Question 1

Who actually uses interest-only loans in Cupertino?

Accepted Answer

Mostly high-income tech employees and investors. RSU earners and business owners managing cash flow are the most common borrowers we see.

Question 2

What happens when the interest-only period ends?

Accepted Answer

Your payment recalculates to cover both principal and interest. Expect a meaningful jump — budget for it before you close.

Question 3

Can I refinance before the IO period expires?

Accepted Answer

Yes. Many borrowers plan to refinance or sell before principal kicks in. No outcome is guaranteed, so build flexibility into your plan.

Question 4

Are interest-only loans harder to get approved?

Accepted Answer

Yes. These are non-QM products with tighter reserve and credit requirements than conventional loans. Fewer lenders offer them.

Question 5

Do interest-only payments build any equity?

Accepted Answer

No principal is paid during the IO period. Equity only grows if the property appreciates — you're not paying down the balance.

Question 6

What loan amounts are typical for Cupertino IO loans?

Accepted Answer

Most fall in the jumbo range given local prices. Exact loan amounts depend on purchase price, down payment, and lender guidelines.

Interest-Only Loans in Cupertino, CA