How Does an Interest-Only Jumbo Loan Work?

A happy couple applying for an interest-only jumbo loan to purchase their dream home.

How Does an Interest-Only Jumbo Loan Work?

How Does an Interest-Only Jumbo Loan Work?

A happy couple applying for an interest-only jumbo loan to purchase their dream home.

As a self-made, modern borrower, you are constantly growing and evolving, and you need financial options that evolve with you and give you the space you need to grow. An interest-only jumbo loan is an innovative mortgage product that does just that. 

At mbanc, our passion is supporting self-made individuals with premier lending solutions to capitalize on opportunities that can create the kind of financial freedom the American Dream was built on. Learn how an interest-only mortgage works in our blog.

What is an Interest-Only Jumbo Loan?

With interest-only loans, you only pay interest on the mortgage for a predetermined period, during which time the principal balance will remain the same. At the end of this period, payments increase as you start to make payments toward the principal and interest.

“An interest-only jumbo loan marries interest-only loans and jumbo mortgages together so you get the best of both worlds. Because of the interest-only aspect of this mortgage, you get a flexible financing option that enables you to capitalize on a once-in-a-lifetime opportunity to purchase an investment property or residence as your income rises, and a jumbo loan enables you to get a much more expensive and, frankly, nicer property than you would be able to afford with a conforming mortgage.”Mayer Dallal, Managing Director, mbanc

How Does an Interest-Only Jumbo Loan Work?

At mbanc, we offer interest-only jumbo mortgage options with a 10-year interest-only period. After which, it amortizes into a conventional 20 or 30-year fixed mortgage. 

This interest period is, in many ways, a grace period for borrowers that enables borrowers to gain crucial financial flexibility, purchase a home they wouldn’t be able to afford otherwise, and capitalize on skyrocketing home values. 

An interest-only jumbo loan also increases your cash flow so you can use these funds strategically. This financial product enables you to pay down the principal on your terms, for example, by using short or long-term rental income from the property. 

Key features of our interest-only jumbo loan program include:

  • Lower monthly payments and financial flexibility
  • Loan amounts up to $4 million
  • 40-year fixed with a 10-year interest-only periods
  • Loan amortization in a 30-year loan after 10 years

“One unique aspect of our loan program, however, is that we require significantly less paperwork to streamline this process. Conventional lenders impose strict restrictions and requirements that can make unconventional borrowers feel like they are exiled from these kinds of opportunities, but we celebrate self-made people like you. We offer a faster and easier application process that eliminates the need for W-2s, tax returns, and other documents that might not fully reflect your financial situation.”Mayer 

Apply for an Interest-Only Jumbo Loan Today

An interest-only jumbo mortgage is a financial product that can be a great option if you have identified an unmissable opportunity but still need financial flexibility. The beautiful thing about an interest-only jumbo loan is that it gives you time to grow, evolve, and blossom. And at mbanc, our interest-only jumbo program is unmatched.
If you are interested in flexible financing and a streamlined, easy process, apply for an interest-only jumbo mortgage today.

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