When Does an Interest-Only Jumbo Loan Make Sense?

A person receiving the keys to his new home after using an interest-only jumbo loan to purchase it.

When Does an Interest-Only Jumbo Loan Make Sense?

When Does an Interest-Only Jumbo Loan Make Sense?

A person receiving the keys to his new home after using an interest-only jumbo loan to purchase it.

Your life is never a perfectly measured product. When it comes to financing, you need one that accommodates your circumstances and is tailored to your specific needs, especially for self-made people who have succeeded and continue to succeed on their terms. One mortgage that does that for borrowers is an interest-only jumbo loan. An interest-only mortgage offers financial flexibility and can be a great option 

At mbanc, we have supported self-made individuals for years with premier lending solutions that help create the kind of financial freedom the American Dream was built on. Learn when our interest-only jumbo program makes sense in our blog:

What is an Interest-Only Jumbo Loan?

An interest-only jumbo mortgage is a non-conforming loan product that provides borrowers with essential financial flexibility. 

With an interest-only jumbo loan, you only make interest payments for the first ten years of the loan term. After this period ends, the loan amortizes into a standard 20-year or 30-year fixed mortgage, and you make payments on both the interest and principal. 

  • Low monthly payments
  • Greater financial flexibility 
  • Loan amounts up to $4 million
  • 40-year fixed terms with an initial 10-year interest-only payment
  • Amortization after the interest-only period into a conventional 30-year mortgage

“Our interest-only jumbo program offers great advantages. You can use this type of mortgage to purchase nicer, more expensive homes in prime markets that you wouldn’t be able to afford otherwise. On that note, we also offer DSCR options for interest-only jumbo mortgages, meaning you can qualify using the projected rental income from an investment property. Our passion and mission is to help you succeed on your terms.”Mayer Dallal, Managing Director, mbanc

Still, determining if this mortgage product is the right option for you depends on your priorities and financial situation.

When Does an Interest-Only Jumbo Loan Make Sense?

Several different situations exist in which an interest-only jumbo mortgage makes sense. If you are interested in increased cash flow to invest strategically, this could be a great option.

Other situations where this is a good option are when borrowers expect their income to rise in the future and want to purchase a higher-priced property than they can currently afford. The interest-only payment period makes it more affordable during the first few years.

People also use an interest-only jumbo loan if building equity in the property is a priority. This program also enables you to divert income to other investments to continue building wealth, which is great when building a portfolio of investment properties. 

On that note, when building a short-term rental portfolio, the interest-only period can serve as a window of time to get the property up and running so that by the time you are realizing an ROI, you can use those funds to pay the mortgage, meaning it will pay for itself.

Apply for an Interest-Only Jumbo Loan Today

An interest-only jumbo mortgage can open you up to unparalleled opportunities to build wealth and continue to live and succeed on your own terms. The American Dream starts at home, and an interest-only jumbo loan can help make it a reality. Plus, at mbanc, we celebrate and cater to self-made, unconventional borrowers with an approval process that minimizes paperwork and expedites financing. 

If you are interested in flexible financing and a streamlined, easy process, apply for an interest-only jumbo mortgage today.

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