market points in order to pay a below market interest rate during the first two years of the loan. At the end of the two years they would then pay the old market rate for the remaining term.

Choosing The Best Program
The right type of mortgage for you depends on many different factors