Important Information Regarding Interest-Only Refinancing
Are you interested in paying just the interest of a loan? If so, interest-only loans are available with the option of paying just the interest, or paying interest and as much principal as you want in any given month. The interest-only option is available in the initial years of the loan for a fixed number of years. All payments will include principal and interest after the interest-only period has ended. Interest-only loans can be either traditional fixed-rate or adjustable-rate mortgages. ZeroPoint Lending offers interest-only refinance options that are interest-only for the first 10 years.
How Interest-Only Loans Work:
If you decide to make the interest-only payment one month, then that month's payment will be lower than if you had made the principal and interest payment. Your interest rate may or may not be lower than a traditional mortgage, but you will have the option of choosing your payment. Having this type of payment flexibility is one of the smartest ways to manage personal finances.
Do you want to have control over you cash flow? If yes, you may choose to refinance from a traditional home loan to an interest-only loan. The following example illustrates the payment flexibility of refinancing a $200,000 mortgage to an interest-only loan.
$200K @ 5.75% Interest-Only Payment.............$958.00
$200K @ 5.75% Principal and Interest Payment....$1,167.00
Cash flow difference is $209.00 a month.*
By taking out an interest-only loan, in months when more cash is needed, you will not have to pay both principal and interest, but just the interest itself.
Who Is an Interest-Only Refinance For?
Refinancing to an interest-only loan is a good idea for anyone who would like put their money to work. For instance you can make interest-only payments and put the difference into an investment which brings a higher rate or return. You will not find this option available with traditional mortgages. This is something to consider if you're not maximizing your yearly 401(k) and IRA contributions.
The following are several ways to use the money you have saved:
Depending upon the balance of your existing loan, refinancing to an interest-only loan could get you access to thousands of dollars over the course of several years and allow you to save or spend money that you had dreamed of.
People who expect to move again before the end of the interest-only period of their home loan will also benefit from this option. | 
