Question 1

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, you pay principal and interest — and your payment goes up.

Question 2

Can I use an interest-only loan to buy a Vallejo rental property?

Accepted Answer

Yes. Many investors do. Just confirm the rental income covers the payment with room to spare.

Question 3

Do I need perfect credit to qualify?

Accepted Answer

Not perfect, but strong. Most lenders want 700 or above. Below that, your options shrink fast.

Question 4

Will I owe the same amount after 10 years?

Accepted Answer

Yes, if you only made interest payments. You don't pay down the loan balance during that period.

Question 5

Are interest-only rates higher than conventional rates?

Accepted Answer

Usually, yes. Non-QM products carry a rate premium. Rates vary by borrower profile and market conditions.

Question 6

Can I refinance out of an interest-only loan later?

Accepted Answer

Yes, and many borrowers plan to do exactly that. Just make sure you'll have enough equity when the time comes.

Interest-Only Loans in Vallejo, CA