Question 1

What happens when the interest-only period ends in Concord?

Accepted Answer

Your loan converts to a fully amortizing payment over the remaining term. A $700k balance that was $4,083 interest-only jumps to $5,985 when principal kicks in.

Question 2

Can I refinance before the interest-only period ends?

Accepted Answer

Yes, most Concord borrowers refinance or sell during the IO period. You need sufficient equity and qualifying income for the new loan.

Question 3

Do interest-only loans work for investment properties in Concord?

Accepted Answer

Absolutely. Investors use IO loans to maximize cash flow from rentals. Many lenders approve these for 1-4 unit investment properties.

Question 4

How much down payment do I need for an interest-only loan?

Accepted Answer

Expect 20-30% down minimum. Higher down payments unlock better rates and more flexible terms from lenders.

Question 5

Are interest-only loans more expensive than conventional mortgages?

Accepted Answer

Yes, rates run 0.5-2% higher than conventional loans. You pay for payment flexibility and non-QM underwriting standards.

Interest-Only Loans in Concord: Lower Payments, Strategic Flexibility