Interest Only Super Jumbo Loans - Houston TX Mortgage Loans

Savvy consumers are using these jumbo loans for a multitude of things: One salesman I know funds his mutual fund the first three months of the year, then spends nine months making principal reduction payments on his super jumbo Loan.

There is no penalty for mortgage principal reduction. That’s the point! This loan gives you the flexibility to use your money the way you want to, or need to on a monthly basis. This interest only super jumbo loan allows you to take control of your cash flow. Remember cash is king!

Your house will appreciate or depreciate regardless of how much principal is paid each month; therefore, paying zero principal and diversifying into other assets or savings will allow borrowers to have real estate and financial assets working together to create a more diversified portfolio in building net worth or an estate. You are paying the lowest possible interest rate on your super jumbo mortgage loan. Interest on your mortgage is one of the few tax deductions we still have left. Why not minimize your tax liability?

Interest only super jumbo loans recast themselves upon the initial interest rate change; thereby, allowing a borrower to manage or customize his/her cash flow. This is beneficial for borrowers who are commissioned, bonus, self-employed, or who have a house to sell. They may take a higher mortgage balance today and reduce it in the future to a more comfortable level and reduce their monthly payment. Interest Only programs are available in full doc, stated income and no ratio.

Borrowers looking for a super jumbo loans have a number of options available including both fixed rates and adjustable rate loans. Initial payments are lower than those for fixed-rate mortgages, providing attractive financing for those who plan to stay in their homes for shorter periods of time. One of the most popular loan types is a program tied to the libor index. LIBOR is an abbreviation for London Interbank Offered Rate, and is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. Choosing a LIBOR index based mortgage loan will (most of the time) allows the borrower an option to pay interest only during a defined period time. These mortgage loans allow the homeowner a number of benefits over fixed rates. Some of the most common interest only programs available are

One Month Super Jumbo Loan Libor- The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan however the index value will be adjusted every month, which will cause your interest rate to be adjusted accordingly.

Six Month Super Jumbo Libor Loan – The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan however the index value will be adjusted every six months, which will cause your interest rate to be adjusted accordingly.

One Year Super Jumbo Libor Loan – The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan however the index value will be adjusted on an annual basis which will cause your interest rate to be adjusted accordingly.

3 Year Jumbo Libor ARM – The interest rate is fixed for the first three years of the loan term and your only obligation are interest only payments. During years 4 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point – (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 37) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

5 Year Super Jumbo Libor ARM – The interest rate is fixed for the first five years of the loan term and your only obligation are interest only payments. During years 6 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point – (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 61) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

7 Year Libor ARM – The interest rate is fixed for the first seven years of the loan term and your only obligation are interest only payments. during years 8 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point – (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 85) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

10 Year Libor ARM – The interest rate is fixed for the first ten years of the loan term and your only obligation are interest only payments. during years 11 thru 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a pre-defined margin rounded to the nearest one-eighth of one percentage point – (0.125%). The margin will not change throughout the term of the loan however after the initial period has passed (month 121) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender.

30 Year Fixed Rates (10 Years Interest Only) – A fixed rate for 30 years where the first 10 years are interest only payments. After the initial period has passed (121st month) the unpaid balance is fully amortized over the remaining term of the loan however the interest does not change. Most lenders allow the borrower to make voluntary principal payments during the interest only period.

30 Year Fixed Rates (15 Years Interest Only) – A fixed rate for 30 years where the first 15 years are interest only payments. After the initial period has passed (121st month) the unpaid balance is fully amortized over the remaining term of the loan however the interest does not change. Most lenders allow the borrower to make voluntary principal payments during the interest only period.

Jumbo Interest Only Loans