Question 1

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

Accepted Answer

Your loan converts to fully amortizing payments over the remaining term. Monthly payments typically increase 30-50% unless you refinance or sell.

Question 2

Can I refinance out of an interest-only loan before payments adjust?

Accepted Answer

Yes, most borrowers refinance before the adjustment. You'll need sufficient equity and qualifying income based on market conditions at that time.

Question 3

Do interest-only loans work for Martinez investment properties?

Accepted Answer

Absolutely—they maximize rental cash flow. Just verify the numbers work after the interest-only period ends or plan your exit strategy.

Question 4

How much down payment do I need for Martinez properties?

Accepted Answer

Expect 20-30% down minimum. Higher down payments often secure better rates and terms from non-QM lenders.

Question 5

Are interest-only loans riskier than conventional mortgages?

Accepted Answer

They require more financial planning since you're not building equity through payments. Risk depends on your cash reserves and property appreciation.

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