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LIBOR & PRIME Rates
 
  welcome to InterestOnlyLoans.com !
 

InterestOnlyLoans.com is the original resource for information on interest only loans & mortgages in the nation.  First-time homebuyers, seasoned real estate investors & mortgage professionals use our site daily to find information on topics such as interest-only mortgage programs, the LIBOR Rate, the Prime Rate, the COFI Index, Option Arm Loans & more.  You can view common interest-only mortgage guidelines, find interest-only mortgage lenders, calculate interest only mortgage payments, understand the benefits & risks interest-only loans have over traditional fixed rates and even view the current Fannie Mae loan limits for conforming,  jumbo & super jumbo mortgage loans.

 

 
What is interest only?

An interest only loan does not mean you will never pay principal on a home loan.  These mortgage programs simply have what's known as an interest-only payment option attached to the note.  In all cases the note will state how long your interest-only payments will last.  Let's use a 5 year interest-only loan for example.  On a typical 5 year fixed rate under an interest-only program the interest rate is fixed for the first five (5) years of the loan term and your only obligation are interest-only payments during this term.  During the beginning of the 6th year (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.  Think of it as taking a 25 year mortgage (principal & interest payments) on an adjustable rate note tied to the then current interest rates.

 

 
the libor index & libor rate
 

 

LIBOR (an abbreviation for "London Interbank Offered Rate") is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. The majority of interest-only loan programs are tied to the LIBOR index rate although some lenders use the CMT (treasury) and COFI indexes.

 
  View the Current LIBOR Rate
 

 
is interest only a long term solution?
 

No, not for everybody. Interest-only loans are generally not long term loan programs. However interest only loans can provide a great option for many homebuyers such as:

  • High Net Worth Individuals
    Consumers who do not wish to tie up the equity in their home and would prefer to invest the money into markets of better return.
     

  • Young Professionals
    Consumers who are sure their income will grow but would like greater purchasing power today. For example, young lawyers & doctors
     

  • Short Term Home Owners
    Consumers who know the time frame for home ownership and are more concerned with lower payments than building equity.
     

  • Real Estate Investors
    Consumers purchasing investment property find interest only loans very valuable in areas where real estate appreciation is high.

This is not to say that an interest-only loan may not be right for you but every program has a certain profile of consumers that tend to show the majority of interest.  If you think an interest-only loan can benefit your life it would be a good idea to contact a mortgage lender & consult with your financial advisor to make the best decision for you and your family

Top Interest Only Links
  Compare Loans
Learn about interest-only loan programs for jumbo, super jumbo & conforming loan amounts!
  Prime & LIBOR Rates
View the current Prime & LIBOR rates - updated daily!
  Find a Lender
Get today's mortgage rates from lenders nationwide!
  Why Interest Only
Learn the benefits & risks of interest only loans
  Mortgage Calculators
Calculate mortgage payments and amortization schedules online.
  Jumbo Loans
Learn about 2006 jumbo loan limits and find mortgage lenders nationwide
  Super Jumbo Loans
Learn about super jumbo home loans!
  Option Arms
Learn about your payment options with the "option arm" home loan!
  Commercial Libor Loans
Find lenders and rates for commercial interest only mortgage loans
  Fannie Mae Limits
Understand current limits for conforming loans as set annually by Fannie Mae
  Newsletter
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