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.

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.

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