Question 1

How long is the interest-only period?

Accepted Answer

Most loans offer 5 to 10 years of interest-only payments. After that, the loan resets and you pay both principal and interest.

Question 2

Does my balance go down during the IO period?

Accepted Answer

No. You're paying interest only, so your loan balance stays the same. Equity only builds through appreciation.

Question 3

Can I get an interest-only loan in Fairfield with a W-2 job?

Accepted Answer

Yes, but lenders still want strong credit and reserves. W-2 income is fine — this isn't just for self-employed borrowers.

Question 4

What happens when the interest-only period ends?

Accepted Answer

Payments jump significantly. You're now paying off the full balance over the remaining loan term. Plan for that increase.

Question 5

Is an interest-only loan right for a Fairfield rental property?

Accepted Answer

It can work. Lower payments improve monthly cash flow. But DSCR loans may be easier to qualify for on investment properties.

Interest-Only Loans in Fairfield, CA