Interest-Only Financing Solutions from Merrill Lynch Home LoansTM
Interest-only financing is a home financing payment option that offers you the flexibility to control your cash flow by reducing your initial monthly mortgage payments.1
By paying only the interest on your mortgage, you can reduce your monthly mortgage payment and have more funds available for other needs. Redirecting money that would have gone toward paying principal on your mortgage may complement your overall financial strategy and potentially help you grow your wealth. An interest-only financing solution can allow you to:
|
- Maximize potential tax-deductions.2
- Manage unforeseen expenses.
- Repay higher cost, non-deductible consumer debt.
- Reduce future monthly payments when principal prepayments are made during the interest-only period -- the reduced payment would be based on the new lower principal balance.
|
| What you should know |
- If principal payments are made, subsequent interest-only payments will be recalculated monthly based on new lower principal balance.
- Large loan amounts are available.3
- The interest-only option is available with select mortgages.
|
Learn the potential risks of Interest-Only mortgage payments.
1“Interest-only” mortgages allow you to pay only the interest on the money you borrow for a certain number of years. If you only pay the amount of interest that’s due, once the interest-only period ends, you will still owe the original amount you borrowed and your monthly payment will increase – even if interest rates stay the same – because you must pay back the principal as well as interest. You should ask what the payments on your loan will be after the end of the interest only period. If you are considering an adjustable-rate mortgage, ask about what your payments can be if interest rates increase.
2Merrill Lynch does not provide specific recommendations on tax issues. Consult your tax advisor regarding the deductibility of interest expense. Interest expense may not be deductible for all taxpayers.
3Loan amounts over $3 million may be available on a case-by-case basis to qualified applicants.