Question 1

What happens after the interest-only period ends?

Accepted Answer

Your payment jumps 40-50% as the loan converts to fully amortizing. Most borrowers refinance or sell before this happens.

Question 2

Can I refinance during the interest-only period?

Accepted Answer

Yes. You can refinance anytime if rates improve or your financial situation changes. No prepayment penalty on most programs.

Question 3

Do I build equity with interest-only payments?

Accepted Answer

Only through property appreciation. Your balance stays flat since you're not paying principal. Equity comes from market gains.

Question 4

What credit score do I need for interest-only in Half Moon Bay?

Accepted Answer

Minimum 660-680 for most programs. Higher scores above 720 unlock better rates and larger loan amounts.

Question 5

Can self-employed borrowers get interest-only loans?

Accepted Answer

Yes. Bank statement programs let you qualify without tax returns. Most lenders need 12-24 months of statements.

Interest-Only Loans in Half Moon Bay: Lower Payments for Coastal Properties