Question 1

What happens when the interest-only period ends?

Accepted Answer

Your payment jumps because principal payments start. Most borrowers refinance, sell, or had planned for the higher payment. We map out that exit strategy before you close.

Question 2

Can I pay principal during the interest-only period?

Accepted Answer

Yes, most lenders allow extra payments toward principal without penalty. You control when and how much to pay down the loan balance.

Question 3

Do interest-only loans have higher rates?

Accepted Answer

Usually, yes. You're paying for payment flexibility, and lenders price that risk into the rate. Rates vary by borrower profile and market conditions.

Question 4

How much do I need in reserves?

Accepted Answer

Expect 12-24 months of full housing payments in reserves. Lenders want proof you can handle the reset when principal payments begin.

Question 5

Can I use crypto assets to qualify?

Accepted Answer

As of February 2026, some non-QM lenders accept verified crypto holdings as reserves and income. We connect you with lenders offering these newer programs.

Interest-Only Loans in Portola Valley: Smart Cash Flow for High-Net-Worth Borrowers