Question 1

How long is the interest-only period?

Accepted Answer

Most programs run 5 or 10 years IO. After that, the loan amortizes fully over the remaining term — and payments rise.

Question 2

Do I build equity during the IO period?

Accepted Answer

Not through payments — you only pay interest. Equity builds if the property appreciates in value.

Question 3

Can I make principal payments during the IO period?

Accepted Answer

Usually yes. Most programs allow voluntary principal payments. Check the specific loan terms — some have restrictions.

Question 4

Is an interest-only loan harder to qualify for?

Accepted Answer

Yes. It's a non-QM product. Expect tighter credit, income, and reserve standards than a standard jumbo or conventional loan.

Question 5

What happens if rates rise before I refinance?

Accepted Answer

That's the real risk. If rates spike and home values drop, your refinance exit gets harder. Have a backup plan.

Question 6

Does SRK CAPITAL offer interest-only loans in Larkspur?

Accepted Answer

Yes. We access these through wholesale lenders. Rates vary by borrower profile and market conditions.

Interest-Only Loans in Larkspur, CA