Question 1

What happens when the interest-only period ends?

Accepted Answer

Your payment increases to cover principal and interest over the remaining loan term. Most borrowers refinance or sell before this happens.

Question 2

Can I pay down principal during the interest-only period?

Accepted Answer

Yes. You're only required to pay interest, but most lenders allow extra principal payments without prepayment penalties.

Question 3

Do interest-only loans work for primary residences in Shasta Lake?

Accepted Answer

Yes, but investment properties are more common. You still need strong credit and reserves regardless of property use.

Question 4

How do crypto assets qualify as reserves now?

Accepted Answer

Some non-QM lenders verify cryptocurrency holdings and count them as reserves. The crypto must be in established accounts with clear ownership documentation.

Question 5

What credit score gets the best interest-only rates?

Accepted Answer

740+ credit scores access the lowest rates. Below 680, your rate jumps significantly or you may not qualify at all.

Interest-Only Loans in Shasta Lake: Lower Payments When You Need Flexibility