Question 1

What happens when my interest-only period ends in Commerce?

Accepted Answer

Payments jump 40-60% as principal amortization starts. Most borrowers refinance before this happens. You need enough equity or income to handle the new payment.

Question 2

Can I use interest-only for investment properties near Commerce industrial areas?

Accepted Answer

Yes. DSCR underwriting is available for multi-family and rental properties. The property's rental income qualifies you instead of personal income.

Question 3

How much more expensive are interest-only loans in Commerce?

Accepted Answer

Rates run 1-2% above conventional mortgages. A $500k loan costs $400-800 more monthly in interest compared to traditional financing.

Question 4

Do Commerce business owners qualify easier for interest-only loans?

Accepted Answer

Not easier—different documentation. You'll show bank statements or business cash flow instead of W-2s. Reserve requirements stay strict regardless of income type.

Question 5

Can I refinance an interest-only loan before the payment increases?

Accepted Answer

Yes, most borrowers refinance years before amortization starts. You need sufficient equity and qualifying income. Market conditions affect your refinance options.

Interest-Only Loans in Commerce: Strategic Financing for Investors & High-Income Borrowers