Question 1

What happens when the interest-only period ends?

Accepted Answer

Payments jump to fully-amortizing amounts based on remaining loan term. Most borrowers refinance or sell before this happens. Always qualify at the higher payment to avoid surprises.

Question 2

Can I make principal payments during the interest-only period?

Accepted Answer

Yes, most loans allow extra principal payments without penalty. You're not required to pay principal, but you can. This gives you control over when to reduce the balance.

Question 3

Do interest-only loans work for rental properties in Menlo Park?

Accepted Answer

They can, but DSCR loans often price better for investment properties. Interest-only works best for owner-occupied homes where you want personal cashflow flexibility rather than rental income optimization.

Question 4

How do lenders verify crypto assets for qualification?

Accepted Answer

Lenders use third-party verification services to confirm holdings and value. They apply haircuts for volatility, typically 30-50%. You don't need to liquidate before closing, just prove verified ownership.

Question 5

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

Accepted Answer

Most programs require 700 minimum. Better rates kick in at 740+. Lower scores work occasionally through portfolio lenders but expect 0.50-1.00% rate premiums and higher down payment requirements.

Question 6

Should I choose a 5-year or 10-year interest-only period?

Accepted Answer

Depends on your exit timeline and income growth expectations. Longer periods cost more in rate but give more flexibility. Most Menlo Park buyers choose 7-10 years to match vesting schedules.

Interest-Only Loans in Menlo Park: Lower Payments for High-Income Tech Professionals