Question 1

What happens when the interest-only period ends?

Accepted Answer

Your payment resets to principal plus interest, often jumping 30-50%. Most borrowers refinance before reset or sell the property. Budget for the higher payment from day one.

Question 2

Can I pay principal during the interest-only period?

Accepted Answer

Yes, most lenders allow extra principal payments without penalty. You control when and how much. This builds equity and reduces your payment shock at reset.

Question 3

Do interest-only loans work for owner-occupied homes in Holtville?

Accepted Answer

Yes, but lenders scrutinize these more than investment properties. You need strong reserves and income justification. Most Holtville borrowers use them for investment properties instead.

Question 4

How much higher are interest-only rates?

Accepted Answer

Expect 0.5-1.5% above conventional rates as of February 2026. Your credit score and down payment affect the premium. Rates vary by borrower profile and market conditions.

Question 5

What credit score do I need for interest-only in Holtville?

Accepted Answer

Most lenders want 700+, though some accept 680 with larger down payments. Lower scores mean higher rates and stricter income requirements.

Interest-Only Loans in Holtville: Lower Payments, Flexible Cash Flow Strategy