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5 Year Interest Only ARM

For those who need an extremely low mortgage payment for a short period of time, a 5 Year Interest Only adjustable rate mortgage might be just what you're looking for. With an initial rate that is generally lower than comparable fixed rate loan programs, this mortgage only requires you to pay the interest portion of the loan for the first five years. After the end of the initial period the rate will adjust upwards or downwards depending on the current market, and you will have to start paying back the principal on the loan. Many people plan on refinancing before that point, but it is important to remember that you will not be building any equity by paying down the loan so unless you made a substantial downpayment up front if the home's value depreciates somewhat it could make it tough to qualify for a refinance mortgage. Of course we all hope that the value of our real estate will go up over time, it is good to be prepared for the reverse scenario.

Additional Interest Only Loan Options

You may also want to consider the following interest only loan products available from American Financial Resources:

• 30 Year Interest Only Loan
• 7 Year Interest Only Loan
• 10 Year Interest Only Loan

To learn more or to get started with one of these loan programs submit your information online, request a quote, or call 800-316-9508 to speak directly with a loan consultant.