Because they were mostly jumbo loans, obviously the difference in monthly payment grows with the larger loan amount. The $100 per month difference in the $100,000 example above grows to $1,000 per month on a $1,000,000 loan, which is a substantial amount of cash that could be put to better use. For example, while real estate might produce a "return" of the inflation rate plus a couple of percentage points, putting that money to work in the stock market instead could offer much higher returns. A savvy Mountainaire investor might just be able to grow his investment very handsomely in a short period -- leveraging their incomes to build asset strength.

This is a viable use of interest-only payments, but naturally there are risks, especially in stocks. However, the type of savvy-investor-type Mountainaire people we're talking about here normally have assets sufficient to help offset any risks of not paying off their homes should they need to sell or refinance. Their risk is less than yours or mine would be.

Most interest-only payment schemes are offered on Adjustable Rate Mortgages (ARMs), but they can be found on fixed-rate mortgages (FRM) as well. They've also entered the mainstream, so that they're available to just about all Mountainaire borrowers. The loans you'll find will most likely be sold to a secondary market dealer, so let's look at Fannie Mae's program.

Fannie Mae purchases from lenders an interesting version of a FRM featuring interest-only payments. Called "InterestFirst", it features back-to-back 15-year terms, with the first period comprised of interest-only payments and the second fully- amortizing. Expect to pay a little extra for this product: the rate for the InterestFirst product is slightly above the rate for a similar, but fully-amortizing, product.

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- Mountainaire Interest Only Loans

Mountainaire interest-only loans are special loans where you only pay interest first and then pay the principal later. This is a great way to go if you can’t afford large payments now, but you’ll be able to in the future. This is also a great way to go if you have the money, but you want to invest it in other ventures such as another home, more home, home improvement projects or a vehicle. They are also good for if you need the extra cash to pay off higher-interest and non-tax deductible debts. Mountainaire interest-only loans are most ideal for people who plan on selling or refinancing before the interest-only period is up. To see if a Mountainaire interest-only loan would be a good idea for you and your spouse, send us your information by inserting it the in form above and one of our experienced Mountainaire representatives will get back you.

- Mountainaire Interest Only Loans Offer the Lowest Payments

Since you’re only paying the interest to start out with, Mountainaire interest-only loans offer the smallest monthly payment. There are many reasons for why you would want low payments but whatever the reason is, Mountainaire interest-only loans are perfect for this scenario. With Mountainaire interest-only loans you can also maximize your income tax deductions. For more information on what a Mountainaire interest-only loan can do for you, fill out the form above and a knowledgeable representative will get back to you.