Question 1

How long does the interest-only period last?

Accepted Answer

IO periods typically run 5 to 10 years. After that, the loan recasts and you pay full principal and interest.

Question 2

Will my payment increase after the IO period?

Accepted Answer

Yes — often significantly. Your remaining balance amortizes over fewer years, which raises the payment sharply.

Question 3

Can I pay down principal during the IO period?

Accepted Answer

Most programs allow it. You're just not required to. Extra payments reduce your balance and future payment shock.

Question 4

Is an interest-only loan available for a primary residence in Windsor?

Accepted Answer

Yes, but fewer lenders offer IO on primary homes. Investment and second-home scenarios get more lender options.

Question 5

What credit score do I need for an IO loan in Sonoma County?

Accepted Answer

Most lenders want 700 or higher. Some go lower with larger down payments and strong reserves.

Question 6

How does an IO loan affect refinancing later?

Accepted Answer

You'll refinance with no equity gained from payments. Property appreciation — not paydown — drives your future equity position.

Interest-Only Loans in Windsor, CA