Interest Only

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Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

Siuslaw Mortgage - 4780 Village Plaza Loop - Eugene, OR 97401
Office Phone: 541.683.2400 Fax: 541.683.5663 Toll Free Phone: 1.866.683.2400
Payments: PO Box 11529 Eugene, Or 97440

Siuslaw Mortgage is a division of Siuslaw Bank. For more information about Siuslaw Bank call 541.342.4000 or visit our website www.siuslawbank.com. We lend in Oregon.

Member FDIC. Equal Housing Lender.